en.Wedoany.com Report on Mar 27th, The latest data released by the Japan Petrochemical Industry Association on March 25th shows that the average operating rate of Japan's naphtha cracking units in February was 75.7%, a slight decline from 75.8% in January and 75.9% in the same period last year, marking the lowest level since June last year (74.8%).
Market sources pointed out that due to the situation in the Middle East, naphtha supply has tightened. Japanese ethylene production units have already reduced their operating loads, and it is expected that the operating rate may further decline in the coming months.
Japan relies on the Middle East for approximately 40% of its naphtha consumption through imports, with another 20% coming from other regions. The current changing situation in the Persian Gulf and the Middle East poses certain challenges to the security of Japan's petrochemical raw material supply, drawing close attention from the industry.
Statistical data shows that Japan's ethylene production in February fell by 23% month-on-month to 334,200 tons, setting a new historical low, reflecting the direct impact of the Middle East situation on Japan's ethylene production.
Industry analysts believe that naphtha, as a key raw material for ethylene production, has its supply stability directly linked to the operation of the downstream petrochemical industry chain. If the situation in the Middle East continues to fluctuate, Japanese petrochemical companies may face dual pressures of rising raw material procurement costs and supply uncertainty. Some companies have already begun evaluating and adjusting their raw material sourcing structure to reduce dependence on a single region.
The Japan Petrochemical Industry Association stated that it will continue to monitor developments in the raw material market and release relevant information in a timely manner to help member companies manage production scheduling and risk. The association also called on the industry to strengthen the diversification of its supply chain to enhance resilience against unexpected events.
