Wedoany.com Report on Feb 26th, Latest statistics from the Japan Petrochemical Industry Association show that in January 2026, Japan's ethylene production plant utilization rate was 75.8%. This figure indicates that Japan's ethylene plant utilization rate has remained below the 90% boom target for 42 consecutive months, and it is also the fifth consecutive month below 70%.

Japan's ethylene production in January was 433,700 tons, a year-on-year decrease of 6.9%. Part of the reason for the decline in production was that one production unit underwent planned maintenance during the month, whereas there were no such maintenance arrangements in the same period last year. The association's analysis points out that the increase in total ethylene production in Asia has led to Japan's domestic plant utilization rate remaining at a low level for an extended period. Within the industry, active discussions are underway to optimize the capacity structure by consolidating existing facilities.

Recently, Mitsubishi Chemical Group and Asahi Kasei announced plans to close their joint venture plant in Okayama Prefecture in fiscal year 2030 and consolidate its operations into Mitsui Chemicals' plant in Osaka Prefecture. According to the plan, by fiscal year 2030, Japanese chemical companies will shut down four production lines, with an expected capacity reduction of 30%, bringing it down to 4.4 million tons. This series of adjustments aims to respond to market changes and enhance overall competitiveness.