Statistics recently released by the Japan Petrochemical Industry Association show that in 2020, Japan's ethylene production as a basic raw material for chemical products is about 5.92 million tons, a decrease of 7.7% from 2019. This is the first time the product has fallen below 6 million tons since 1993. Analysts said that the decline in production was mainly due to the new crown epidemic, automobile manufacturing and other industrial sectors' demand and the decline in personal consumption. However, although ethylene production has not yet reached the level of 2019, demand in industries such as automobile manufacturing has rebounded.
In December 2020, the utilization rate of Japanese ethylene production equipment reached 94.2%, exceeding 90% for 7 consecutive months, which means that the industry is still in a boom cycle. In December 2020, Japan's ethylene production was 517,800 tons, a year-on-year decrease of 8.3%.
In the summary data of the five major resin production and domestic shipments in December 2020 compiled jointly by the Japan Petrochemical Industry Association and the Japan PVC Industry and Environment Association, only polypropylene has increased year-on-year, while other resins have decreased year-on-year.
The association and the president of Mitsubishi Chemical Corporation stated that the prospects of Japan's petrochemical industry in 2021 will be affected by the epidemic situation, but it is not expected to be worse than 2020. The utilization rate of ethylene production equipment is expected to continue to exceed 90%.
Source: Chemical Network
