Japan steel, ethylene production fall to multidecade lows on China glut

Exports have lost steam even as domestic demand contracts

20240123N China steel

A steel mill in China. Steelmakers in Japan have made more progress on restructuring than the chemical industry has. (China Daily via Reuters)

EMI OKADA and YUJI OHIRA

TOKYO -- Japanese output of plastics building block ethylene and steel has dropped to the lowest levels in decades as domestic demand shrinks while overproduction in China weighs on prices.

Ethylene production in Japan totaled 4.98 million tonnes in 2024, falling below 5 million for the first time since 1987, data released Thursday by the Japan Petrochemical Industry Association shows.

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