Japan's ethylene output hits 35-year low with China capacity set to soar

Weak Chinese demand drives petrochemical oversupply in Asia

20240125N Ethylene

Ethylene production facilities with a combined capacity of 26 million tonnes annually are slated to open in China from 2023 through 2027. (Photo by Shin Watanabe)

SHIN WATANABE and KOICHI MINAKAMI, Nikkei staff writers

TOKYO -- Japanese production of ethylene, a chemical for plastics used in products from cars to electronics, has sunk to the lowest in 35 years as China's fast-growing capacity threatens to cause a bigger supply glut in the region.

Production fell 1.7% last year to 5.31 million tonnes, the lowest since 1988, the Japan Petrochemical Industry Association said Thursday. Output fell for a second straight year.

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