Japanese Petrochemical Firms Cut Ethylene Output

Japanese petrochemical companies, including Mitsubishi Chemical Group, Mitsui Chemicals, and Idemitsu Kosan, are reducing or considering halting ethylene production due to concerns over naphtha supply shortages from the Middle East. This is a direct consequence of escalating tensions in the region and the potential effective closure of the Strait of Hormuz, a critical shipping route. Japan relies heavily on Middle Eastern naphtha, with about 60% of its supply imported and 70% of that coming from the Middle East. The production cuts by these major firms will impact the supply of ethylene, a key raw material for plastics, synthetic fibers, and other industrial products, potentially leading to broader economic consequences for Japan's manufacturing sector and global supply chains.