Japan's naphtha imports for ethylene production moved up in July from a year earlier, marking the second consecutive year-on-year rise, as a result of lower supply from domestic refineries.
Japan imported 1.3mn t of naphtha as a feedstock for ethylene production last month, up by 15.1pc from a year earlier and by 4.9pc from June, according to data from the country's trade and industry ministry (Meti).
Ethylene output fell by 3.1pc on the year to 500,900t in July, as three crackers were closed for regular maintenance compared with just one in July 2019.
A fall in supplies from domestic refineries prompted petrochemical firms to increase imports, despite lower operations at their ethylene crackers.
Japan's naphtha production totalled 174,915 b/d from 28 June to 1 August, down by 50.6pc from 353,955 b/d during the same period in 2019, according to the Petroleum Association of Japan. The decline reflected refinery run cuts because of weak demand for oil products during the Covid-19 outbreak.
Japan's import costs for naphtha used in ethylene production averaged $329.50/t for July, down by 36.5pc from a year earlier but up by 33.8pc from June.
Meti's survey asks Japanese ethylene producers to submit details of their purchases, which differs from customs data released by the finance ministry. The July customs data, which include naphtha as a feedstock for non-ethylene use, will be released on 28 August.
