Weaker demand cuts Japan’s petrochemical output in 2022

: Petrochemicals
23/01/30

Japan's petrochemical product output declined last year compared with 2021 because of shrinking export and domestic demand.

Ethylene output totalled 5.4mn t last year, down by 15pc from 2021, according to the Japan petrochemical industry association (JPCA). The fall reflected lower cracker operating rates, which dropped by 6.7 percentage points from the 2021 average to 88.1pc. Cracker operating rates below 90pc typically indicate a weak domestic economy, JPCA said.

Japanese petrochemical production was hit by an economic recession in Asia, especially in China with its zero-Covid policy, as well as in the US and Europe, according to JPCA. Rising commodity prices on the back of higher fuel costs also curbed corporate and consumer demand for petrochemical goods. The Japanese government had eased Covid-19 restrictions but this failed to support demand last year.

Production of polypropylene (PP) and low-density polyethylene (LDPE) declined by 14pc to 2.1mn t and by 8.5pc to 1.3mn t respectively last year. Output of polyvinyl chloride (PVC) dropped by 5.7pc to 1.5mn t. Ethylene glycol and acrylonitrile production fell by 34pc to 351,700t and by 6pc to 422,500t respectively. Styrene-butadiene rubber (SBR) output declined by 16pc to 344,600t, along with lower vehicle tire production.

Aromatics production also declined, with xylene and benzene output falling by 10pc to 4.5mn t and by 17pc to 2.8mn t last year respectively. Toluene output dropped by 13pc to 1.3mn t last year.

Japan's ethylene output in December fell by 16pc on the year to 482,100t, with average cracker operating rates during the month down by 16 percentage points to 81.4pc. Cracker operating rates had remained below 90pc for five consecutive months since August last year.

PP output dropped by 16pc to 182,200t in December, while LDPE production dropped by 18pc to 117,700t. PVC production fell by 9.3pc to 128,300t last month, while ethylene glycol and acrylonitrile output declined by 49pc to 26,300t and by 18pc to 32,100t respectively. SBR production was also lower by 21pc on the year at 30,800t in December.

Xylene and benzene output fell on the year by 13pc to 427,100t and by 19pc to 263,700t respectively last month. Toluene production also dropped by 17pc to 117,800t.

By Nanami Oki

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