Japan cuts October naphtha imports for ethylene

Japan's naphtha imports in October for ethylene production fell from a year earlier for a second consecutive month, despite higher production of ethylene over the period.

Japan imported 950,667t of naphtha as a feedstock to ethylene in October, down by 26.5pc from a year earlier and by 9.9pc compared with September, according to data from the ministry of economy, trade and industry (Meti).

Ethylene production in October rose by 1.2pc from a year earlier to 559,200t, marking the eighth consecutive yearly increase. All the country's ethylene crackers were operational last month compared with one cracker closed for regular maintenance in October 2018.

Japan's import costs for naphtha used for ethylene production averaged $491/t for October, down by 27.9pc from a year earlier and by 2pc from September.

Meti's survey asks Japanese ethylene producers to submit details of their purchases, which differs from customs data released by the finance ministry. October customs data, which include naphtha as feedstock to non-ethylene use, will be released on 28 November.

By Motoko Hasegawa