Following its Japanese counterparts -Sumitomo Chemical Co, Mitsui Chemicals Inc and Asahi Kasei Corp, Mitsubishi Chemical Corp plans to lower production at its naphtha crackers. Sumitomo Chemical and Asahi Kasei have cut ethylene output by about 5% since July and Mitsui Chemicals plans to reduce output by 10% between August and September.
In a bid to cope with feeble demand, Mitsubishi Chemical plans to reduce operating rates at a naphtha cracker, starting next month. Three crackers, with total capacity to produce 1.3 mln tpa of ethylene, will be shuttered until the second half of December, bringing down production at three crackers from the current level of 93% to about 80-85%. Two of the crackers are located at Kashima, and one at Mizushima.