Ethylene supply reverts in Japan, but demand outlook appears dim

25-May-11

The supply network for ethylene, an essential building block for plastics, is "finally coming back to life," as per Japan Petrochemical Industry Association Chairman. However, the same does not hold true for demand. With Mitsubishi Chemical Corp.'s resumption of production at its Kashima complex in Ibaraki Prefecture, all of the country's ethylene capacity is going back online, as per Asia Pulse. Japan’s largest imported of ethylene- China is plagued with inventory pile up amid Beijing's inflation-fighting policies and slowing demand. For the domestic market, Takahashi sees a short-term drop-off in ethylene shipments to the automobile and electronics industries.