Japan Ethylene Operating Rate Falls Below Historical Low

Recently, Tianjin Nangang Ethylene’s new polypropylene grade product, r-TPO (reactor thermoplastic polyolefin) PPB-MP28, was exported to South Korea for the first time, successfully entering the local high-end automotive raw materials market. Featuring excellent properties such as high impact resistance and low odor, the product is mainly used for modification processing and is applied in key components such as interior trims and bumpers for Korean-brand automobiles.

The Japan Petrochemical Industry Association reported in early May that the utilization rate of ethylene plants fell to 67.3% in April, the lowest level since comparable data began in 1996, down from the previous low of 68.8% set in March. The association indicated that this rate has decreased from 75.7% in February, during a time of escalating tensions in the Middle East, which effectively closed the Strait of Hormuz and disrupted the transportation of oil and petroleum products, including naphtha.

Recently, under the supervision of Dagang Customs under Tianjin Customs, a batch of ethylene weighing approximately 5,000 tonnes produced by Sinopec INEOS (Tianjin) Petrochemical Co., Ltd. successfully completed export customs clearance procedures and was shipped to South Korea aboard the vessel “Maple Coral.” This marks the successful completion of the first ethylene export by sea through Tianjin Port.

Mitsubishi Chemical Corporation announced that it will discontinue the production and sales of certain epoxy resin products at the Kawajiri Site of its Tokai Plant in Yokkaichi City, Mie Prefecture, Japan, with the related business expected to cease around the end of September 2027.Gradually conclude. This decision involves multiple product lines, including:Bisphenol A liquid epoxy resin, Bisphenol F liquid epoxy resin, liquid and solid epoxy resins, and various curing agents。 For some products, the Company expects to continue maintaining market supply and sales by outsourcing production to external enterprises. The company has set September 30, 2027 (planned) as the final production date for the relevant products.

Recently, good news came from the Phase II Stage I project of Shaanxi Coal Group Yulin Chemical Co., Ltd. (“Yulin Chemical”): the main structures of the No. 1 and No. 2 polypropylene extrusion pelletizing buildings were successfully topped out. The successful completion of this key milestone marks the full transition of polypropylene unit construction into the critical sprint phase of equipment installation, laying a solid foundation for subsequent internal equipment installation, pipeline laying, and system commissioning.