Recently, statistics released by the Japan Petrochemical Industry Association showed that Japan’s ethylene plant utilization rate stood at 76.2% in October. The rate has remained below 70% for two consecutive months and below 90% for 39 straight months—a threshold regarded as the benchmark for gauging industry prosperity. The association stated that despite successive structural reform measures on production facilities implemented by enterprises, the results have been negligible.

Japan’s ethylene output reached 452,300 tons in October, representing a year-on-year increase of 9%. The growth was mainly attributed to the resumption of full operation at all plants this year, whereas some facilities underwent scheduled maintenance in the same period last year. From the perspective of maintaining the operation and costs of boilers and related equipment, the ethylene plant utilization rate needs to stay at least between 70% and 75%. Since the start of 2025, the utilization rate of Japan’s ethylene plants has hovered around 70% in most months.

To address the prolonged slump in ethylene plant utilization, Japan plans to cut its ethylene production facilities by 30% from the current 12 units to 8 units by around 2030. In the field of derivatives of basic chemicals such as ethylene, Mitsui Chemicals, Idemitsu Kosan and Sumitomo Chemical have all announced plans to integrate their domestic general-purpose resin businesses.