Oil pinch arrives for Japanese petrochemicals

Abstract

Olefins plants in Japan were buying naphtha feedstock for about $27 a kiloliter near the end of last year. current figure is about $40. Ethylene prices have made a corresponding jump—from 6 cents a pound in late autumn to about 8.5 cents at present. For Japanese petrochemicals producers, the oil pinch has arrived. Compounded of restricted supplies and the doubling at year's end of posted prices for Persian Gulf crude, it promises to push prices still higher. Spot purchases of imported naphtha, industry sources tell C&EN in Tokyo, already are being made at close to $67 a kiloliter. (Japan regularly imports about 10% as much naphtha as is produced in domestic refineries.) It's a good time to be working in a company's planning department, comments one executive in a leading Japanese chemical firm. The price upheaval that's coming is the perfect chance to make needed changes in product mix and move the chemical companies ...