On October 16, Idemitsu Kosan announced it was reducing ethylene output at its facilities in Chiba and Yamaguchi. This decision comes amidst concerns that the situation in the Hormuz Strait, which is effectively closed off, could disrupt the procurement of naphtha, a key raw material for ethylene production. Although the company did not specify the timing or scale of the production cuts, it had previously informed its partners about the possibility of halting operations, although a final decision on shutdowns has not yet been made.

Idemitsu’s move follows similar actions taken by other major chemical companies such as Mitsubishi Chemical and Mitsui Chemicals, who have also started to cut their ethylene production due to worries about supply chains linked to the volatile Middle East region. As of now, these production cuts mean that at least six out of the twelve ethylene production facilities in Japan have reduced their output, a significant shift in the domestic chemical manufacturing landscape.

The reduction in ethylene production not only reflects the immediate impact of geopolitical tensions on the chemical industry but also highlights the industry's vulnerability to international supply chain disruptions. The ongoing concerns surrounding resource procurement may lead to further production adjustments and operational decisions in the coming weeks as companies navigate this challenging environment.