Japan PO and derivatives production, sales up in July

Japan's propylene oxide (PO) production rose in July, but stocks fell following brisk domestic sales in June-July, according to the latest data from the Ministry of Economy, Trade and Industry (Meti) .

PO production increased by 4.8pc on the month to 24,900t in July, while inventories fell by 15.6pc to 12,200t, compared with a January-June average of 14,800t/month.

June sales had risen by 12.5pc month on month to 24,300t, outstripping that month's production, and July sales were at a similar elevated level, helping to draw down stocks. Average monthly sales in January-May were 21,000 t/month and in 2023 were 22,000 t/month.

Most of Japan's PO production is for domestic use, with around 1,500t exported so far this year, mainly to the US.

Downstream, July production of flexible polyurethane foam rose by 16.4pc in July to 10,200t, compared with a January-June average of 8,400t/month. Sales also rose by 15.4pc to 9,600t, helping to temper the rise in stocks, which reached 2,700t, broadly in line with the January-June average of 2,600t/month.

And production of rigid polyurethane foam also rose in July, up by 10.7pc month on month to 5,700t, well above the average 4,800 t/month produced in the first half of the year. Sales rose by 16.3pc to 5,300t in July, leaving stocks almost flat from June at 1,300t.

By Laura Tovey-Fall