Japan's ethylene output hits 35-year low with China capacity set to soar

TOKYO -- Japanese production of ethylene, a chemical for plastics used in products from cars to electronics, has sunk to the lowest in 35 years as China's fast-growing capacity threatens to cause a bigger supply glut in the region.

Production fell 1.7% last year to 5.31 million tonnes, the lowest since 1988, the Japan Petrochemical Industry Association said Thursday. Output fell for a second straight year.