Friday, August 15, 2008

Japan Reduce Exports of Chemicals Due to Stagnation Price

JETROAs the rapid growth of petrochemical production, lead to stagnation in export prices. Rising prices of chemical raw material in circumstances reduced the profit margins, Japanese companies plan to reduce the export of these products, for example, special ink.

Japan's petrochemical producers are substantial reduction of overseas exports, the reason is China's output of these products led the increase in exports of weak prices, curbing profits.
Asahi Kasei Chemicals Corp in May to reduce the company's exports of vinyl chloride. The company's officials claimed that the export more, the company suffered greater losses.

Mitsubishi Chemical Corp and some other companies also cut the oil exports of chemicals, these companies in June, exports fell 27 percent to 110,000 tons.

Mitsubishi Chemical Corp in May have reduced exports of vinyl chloride. Mitsui Chemicals Inc plans in the coming years to reduce their high-grade terephthalic acid, the export scale, high-grade terephthalic acid is used in the manufacture of polyester fiber.

These measures are to solve the problem of petrochemical products' weak prices. China's current exports of polyethylene for about 1,930 U.S. dollars/ton to the current exchange rate of about 212 yen/kg. Even if transport costs included, than Japan's export similar products 250 yen/kg lower the price of 15%.

The spot price of vinyl chloride in the past few years rose 8 percent to about 1,490 U.S. dollars / ton. However, this price or the benefits of raw material naphtha prices rose by 50 percent by erosion, resulting in many oil exporting chemicals business needs of enterprises bleeding.

This situation should be blamed on China's oil chemical plant's rapid construction of a large number. China's PTA production capacity in the past five years increased by four times, inhibit the export prices rose.

In addition, Saudi Arabia and elsewhere in the Middle East's new production of vinyl chloride and polyethylene plant will start next year, in such places, the cheap by-product of oil refining can replace petroleum naphtha to produce chemicals.

Originally Posted:
Author: Angulo Fu