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| November 24, 2004 |
| Mitsubishi Rayon Co., Ltd. |
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| Announcement of price raise on MMA
Monomers, MAA, and Methacrylic Esters |
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| Mitsubishi Rayon Co., Ltd. has decided to raise
the prices of methyl methacrylate (MMA) monomers, and methacrylic
acid (MAA) and methacrylic esters in the domestic market, effective
December 1, 2004, and has begun conducting price negotiations
with its customers. |
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| Prices will be increased by the following amounts: |
| MMA monomers, MAA |
¥20/kilogram |
| Methacrylic esters |
¥20-30/kilogram |
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[Background]
Rising prices of naphtha and acetone, the raw materials of MMA
monomers, are generating upward pressure on costs. In the Japanese
and other East Asian markets, demand for MMA monomers, centering
primarily on clear resin products, remains strong, and we continue
to receive numerous business inquiries. In contrast, on the
supply side, exports from the West to the East Asian region
have been curtailed, due in part to factors beyond the industry’s
control. For these reasons, demand exceeds supply on a worldwide
scale.
The price hike being implemented
in the East Asian region marks a dramatic increase over the
previous price hike conducted in August of this year. Recently,
the price of MMA monomers rose to $1,900 per metric ton on a
C&F (cost and freight) basis, and is expected to reach $2,000
per metric ton by year-end.
Regarding
methacrylic esters, surging prices for MMA monomers and MAA
(the primary raw materials for methacrylic esters) have caused
a deterioration in the profitability of the methacrylic ester
business. Due to the surging price of naphtha, prices of higher
alcohols are increasing, which has also eroded the profitability
of methacrylic ester operations. Given the shortage of MMA monomers
and MAA, manufacturers are being required to adjust production
levels. On the other hand, demand is extremely strong for the
resins used in paint, which is the primary use of methacrylic
esters, and demand exceeds supply on a global scale. Accordingly,
the price in East Asia continues to rise.
In
our view, there exists an urgent need for an improvement of
the profitability of the MMA business across the petrochemical
industry as a whole. Taking into consideration these various
factors, we have made the decision to raise the price of these
products in the domestic market. |
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| For further inquiries, please contact: |
| Mitsubishi Rayon Co., Ltd. |
| Public and Investor Relations Office |
| e-mail:
koho@mrc.co.jp |
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The contents shown herein are accurate as of the time of posting.
