Home / Knowledge / News / Textiles / Soaring naphtha prices pulls down chemical production
Soaring naphtha prices pulls down chemical production
01
Aug '08
Chemical manufacturers in Japan are cutting back on their regular production as profit margins continue to get squeezed due to spiraling prices of naphtha, a key raw material for petrochemical products.

As such, leading industry player, Mitsubishi Chemical Corp (MCC), has also decided to delay the launch of operation at its new polycarbonate resin plant in Kitakyushu, Fukuoka Prefecture, southwestern Japan.

Initially scheduled to start operating by this month, this plant, which has an annual capacity of 60,000 tons, will only commence production in November. But even then the precise date will depend upon the market conditions.

Moreover, Mitsui Chemicals Inc, has closed one of its three production lines at its high-purity terephthalic acid plant in Waki, Yamaguchi Prefecture, western Japan. Besides, one of the remaining two lines is also under suspension.

As a consequence, overall annual output capacity of the plant has dropped by 50 percent to touch 400,000 tons.

Experts have reasoned out that a cut in chemical production has been brought about largely because manufacturers have failed to fully pass on higher cost of raw materials to their products. The situation has worsened to such an extent that producers may have to contemplate further cut in output if the demand continues to fall because of other factors like a slowdown in US economy.

Must ReadView All

Courtesy: Reliance Industries

Textiles | On 24th Apr 2017

Reliance’s FY17 revenue from petrochemicals up 12.2%

Increase in prices across polymers and polyester chain has...

Textiles | On 24th Apr 2017

India, Kazakhstan to increase cooperation in textiles

Indian and Kazakhstan are deliberating upon increasing cooperation in ...

Textiles | On 24th Apr 2017

GST reflects 'One nation, One aspiration' spirit: Modi

Prime Minister Narendra Modi has said that the Goods and Services Tax ...

Interviews View All

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search