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

New US alliance to promote postal package delivery service

Textiles | On 15th Aug 2018

New US alliance to promote postal package delivery service

A group of US retailing, e-commerce and logistics firms recently...

Courtesy: Industriall Union

Apparel/Garments | On 15th Aug 2018

IndustriALL-Esprit agreement to improve workers' rights

IndustriALL Global Union recently signed a global framework agreement ...

Indian minister orders fresh consultations on e-com policy

Textiles | On 15th Aug 2018

Indian minister orders fresh consultations on e-com policy

Indian commerce and industry minister Suresh Prabhu has asked for...

Interviews View All

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Top executives
Textile industry, India

The event should be organised every year

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Manoj Sorathiya

Surat-based Sunrise Imports & Exports Co is a manufacturer and...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Robert Brunner
Devereux

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

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

Leave your Comments


August 2018

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

news category


Related Categories:

Advanced Search