| MMA monomer is in strong demand on the markets of East Asian countries, and production cannot keep up with demand from the IT sector, particularly for light-guide panels for use in LCDs. As the Company is scheduled to carry out large-scale regular maintenance and repair work on its production facilities in the third and fourth quarters of this term, the supply situation for these products will become even tighter than at present.
In addition, crude oil prices have passed the $60/bl mark, as a result of which the price of naphtha remains at a high level and could well go even higher. A rally in the market price of acetone, in line with the rise in prices of naphtha and other raw materials and fuels, is seen as inevitable, and this would push the cost of methacrylate monomers upward. Similarly, the production cost of derivatives such as functional esters will also rise.
In view of these circumstances, the Company finds itself with no alternative but to raise the prices of its MMA, MAA, and functional esters for export in order to improve its profitability and ensure sufficient retained earnings to finance forward-looking investment. |
