Tokyo - Mitsui Chemicals, a Japanese chemical company, predicts that the TDI supply and demand outlook will be eased in 2018 compared to 2017.
In an internet investor briefing, the company stated that the market performance was positive in 2017.
Osamu Yoshida, deputy general manager of corporate communications at Mitsui Chemicals, observed that: 'In 2018, due to the full operation of new and expanded factories, supply and demand conditions are expected to ease, and the company expects the market to weaken.'
The diisocyanate price remained high in 2017, due to the delay in the operation of new and expanded factories, as well as some force majeure effects.
The supply of polyurethane raw materials is in short supply. Mitsui stated that it expects operating revenues to decline during the second half of 2017 to the first half of 2018. This is due to the large-scale regular maintenance of Osaka cracking furnaces and the maintenance of other products.
From 2016 to 2017, the company’s basic materials industry’s operating income increased slightly by 0.4%. In 2017, it reached 38.9 billion yen (US$ 354 million). Net sales increased by 72.1% in FY 2017 to 637.7 billion yen. .
Mitsui Chemicals was established 20 years ago. The goal of the company's long-term business plan is to achieve sales of 2 trillion yen in 2025 and operating income of 200 billion yen.