Mitsui anticipates TDI demand-supply will move closer to balance outlook in 2018
PUWORLD–Tokyo – Japanese chemical company Mitsui Chemicals anticipates that the TDI demand-supply outlook will ease in 2018 compared to 2017.
In an internet investor briefing, the company said that in 2017 the market behaved positively.
‘In 2018, the demand-supply scenario expected to be relaxed due to full-fledged operation of new and expanded plants. We expect that the market conditions will weaken in association with this,’ observed Osamu Yoshida, deputy GM, corporate communications, Mitsui Chemicals.
Diisocyanate prices remained high in 2017. This was owing to delays in operation of new and expanded plants and effects of forces majeure.
Away from polyurethane raw materials, Mitsui said it expects operating income to decline between the second half of 2017 and the first half of 2018. This is due to large-scale regular maintenance of crackers at Osaka and maintenance of other products.
Operating income from the company’s Basic Material sector grew marginally by 0.4% between 2016 and 2017. It reached JPY 38.9bn ($354 m) in 2017. Net sales grew by 72.1% to JPY 637.7bn in FY 2017.
Mitsui Chemicals was established 20 years ago. It is aiming for targeting sales of JP¥ 2,000 bn and operating income of JPY 200 bn by 2025 in its Long-Term Business Plan.