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Mitsui Chemicals income decreased on lower output in April-September

November 13/2020

MOSCOW (MRC) -- Mitsui Chemicals' net income in the April to September period 2020 fell on the back of lower production amid poorer demand caused by the coronavirus pandemic, the producer said.

All business segments saw lower sales during the period as compared to the previous year, weighed by lower sales prices due to the fall in naphtha and other raw materials and fuel prices. 

Naphtha cracker operating rates were lower than the same period of the previous fiscal year due to decreased demand of downstream products, which was impacted by coronavirus.

The company's polypropylene (PP) was affected by slowing demand for automotive products.

"It is still unclear as to when the pandemic will be contained, and the impact on the groups performance is difficult to fully predict," the company said in a statement. "Depending on how the pandemic progresses, the group may possibly incur further losses from the third quarter onward," it added.

As MRC informed earlier, Mitsui Chemicals operated its naphtha cracker normally following a maintenance turnaround. Company resumed operations at the cracker on July 19, 2020. The cracker was shut for maintenance on June 11, 2020. Located in Osaka, Japan, the cracker has an ethylene capacity of 500,000 mt/year and a propylene capacity of 280,000 mt/year.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

Mitsui Chemicals is a leading manufacturer and supplier of value added specialty chemicals, plastics and materials for the automotive, healthcare, packaging, agricultural, building, and semiconductor and electronics markets. Mitsui Chemicals is a Japanese Chemicals company, a part of the Mitsui conglomerate. The company has a turnover of around 15 billion USD and has business interests in Japan, Europe, China, Southeast Asia and the USA. The company mainly deals in performance materials, petro and basic chemicals and functional polymeric materials.
Author:Anna Larionova
Tags:PP, PE, ethylene, propylene, Mitsui.
Category:General News
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