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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 group’s 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. |
