Declining Demand, Oversupply and Narrowing Spreads in the Chemicals and Resins Business
First written in FY2016. 11 of 31 entries say "Worsened", first in FY2020-Q1. Latest entry: 2026-05-11.
Ube moved to the "Worse" side of this theme in 2019.
0 other companies' latest entry also says "Worsened".
- 2026-05-11WorsenedRevisions to earnings forecasts
「売上高及び営業利益は、機能品セグメント、樹脂・化成品セグメントなど全てのセグメントにおいて、主要製品の需要が想定に届かないことなどから、前回予想を下回る見込みです。」
樹脂・化成品セグメントの売上高予想は2,570億円から2,512億円、営業利益予想は95億円から82億円へ下方修正され、需要回復の見通しが弱まりました。 - FY2026-H1Recovery in composites and deterioration in nylon and caprolactam occurred concurrentlyAnnual report
「The Composite business reported higher revenue, as sales volumes increased on the recovery in domestic automotive demand and following the acquisition in the third quarter of the previous fiscal year of a European manufacturer of mechanically recycled resin. The Nylon Polymer business reported lower revenue, as sales volumes declined and selling prices fell due to weak overseas demand for food packaging film applications and other uses. The Caprolactam and Ammonium Sulfate business reported lower revenue, as sales volumes declined and selling prices fell amid intensifying competition.」
The Composite business benefited from the recovery in domestic automotive demand and higher revenue from the acquisition of a European company, while weak demand, intensifying competition and declining volumes and prices continued in the Nylon Polymer and Caprolactam and Ammonium Sulfate businesses. - FY2025Recovery in demand and weakness in the Composite business coexistedAnnual report
「The Nylon Polymer business reported higher revenue, as sales volumes increased and selling prices rose following the recovery in overseas demand for food packaging film applications and other uses. The Composite business reported lower revenue, as sales remained weak in both automotive component applications and non-automotive component applications, including industrial equipment.」
While overseas demand recovered in the Nylon Polymer and Caprolactam businesses, sales remained weak in both automotive and non-automotive applications in the Composite business, with mitigation of some market risks coexisting with their continued presence. - FY2025-H1MitigatedAnnual report
「The Nylon Polymer business reported higher revenue, as sales volumes increased and selling prices rose following the recovery in overseas demand for food packaging film applications and other uses. The Caprolactam and Ammonium Sulfate business also reported higher revenue, as sales volumes increased overseas and selling prices rose due to higher raw material market prices.」
The recovery in overseas demand for food packaging film applications and other uses, together with higher sales volumes and prices for nylon polymer and caprolactam, partially mitigated the previously identified risks of declining demand and deteriorating market conditions. Meanwhile, demand for automotive applications in the Composite business remained weak. - FY2024WorsenedAnnual report
「The Nylon Polymer and Caprolactam businesses within the Basic Materials business continued to face difficult operating conditions.」
Despite signs of a partial recovery in demand indicated in the quarterly report, the annual report explicitly stated that difficult operating conditions continued in the Nylon Polymer and Caprolactam businesses. - FY2024-Q3Recovery in overseas demand and lower revenue coexistedAnnual report
「The Nylon Polymer business reported lower revenue, as sales volumes declined despite overseas demand for food packaging film applications and other uses showing signs of recovery, with the impact of lower sales volumes in the first half being significant.」
While overseas demand showed signs of recovery, the impact of lower sales volumes in the first half was significant, and the Nylon Polymer business reported lower revenue. - FY2024-Q2RestatedAnnual report
「Overall, the Resins and Chemicals segment reported lower revenue and lower profit. Although the ammonia plant did not undergo its scheduled biennial maintenance, the impact of lower sales volumes and selling prices for nylon polymer and caprolactam due to declining demand and other factors was significant.」
Despite the absence of scheduled maintenance at the ammonia plant, lower sales volumes and selling prices due to declining demand continued to weigh on segment revenue and profit. - FY2024-Q1WorsenedAnnual report
「The Nylon Polymer business reported lower revenue, as demand for food packaging film applications and other uses declined and selling prices also fell due to lower market prices for the raw material caprolactam.」
In addition to declining demand for food packaging film applications and other uses, selling prices fell due to lower caprolactam market prices, with market risks emerging on both the demand and price fronts. - FY2023WorsenedAnnual report
「Recently, demand for food packaging film in Europe slowed as high prices persisted, while demand for exterior films for consumer LiB applications declined due to semiconductor shortages and other factors. Price competition with Chinese products for general-purpose grades is intensifying in global markets.」
In addition to slowing and declining demand, intensified price competition with Chinese products in global markets was noted, and market risks remained in the Chemicals and Resins business. - FY2023-Q2Reduced automotive production, slowing demand and higher selling prices coexistedAnnual report
「The Composite business reported higher revenue, as selling prices rose due to higher market prices for the raw material caprolactam, despite the impact of reduced automotive production. The Nylon Polymer business reported higher revenue, as selling prices rose due to higher caprolactam market prices, despite demand for food packaging film applications and other uses showing signs of slowing.」
While reduced automotive production and slowing demand for food packaging film applications and other uses put downward pressure on volumes, the Composite and Nylon Polymer businesses reported higher revenue due to higher selling prices accompanying higher caprolactam market prices. - FY2023-Q1Reduced automotive production and higher selling prices coexistedAnnual report
「The Composite business reported higher revenue, as selling prices rose due to higher market prices for the raw material caprolactam, despite the impact of reduced automotive production. The Nylon Polymer business reported higher revenue, as selling prices rose due to higher caprolactam market prices and demand for food packaging film applications and other uses remained firm.」
Downward pressure on volumes from reduced automotive production coexisted with higher selling prices accompanying higher caprolactam market prices and firm demand for food packaging film applications. - FY2022-Q2RestatedAnnual report
「The Lactam business reported higher revenue as selling prices rose amid higher raw material market prices, including benzene, while demand, including for textile applications, remained firm. The Nylon business also reported higher revenue, as selling prices rose due to higher lactam market prices and sales volumes increased on the recovery in demand, including from the automotive sector.」
In the Lactam and Nylon businesses, the recovery in demand, increase in sales volumes and rise in selling prices continued, reaffirming that the impact of the previously identified risks of declining demand and deteriorating market conditions remained contained. - FY2022-Q1MitigatedAnnual report
「The Lactam business reported higher revenue as sales volumes increased on firm demand and selling prices rose amid higher raw material market prices, including benzene. The Nylon business also reported higher revenue, as selling prices rose due to higher lactam market prices and sales volumes increased on the recovery in demand, including from the automotive sector.」
In the Lactam and Nylon businesses, demand recovered, sales volumes increased and selling prices rose, partially mitigating the impact of the previously identified risks of declining demand and deteriorating market conditions. - FY2021WorsenedAnnual report
「Selling prices fell more sharply than the deterioration in market conditions for caprolactam, the raw material.」
In nylon resin and other products, the decline in product selling prices exceeded the deterioration in raw material market conditions, and the risks of narrowing spreads and deteriorating market conditions emerged in the full-year results. - FY2021-Q3WorsenedAnnual report
「The Lactam business posted lower revenue as selling prices declined due to lower market prices for benzene and other raw materials amid the impact of COVID-19 and other factors. The Nylon business also posted lower revenue as selling prices declined in line with lower lactam market prices, amid weaker demand for automobiles and other applications due in part to the impact of COVID-19.」
Declining market conditions and selling prices for lactam and nylon, together with weaker automobile-related demand due to COVID-19, continued to reduce revenue. - FY2021-Q2WorsenedAnnual report
「The Lactam business posted lower revenue as selling prices declined due to lower market prices for benzene and other raw materials amid the impact of COVID-19 and other factors. The Nylon business posted lower revenue as selling prices declined in line with lower lactam market prices, amid weaker demand for automobiles and other applications due in part to the impact of COVID-19.」
In addition to slowing demand and deteriorating market conditions in China and elsewhere, the impact of COVID-19 continued to appear as lower selling prices and weaker demand for lactam and nylon, worsening market risk in the Chemicals and Resins business. - FY2021-Q1WorsenedAnnual report
「The Lactam business posted lower revenue as market prices for crude oil, benzene and other products declined due to the impact of COVID-19 and other factors, resulting in lower selling prices. The Nylon business also posted lower revenue as selling prices declined in line with lower lactam market prices and sales volumes remained sluggish amid weaker demand for automobiles and other applications due to the impact of COVID-19.」
Declining market conditions, lower selling prices and weaker demand occurred simultaneously in lactam and nylon, worsening the previously identified market risk in the Chemicals and Resins business. - FY2020-Q3WorsenedAnnual report
「The Lactam business posted lower revenue as selling prices and sales volumes declined amid slowing growth in the Chinese and other markets. The Nylon business also posted lower revenue, affected by easing supply and demand conditions due to slowing growth in the Chinese and other markets, in addition to the impact of lower lactam prices.」
Slowing growth in the Chinese and other markets reduced lactam selling prices and volumes and also led to easing supply and demand conditions in nylon. Market risk in the Chemicals and Resins business worsened further from the previous quarter. - FY2020-Q2WorsenedAnnual report
「The Lactam business posted lower revenue as selling prices and sales volumes declined amid slowing demand in the Chinese market. The Nylon business also posted lower revenue as sales volumes declined, mainly due to weaker demand in the Chinese market, in addition to the impact of lower lactam prices.」
Slowing and weakening demand in the Chinese market emerged as lower lactam selling prices and volumes and lower nylon sales volumes, further worsening market risk in the Chemicals and Resins business. - FY2020-Q1WorsenedAnnual report
「The Lactam business posted lower revenue as selling prices and sales volumes declined amid slowing demand in the Chinese market. The Nylon business also posted lower revenue as sales volumes declined, mainly due to weaker demand in the Chinese market, in addition to the impact of lower lactam prices.」
Slowing and weakening demand in the Chinese market emerged as lower selling prices and sales volumes for lactam and nylon, worsening market risk in the Chemicals and Resins business. - FY2019-Q3RestatedAnnual report
「The Lactam business posted higher revenue as selling prices were adjusted upward, particularly in the Chinese market. Sales volumes in the Synthetic Rubber business increased, particularly for tire applications, but revenue rose while profit declined due in part to falling product prices amid higher raw material prices.」
While price adjustments continued in the Lactam business, product prices fell in the Synthetic Rubber business amid higher raw material prices, reconfirming the coexistence of improving and deteriorating market conditions across the two businesses. - FY2019-Q2Improvement in lactam and deterioration in synthetic rubber occurred concurrentlyAnnual report
「The Lactam business posted higher revenue as selling prices were adjusted upward, particularly in the Chinese market. Shipments in the Synthetic Rubber business remained generally firm, particularly for tire applications, but revenue and profit declined due in part to falling product prices amid higher raw material prices.」
In the Lactam business, selling prices were adjusted upward, particularly in the Chinese market, partially mitigating the previously identified risk of deteriorating market conditions. In the Synthetic Rubber business, product market conditions softened amid higher raw material prices, and deterioration emerged. - FY2019-Q1Improving and deteriorating market conditions occurred concurrentlyAnnual report
「The Lactam business posted higher revenue as selling prices were adjusted upward, particularly in the Chinese market. Shipments in the Synthetic Rubber business remained generally firm, particularly for tire applications, but revenue and profit declined due in part to softer product market conditions.」
In the Lactam business, selling prices were adjusted upward, particularly in the Chinese market, partially mitigating the previously identified risk of deteriorating market conditions. In the Synthetic Rubber business, softer product market conditions reduced revenue and profit. - FY2018MitigatedAnnual report
「For caprolactam, a nylon raw material, supply and demand conditions remained firm, partly due to environmental regulations and other factors in China, and market conditions continued to recover.」
In contrast to the previous concern over excess supply in China, supply and demand conditions strengthened against the backdrop of environmental regulations and other factors, and market conditions continued to recover. - FY2018-Q3RestatedAnnual report
「The Lactam business posted higher revenue as prices continued to be adjusted upward despite excess production capacity in the Chinese market.」
Although excess production capacity continued in the Chinese market, the situation in which price adjustments led to higher revenue in the Lactam business was reconfirmed. - FY2018-Q2MitigatedAnnual report
「The Lactam business posted higher revenue as prices were adjusted upward despite continued excess production capacity in the Chinese market.」
Although excess production capacity continued in the Chinese market, price adjustments led to higher revenue in the Lactam business, and partial mitigation of the risk of deteriorating market conditions continued. - FY2018-Q1MitigatedAnnual report
「The Lactam business posted higher revenue as prices were adjusted upward despite continued excess supply in the Chinese market.」
Although excess supply continued in the Chinese market, prices were reportedly adjusted upward, indicating partial mitigation of the previously identified risk of deteriorating market conditions. - FY2017-Q3MitigatedAnnual report
「For caprolactam, a nylon raw material, excess supply in China continued, but market conditions showed signs of recovery, while lower prices for ancillary materials such as ammonia also contributed overseas.」
Although excess supply in China continued, caprolactam market conditions were described as recovering, indicating partial mitigation of the risk. - FY2017-Q2MaterialisedAnnual report
「For caprolactam, a nylon raw material, lower prices for ancillary materials such as ammonia contributed overseas, but excess supply in China continued and market conditions remained sluggish despite showing signs of recovery.」
Excess supply in China and sluggish market conditions continued to affect earnings in the Chemicals segment. The company also noted signs of recovery in market conditions. - FY2017-Q1MaterialisedAnnual report
「Excess supply in China continued, and market conditions remained sluggish.」
Excess supply in China and sluggish market conditions materially affected the Chemicals segment's performance, resulting in an operating loss for the segment. - FY2016First statedAnnual report
「If supply and demand conditions deteriorate due to increased supply resulting from production capacity expansions by competitors and product inflows from other regions, leading to depressed product market conditions or a significant narrowing of spreads, defined as the price difference between products and raw materials, the Group's performance and financial condition may be adversely affected.」
Dependence on demand and supply and demand conditions in Japan, Asia and Europe was identified as a risk.