Risk of weak product demand due to economic cycles

「In the chemical industry, sales of products for the semiconductor market remained firm as semiconductor market conditions recovered. However, difficult conditions continued as the impact of production in China exceeding domestic demand, together with the resulting increase in exports, persisted, particularly for petrochemical products.」

「半導体市況の回復に伴い、半導体市場向け製品の販売は堅調である一方、石油化学製品を中心に、中国の同国内の需要を上回る生産とそれに伴う輸出拡大の影響が長期化し、厳しい状況が続きました。」

「In the chemical industry, sales of products for the semiconductor market remained firm as semiconductor market conditions recovered. However, difficult conditions continue as the impact of the weak Chinese economy has persisted, particularly for petrochemical products, and the operating rate of ethylene production facilities remains low.」

「In the chemical industry, there were positive factors, including the semiconductor market bottoming out and sales of products for the semiconductor market moving onto a recovery trend. However, difficult conditions continue as the impact of the weak Chinese economy has persisted, particularly for petrochemical products.」

「In the chemical industry, difficult conditions continued as the global slowdown in demand, particularly the deterioration in supply and demand caused by the weak Chinese economy, became a negative factor.」

「In the chemical industry, difficult conditions continued as the global slowdown in demand and rising crude oil prices from the middle of the year became negative factors. ... Net sales for the six months ended the second quarter at our group declined by ¥2,574 million year on year to ¥24,941 million, due to weak demand, including for overseas automotive-related products and electronic information materials, as well as reduced production of petroleum resins due to raw material shortages.」

「Net sales for the nine months ended the first quarter at our group declined by ¥465 million, or 3.6%, year on year to ¥12,627 million, due to weak demand, mainly for overseas automotive-related products and electronic information materials, as well as reduced production of petroleum resins caused by shortages of raw materials.」

「In the chemical industry, demand for petrochemical products has slowed globally, including in China and Europe. In addition, higher and persistently elevated raw material prices and utility costs have created a difficult operating environment and are weighing on business performance.」

「Demand for resins used in automobiles and home appliances declined due to the impact of lockdowns in China, power restrictions caused by extreme heat, the global semiconductor shortage and a downturn in demand caused by high prices. As a result, the operating rate of ethylene production facilities fell below the 90% benchmark.」

「In the chemical industry, sales of products for the semiconductor market remained firm. However, demand for resins used in automobiles and home appliances declined due in part to the impact of China's zero-COVID policy. As a result, the operating rate of ethylene production facilities fell below the 90% benchmark for the first time in 2 years in May and remained below 90% for the second consecutive month in June.」

「Demand recovered across a broad range of fields at our group, while selling prices also increased in line with higher raw material prices. As a result, net sales for the fiscal year increased by ¥9,237 million, or 22.7%, year on year to ¥49,887 million.」

「Under these operating conditions, demand recovered across a broad range of fields at our group, and net sales for the nine months ended the third quarter increased by ¥7,170 million, or 24.3%, year on year to ¥36,645 million.」

「In the chemical industry, product demand is on a recovery trend, supported by the global recovery in automobile production and strong semiconductor market conditions. However, in addition to the concerns noted above, crude oil prices continue to rise, raising concerns about an adverse impact on earnings from higher raw material procurement costs.」

「In the chemical industry, product demand was recovering on the back of a recovery in global automobile production and buoyant semiconductor markets, but concerns arose over an adverse impact on earnings from higher raw material procurement costs as crude oil prices continued to rise. ... Demand recovered across a wide range of fields, resulting in sales of ¥11,471 million, up ¥2,361 million, or 25.9%, year on year.」

「During the cumulative third quarter of the current consolidated fiscal year, the Japanese economy deteriorated rapidly in the first quarter as the spread of the novel coronavirus caused domestic and overseas economic activity to stagnate, but subsequently showed gradual signs of recovery as socioeconomic activity resumed. However, the end of the novel coronavirus pandemic remained unforeseeable, and there were concerns that the reissuance of a state of emergency at the beginning of the year due to a rapid winter increase in infections could instead put the brakes on the economic recovery. Uncertain and severe conditions were expected to continue for the time being.」

「Although signs of a recovery have recently emerged, concerns remain over a prolonged slump in personal consumption due to rising unemployment and worsening income conditions, as well as a decline in capital investment due to deteriorating corporate performance, while the spread of the novel coronavirus remains unresolved. Severe conditions are expected to continue for the time being. The second quarter showed signs of recovery compared with the first quarter, but remained sluggish compared with the same period of the previous year. As a result, sales for the cumulative second quarter of the current consolidated fiscal year fell substantially to ¥18,883 million, down ¥2,089 million, or 10.0%, year on year.」

「In the chemical industry, the operating environment deteriorated further as the impact of the novel coronavirus compounded the decline in demand caused by US-China trade friction. ... Against these severe operating conditions, the group’s net sales for the cumulative first quarter of the current consolidated fiscal year fell across a wide range of fields, including products for the automotive market, to ¥9,109 million, down ¥1,084 million, or 10.6%, year on year, representing a substantial decline in sales.」

「Entering 2020, after the novel coronavirus spread rapidly in China and then across the world, the economy faced severe conditions, with a significant downward impact. In the chemical industry, the operating environment also became severe as overall demand slowed due to the deceleration of overseas economies and the global supply-demand balance deteriorated as inexpensive shale-gas-based products, whose production had entered full swing in the United States, flowed into the market. In addition, demand declined further after the spread of the novel coronavirus, and its negative impact was expected to continue for the time being.」

「During the cumulative third quarter of the current consolidated fiscal year, personal consumption and corporate capital investment in Japan remained firm, but production activity in the manufacturing sector stalled against a backdrop of weak external demand, and signs of economic stagnation intensified. In the chemical industry, overall demand also slowed as overseas economies decelerated.」

「During the cumulative second quarter of the current consolidated fiscal year, personal consumption and corporate capital investment in Japan remained firm, but production activity in the manufacturing sector stalled against a backdrop of weak external demand, and signs of economic stagnation intensified. In the chemical industry, overall demand slowed as overseas economies decelerated, while the global supply-demand balance eased and international market conditions tended to weaken as production of shale-gas-based chemical products from newly built and expanded plants in the United States moved into full swing.」

「In the chemical industry, demand for products, which had remained relatively firm, generally slowed due to the effects of the economic slowdown in China and other factors.」

「Concerns remain over the impact of developments in trade issues on the global economy and the outlook for the Chinese economy, and uncertain conditions are expected to continue.」

「During the cumulative third quarter of the current consolidated fiscal year, the Japanese economy continued on a moderate recovery trend. Although export growth stalled as the growth in electronic components slowed due to the effects of natural disasters and a pause in smartphone demand, capital investment increased, reflecting solid corporate performance, while personal consumption remained firm against a backdrop of improving employment and income conditions.」

「In the chemical industry, demand for petrochemical products remained firm in Japan and overseas, and domestic ethylene plants continued to operate at high rates, so relatively favorable conditions continued, although」

「In the chemical industry, favorable conditions continued, with demand for petrochemical products remaining firm in Japan and overseas and domestic ethylene plants continuing to operate at high rates.」

「In the chemical industry, favorable conditions continued, with crude oil prices remaining stable at low levels and demand for petrochemical products remaining firm both in Japan and overseas. Against this operating backdrop, the group’s net sales for the cumulative second quarter of the current consolidated fiscal year increased across a wide range of fields, led by the toiletries surfactants field in the Surfactants segment, to ¥21,344 million, up ¥2,890 million, or 15.7%, year on year.」

「In the chemical industry, demand for petrochemical products remained firm against a backdrop of stable low crude oil prices, and production facilities for ethylene and other products continued to operate at high rates. Against this operating backdrop, the group’s net sales for the cumulative first quarter of the current consolidated fiscal year increased across a wide range of fields, led by the toiletries surfactants field in the Surfactants segment, to ¥10,530 million, up ¥1,215 million, or 13.0%, year on year.」

「Sales of civil engineering and construction chemicals declined as weak demand for concrete-related chemicals continued. Sales of pesticide additives also declined, affected by lower overseas demand.」

「Sales of civil engineering and construction chemicals declined as weak demand for concrete-related chemicals continued. Sales of pesticide additives fell substantially as overseas demand declined.」

「Sales of civil engineering and construction chemicals declined as weak demand for concrete-related chemicals continued. As a result, segment sales were ¥9,909 million, down ¥379 million, or 3.7%, year on year.」

「The group’s products are used as intermediates in a wide range of fields. However, if demand in the industries serving the group’s major product fields declines, the group’s operating results and financial position may be affected.」