Petrochemical Feedstock Costs, Demand Volatility and Intensifying Competition
First written in FY2017. 11 of 33 entries say "Mitigated", first in FY2022-Q1. Latest entry: 2026-08-07.
0 other companies' latest entry also says "Mitigated".
- FY2026MaterialisedAnnual report
「In the Basic Chemicals segment, sales were ¥587.2 billion, down 2.4% from the previous fiscal year, and segment profit was a loss of ¥8.0 billion, down ¥30.0 billion, owing mainly to deteriorating product market conditions and lower volumes associated with scheduled maintenance and production equipment trouble.” “Segment profit was a loss of ¥7.7 billion, down ¥11.2 billion year on year, owing mainly to deteriorating product margins.」
Risks including oversupply, particularly from China, materialized as low product margins and an annual loss in the Basic Chemicals segment. - 2026-05-12MitigatedEarnings
「セグメント損益は３月のナフサ価格の急騰に伴うプラスのタイムラグ影響があったものの、製品マージンが低水準で推移したことなどにより、△68億円（前期比＋11億円）となりました。」
基礎化学品の損失は前年度の80億円から68億円へ縮小したが、製品マージンは低水準と記載されている。 - FY2026-H1MaterialisedAnnual report
「Segment profit was a loss of ¥7.7 billion, down ¥11.2 billion year on year, owing mainly to deteriorating product margins.」
Deteriorating product margins in Basic Chemicals materialized in the actual results as a ¥7.7 billion segment loss. - FY2025MaterialisedAnnual report
「In the Basic Chemicals segment, sales were ¥587.2 billion, down 2.4% from the previous fiscal year, and segment profit was a loss of ¥8.0 billion, down ¥30.0 billion, owing mainly to deteriorating product market conditions and lower volumes associated with scheduled maintenance and production equipment trouble.」
Deteriorating market conditions, lower volumes, equipment trouble, and other factors in Basic Chemicals materialized as a segment loss in the fiscal-year results. - FY2024MitigatedAnnual report
「Segment profit was ¥22.0 billion (up 119.0% from the previous fiscal year), due to the rebound from scheduled maintenance carried out in the previous fiscal year, increased production volumes following the start-up of the paraxylene production unit at the Aichi Plant, and improved product margins, among other factors.」
Improved Basic Chemicals product margins and higher production volumes improved segment results from the previous fiscal year. - FY2024-Q3MitigatedAnnual report
「Sales in the Basic Chemicals segment were ¥446.6 billion, down 13.1% year on year. Segment profit was ¥21.4 billion, up 87.3%, owing mainly to improved product margins and lower fuel costs for in-house power generation.」
Although conditions in which fluctuations in petrochemical product margins affect results continue, segment results improved from the same period of the previous year due to improved product margins and other factors. - FY2024-Q2MaterialisedAnnual report
「Sales in the Basic Chemicals segment were ¥280.2 billion, down 22.8% year on year, owing mainly to lower sales volumes resulting from scheduled maintenance. Segment profit was ¥12.0 billion, down 15.3% year on year, owing mainly to lower sales volumes and higher expenses.」
In Basic Chemicals, revenue and segment results fell below the same period of the previous year due to lower sales volumes and higher expenses, indicating that fluctuations in demand, supply, and costs had affected results. - FY2024-Q1MaterialisedAnnual report
「Revenue in the Basic Chemicals segment was ¥126.6 billion (down 32.5% year on year), mainly due to lower naphtha prices and reduced sales volumes. Segment loss was ¥1.4 billion, compared with a year-on-year decline of ¥9.5 billion, mainly due to lower sales volumes caused by scheduled maintenance and higher expenses.」
The Basic Chemicals segment swung to a loss due to lower sales volumes, scheduled maintenance, and higher expenses, indicating that feedstock prices, demand fluctuations, and other factors had affected results. - FY2023WorsenedAnnual report
「In recent years, the number of large new plants manufacturing basic chemicals has increased sharply, particularly in China, creating the possibility of oversupply in Asian markets and sluggish demand as economic growth slows in emerging markets. Intensifying competition and weak demand in these markets may affect the financial condition and operating profit of the Group.」
The competition and demand risks facing Basic Chemicals were specified in terms of the possibility of oversupply resulting from a sharp increase in large new plants, particularly in China, and sluggish demand. - FY2023-Q3MitigatedAnnual report
「Segment profit was ¥11.4 billion, up 49.5% year on year, owing mainly to improved product margins, including for para-xylene.」
Improved product margins increased Basic Chemicals segment profit, and the impact of naphtha prices, demand, and the competitive environment eased during the quarter. - FY2023-Q1MitigatedAnnual report
「Segment profit was ¥8.1 billion (up 20.6% year on year), mainly due to improved product margins, particularly for mixed xylene.」
Improved product margins in Basic Chemicals increased segment profit from ¥6.7 billion in the same period of the previous year to ¥8.1 billion, and the impact of prices, demand, and the competitive environment moved in a favorable direction. - FY2022MitigatedAnnual report
「Segment profit was ¥8.2 billion (up 140.2% from the previous fiscal year), mainly due to the recovery in styrene monomer margins.」
The recovery in product margins improved Basic Chemicals segment results, and the impact of feedstock prices, demand, and the competitive environment eased during the fiscal year. - FY2022-Q3MitigatedAnnual report
「Segment profit was ¥7.6 billion (up ¥8.6 billion year on year), mainly due to improved product margins, particularly for styrene monomer.」
Improved product margins lifted Basic Chemicals segment results from a ¥1.0 billion loss in the same period of the previous year to a ¥7.6 billion profit. The impact of margin fluctuations arising from naphtha prices, demand, and the competitive environment eased during the quarter. - FY2022-Q2MitigatedAnnual report
「Segment profit was ¥10.9 billion (up ¥13.0 billion year on year), mainly due to improved product margins, particularly for styrene monomer.」
Improved product margins lifted Basic Chemicals segment results from a loss in the same period of the previous year to a ¥10.9 billion profit, and the impact of risks related to prices, demand, and the competitive environment eased during the quarter. - FY2022-Q1MitigatedAnnual report
「Segment profit was ¥6.7 billion (up ¥6.6 billion year on year), mainly due to improved margins on products including styrene monomer.」
Improved product margins lifted segment results from ¥100 million in the same period of the previous year to ¥6.7 billion. Margin fluctuation risks arising from price pass-through, demand, and the competitive environment moved in a favorable direction during the quarter. - FY2021MaterialisedAnnual report
「Segment profit was ¥3.4 billion (down 71.5% from the previous fiscal year), mainly due to narrower margins on products including paraxylene.」
Narrower product margins in Basic Chemicals actually affected results, with segment profit declining 71.5% year on year. - FY2021-Q3MaterialisedAnnual report
「Segment loss was ¥1.0 billion, compared with a year-on-year decrease of ¥19.0 billion, mainly due to narrower margins on products including styrene monomer and paraxylene.」
Narrower petrochemical product margins caused the Basic Chemicals segment to swing from a profit in the same period of the previous year to a ¥1.0 billion loss. Risks related to feedstock prices, supply and demand, and the competitive environment are affecting results. - FY2021-Q2MaterialisedAnnual report
「Segment loss was ¥2.0 billion, compared with a year-on-year decrease of ¥16.3 billion, mainly due to narrower margins on products including styrene monomer and paraxylene.」
Narrower product margins in Basic Chemicals caused segment results to swing from a profit in the same period of the previous year to a ¥2.0 billion loss. - FY2021-Q1MaterialisedAnnual report
「Segment profit was ¥100 million (down 97.6% year on year), mainly due to narrower margins on products including styrene monomer.」
Narrower petrochemical product margins were a factor in the 97.6% year-on-year decline in Basic Chemicals segment profit, indicating that risks related to feedstock prices, supply and demand, and the competitive environment had affected results. - FY2020MaterialisedAnnual report
「Revenue in the Basic Chemicals segment was ¥459.2 billion, broadly in line with the previous year (down 2.0% from the previous fiscal year). Segment profit, comprising operating profit plus equity in earnings of affiliates, was ¥11.9 billion (down 62.5% from the previous fiscal year), mainly due to narrower margins on products including styrene monomer.」
Narrower product margins were a factor in the 62.5% year-on-year decline in Basic Chemicals segment profit, indicating that feedstock price, supply-demand, and competitive risks had affected results. - FY2020-Q3RestatedAnnual report
「Naphtha prices, a petrochemical feedstock, fell by $118 per tonne year on year to $534 per tonne.」
Naphtha price fluctuations continued, and lower earnings due to narrower product margins were also reported for basic chemicals. There was no material change in the risks themselves related to passing through naphtha prices, demand fluctuations, increased supply, or intensifying competition. - FY2020-Q2RestatedAnnual report
「Naphtha prices, a petrochemical feedstock, fell by $104 per tonne year on year to $540 per tonne.」
Naphtha prices fell year on year. No material change in the risks themselves related to price pass-through, demand fluctuations, increased supply, or intensifying competition has been indicated. - FY2020-Q1RestatedAnnual report
「Naphtha prices, a petrochemical feedstock, fell by $53 per tonne year on year to $566 per tonne.」
Naphtha prices fell by $53 per tonne year on year, and fluctuations in feedstock prices continue to affect the petrochemical business. No material change in the risks themselves related to price pass-through, demand fluctuations, or the competitive environment has been indicated. - FY2019-Q3RestatedAnnual report
「Demand for petrochemical products remained firm, particularly in Asia. Naphtha prices, a petrochemical feedstock, rose by $163 per tonne year on year to $652 per tonne.」
Conditions for petrochemical demand in Asia and naphtha prices were updated, but there was no material change in the risks themselves related to the inability to pass through price increases, demand fluctuations, increased supply, or intensifying competition. - FY2019-Q2RestatedAnnual report
「Demand for petrochemical products maintained high operating rates against a backdrop of strong demand in Asia. Naphtha prices, a petrochemical feedstock, rose by $180 per tonne year on year to $645 per tonne.」
While petrochemical demand in Asia was strong, naphtha prices rose, and no material change in the risks related to feedstock prices, demand, or the competitive environment has been indicated. - FY2019-Q1RestatedAnnual report
「Petrochemical products maintained high operating rates against a backdrop of strong demand in Asia. Naphtha prices, a petrochemical feedstock, rose by $137 per tonne year on year to $619 per tonne.」
While petrochemical demand in Asia was strong, naphtha prices rose, and no material change in the risks related to feedstock prices, demand, or the competitive environment has been indicated. - FY2018RestatedAnnual report
「If fluctuations in naphtha prices cannot be appropriately passed through to petrochemical product prices due to factors including intense market competition, the financial condition and operating results of the Group may be affected.」
The inability to pass through naphtha price increases, intensifying competition in Asia, and fluctuations in demand and supply remain risks. - FY2018-Q3RestatedAnnual report
「Demand for petrochemical products remained firm, particularly in Asia. Naphtha prices, a petrochemical feedstock cost, rose by $74 per tonne year on year to $489 per tonne.」
Petrochemical demand remained firm and naphtha prices rose, but no material change in the risks themselves relating to price pass-through, demand volatility, increased supply or intensifying competition was disclosed. - FY2018-Q2RestatedAnnual report
「Demand for petrochemical products remained firm, particularly in Asia. Naphtha prices, a petrochemical feedstock cost, rose by $61 per tonne year on year to $465 per tonne.」
Petrochemical demand and naphtha prices were updated, but no material change in the risks themselves relating to passing through naphtha prices, demand volatility, increased supply or intensifying competition was disclosed. - FY2018-Q1RestatedAnnual report
「Demand for petrochemical products was roughly at the previous year's level. Naphtha prices, a petrochemical feedstock cost, rose by $86 per tonne year on year to $482 per tonne.」
Petrochemical demand was roughly at the previous year's level, while naphtha prices rose. No material change in the risks themselves relating to price pass-through or the competitive environment was disclosed. - FY2017First statedAnnual report
「If fluctuations in naphtha prices cannot be appropriately passed through to petrochemical product prices due to intense competition in the market or other factors, the Group's financial position and operating results may be affected. In addition, petrochemical markets in Asia, including Japan, are highly competitive and are affected by changes in demand and increases in supply.」
The risks of being unable to pass changes in naphtha prices through to product prices and of changes in petrochemical demand, supply and the competitive environment in Asia are disclosed.