Risk of Soaring Resin Raw Material Prices

「The Company worked to mitigate the impact of soaring virgin-material prices by increasing the blending ratio of recycled materials, one of its unique strengths, thereby containing the increase in costs.」

「For polystyrene, our main raw material, procurement through the end of August 2026 is currently expected to be secured. However, our consolidated earnings forecast is undetermined because a reasonable estimate is difficult to calculate.」

「The main factors behind the decline included a ¥500 million impact from higher raw material prices and a ¥700 million increase in logistics costs. Results exceeded the plan by ¥1.746 billion. The main reasons were raw material prices coming in below the initial assumptions, improved productivity in the production division, and the containment of expense increases through rationalization measures.」

「Ordinary income was ¥18.451 billion, an increase of ¥1.670 billion year on year. The main factors behind the increase included a positive contribution of ¥7.120 billion from sales activities, reflecting the effect of price revisions and solid sales of lightweight and eco-friendly products. The main factors behind the decrease were a ¥3.3 billion impact from higher raw material prices, including the pass-through of higher utility costs by upstream manufacturers, a ¥1.170 billion increase in logistics costs, and a ¥1.080 billion increase in expenses.」

「The main factors behind the decline were a negative impact of ¥1.0 billion from higher raw material prices, a negative impact of ¥600 million from higher logistics costs, and a negative impact of ¥310 million from higher expenses due to the change in the timing of the Epico Fair.」

「Under these circumstances, as it became extremely difficult to absorb the increases through our own efforts, we announced a price revision of 15% or more for all manufactured products shipped from 1 July 2024.」

「This was due to the continued effect of the two product price revisions implemented by the end of the previous consolidated fiscal year, partly offset by slight increases in naphtha and benzene prices during the third-quarter consolidated accounting period and the partial acceptance of higher utility costs from upstream manufacturers in raw material purchase prices.」

「With regard to raw material prices, naphtha and benzene, which are basic raw materials for our products, are expected to rise further based on trends in crude oil prices, foreign exchange rates and other factors, and polystyrene prices are expected to remain elevated. Meanwhile, bale prices, which had temporarily surged, have stabilized, causing recycled PET raw material prices to decline, and electricity prices have peaked and are expected to remain below the initial forecast.」

「With regard to raw material prices, naphtha, a basic raw material for our products, is declining, while benzene prices remain high, and polystyrene prices are expected to remain elevated. Electricity prices are also expected to remain high.」

「With regard to raw material and electricity prices, naphtha prices, a basic raw material for our products, are declining, while electricity prices continue to rise beyond the initial forecast.」

「In response to higher raw material and electricity prices, we announced a “Request for Product Price Revisions” (second product price revision) in April 2022, and negotiations have been completed. During the six months ended the second quarter, the effect of the price revision was realized earlier than expected, and further contributions to profit are expected from the third quarter onward. As for raw material prices, naphtha prices, a basic raw material for our products, are beginning to stabilize after peaking in the second-quarter consolidated accounting period, while electricity prices are expected to rise further beyond the initial forecast.」

「With regard to raw materials, following successive increases in polystyrene prices from 2021, we announced a “Request for Product Price Revisions” (first product price revision) in October 2021, and had largely completed the revisions by the end of March 2022. However, due to the sharp rise in raw material prices against the backdrop of the situation involving Russia and Ukraine, the yen’s depreciation and higher electricity prices, we announced a second “Request for Product Price Revisions” (second product price revision) in April 2022.」

「Subsequently, crude oil prices surged sharply against the backdrop of the situation involving Russia and Ukraine, causing domestic naphtha and benzene prices to surge as well. In addition, the yen’s depreciation caused prices for raw materials overall to rise by significantly more than expected, while electricity charges for production equipment and other facilities have continued to surge to unprecedented levels in recent years. ... We announced a price revision of 15% or more for all manufactured products shipped from 1 June 2022.」

「Compared with the internal outlook at the time the revised plan announced on 29 October 2021 was prepared, operating income for the third quarter consolidated accounting period fell short by ¥430 million, while ordinary income fell short by ¥330 million. The main factors were higher recycled PET raw material prices, lower shipment volumes of general-purpose containers for fresh food, and higher electricity charges.」

「With regard to raw materials, prices for polystyrene, a major raw material for our group’s products, rose three times, in April, July and October 2021. Upstream raw materials such as naphtha and benzene have recently continued to surge in price, and further price increases are expected across raw materials, including polystyrene. ... As it has become extremely difficult to absorb the substantial surge in raw material prices through our own efforts, we announced on our website on 29 October 2021 that we would revise product prices.」

「With regard to raw materials, prices for polystyrene and PET, which are raw materials for our products, continued to rise in the first half of the fiscal year ending March 2022, and we will continue to closely monitor developments.」

「With regard to raw materials, polystyrene prices, a main raw material for our products, declined in the second quarter of the fiscal year ending March 2021. However, prices turned upward from the third quarter onward, and we will continue to closely monitor developments.」

「With regard to raw materials, polystyrene prices, a main raw material for our products, declined in the second quarter of the fiscal year ending March 2021. However, prices are expected to turn upward from the third quarter onward, and we will continue to closely monitor developments. In addition, from the third quarter onward, we expect selling prices for customers linked to naphtha prices to be affected.」

「With regard to raw materials, we expect prices for polystyrene and other materials, which are the main raw materials for our products, to decline from the second quarter of the fiscal year ending March 2021, and expect selling prices for customers linked to naphtha prices to be affected. However, crude oil and naphtha prices have recently turned upward, and we will continue to closely monitor developments.」

「If the prices of polystyrene resin, PET resin, polypropylene resin and other materials used in our products fluctuate sharply and substantially, this may affect the performance of our group. To address this risk, in addition to passing changes in raw material prices through to product prices, our group is limiting the impact of raw material price fluctuations by using recycled materials made from used containers and PET bottles.」

「Factors affecting profit changes included profit improvement from the impact of price revisions implemented in the previous consolidated fiscal year in response to higher raw material prices, as well as strong sales of our original and new products. This was offset by higher costs due to increases in personnel expenses, depreciation and logistics costs.」

「Factors affecting profit changes during the first quarter of the current consolidated fiscal year included profit improvement from the impact of price revisions implemented in the previous consolidated fiscal year and strong sales of our original and new products, while costs increased due to higher personnel expenses, depreciation and logistics costs.」

「In response to soaring raw material prices since the fourth quarter of the fiscal year ended March 2017, the company worked to improve efficiency across all divisions. With customers' understanding, the price revisions became fully effective during the current consolidated fiscal year.」

「During the first 9 months of the current consolidated fiscal year, sales of our original and new products remained strong, and the effects of the price revisions emerged, resulting in total profit improvement of approximately ¥3,780 million. Meanwhile, raw material costs increased by ¥2,380 million, and expenses increased due to higher logistics costs, depreciation, personnel expenses and electricity charges. However, group-wide efficiency improvements limited the increase in expenses to approximately ¥970 million, bringing the total increase in costs to approximately ¥3,350 million.」

「Against this backdrop, raw material prices for products manufactured by our group rose repeatedly, including imported PET resin due to anti-dumping duties on Chinese PET resin from September 2017 and polystyrene prices from January 2018. Auxiliary materials such as corrugated cardboard and plastic bags also became more expensive, while expenses including logistics costs, electricity charges and personnel expenses increased. Accordingly, we announced a revision of product prices for shipments from 1 April 2018. During the first six months of the current consolidated fiscal year, we pursued efficiency improvements across all group divisions and negotiated price increases in preparation for the product price revision. As a result, we obtained our customers' understanding and implemented the product price revision.」

「Against this backdrop, raw material prices for products manufactured by our group rose repeatedly, including imported PET resin due to anti-dumping duties on Chinese PET resin from September 2017 and polystyrene prices from January 2018. Auxiliary materials such as corrugated cardboard and plastic bags also became more expensive, while expenses including logistics costs, electricity charges and personnel expenses increased. Accordingly, we announced a revision of product prices for shipments from 1 April 2018. During the first quarter of the current consolidated fiscal year, we pursued efficiency improvements across all group divisions and negotiated price increases in preparation for the product price revision. Although the timing of the revision was delayed, we obtained our customers' understanding and implemented the price revision. We expect the improvement in profits from the product price revision to begin in the second quarter of the following consolidated accounting period.」

「Raw material prices continued to rise, including imported PET resin due to anti-dumping duties on Chinese PET resin from September 2017 and another increase in polystyrene prices from January 2018. Auxiliary materials such as corrugated cardboard and plastic bags also became more expensive, while expenses including logistics costs, electricity charges and personnel expenses rose further. Accordingly, we announced a revision of product prices for shipments from 1 April 2018.」

「In August 2017, the Ministry of Finance announced the provisional imposition of anti-dumping duties on PET resin from China used in PET bottles and other products for 4 months from September. In December of the same year, the ministry decided to formally impose anti-dumping duties for up to 5 years. The duty rate would be up to 53%. As a result, import sources began shifting to Asian countries other than China, and imported PET resin prices rose.」

「In August 2017, the Ministry of Finance announced the provisional imposition of anti-dumping duties on PET resin from China used in PET bottles and other products. The duty rate was up to 53%, and the provisional period was 4 months from September, with the possibility that anti-dumping duties could be imposed for up to 5 years by the end of the year. As a result, import sources began shifting to Asian countries other than China, and imported PET resin prices were expected to rise.」

「Against this backdrop, the prices of raw materials for products manufactured by our group rose repeatedly from the third quarter of the previous consolidated fiscal year onward (from 1 October 2016 to 31 March 2017), while expenses such as logistics costs, electricity charges and personnel expenses also increased. Accordingly, we announced a revision of product prices for shipments from 1 June 2017.」

「If the prices of polystyrene resin, PET resin, polypropylene resin and other materials used in our products rise sharply and substantially, this may affect the performance of our group.」

「Looking ahead, we expect the business environment surrounding our group to remain unpredictable, due to factors including consumer trends and increases or decreases in raw material costs and electricity charges resulting from fluctuations in foreign exchange rates and crude oil prices.」

「Looking ahead, we expect the business environment surrounding our group to remain unpredictable, due to factors including consumer trends and increases or decreases in raw material costs and electricity charges resulting from fluctuations in foreign exchange rates and crude oil prices.」

「If the prices of polystyrene resin, PET resin, polypropylene resin and other materials used in our products rise sharply and substantially, this may affect the performance of our group.」