The prices of Kuraray's polymethylmethacrylate (PMMA) resin molding material, methylmethacrylate (MMA) monomer, and methacrylic acid (MAA) will increase by ¥25 per kilogram in Japan for shipments commencing October 21, 2005.
PMMA molding material is an optical material used to make light guides for LCDs and a material for auto parts. Strong demand has resulted in a tight supply-and-demand balance in Japan and the rest of Asia.
In addition, sales of MMA monomers are expected to increase in Asia, spurred by the strong demand for PMMA molding material.
As with PMMA molding material and MMA monomers, the market in Japan and the rest of Asia continues to remain tight for MAA, which is used to make coatings and adhesives.
Furthermore, the price of naphtha is rising sharply, reflecting the dramatic increase in crude oil prices. As a result, the prices of mainstay materials such as acetone, methanol, and other important materials continued to climb. Given these conditions, domestic and overseas operating revenues from the PMMA molding material, MMA monomer, and MAA businesses have deteriorated rapidly.
In view of these circumstances, and in an effort to maintain the stability of supply and avoid financial losses, Kuraray has implemented price adjustments outlined as follows: