Kuraray has decided to raise the price of PARAPET, a polymethyl methacrylate (PMMA, methacrylic resin) molding material, by ¥25 per kilogram for shipments in Japan and by US$250 per ton for export shipments, commencing with shipments from April 1, 2008.
PMMA molding materials are in strong demand for use in optical materials for LCD light guides, as well as for applications in automobiles. Consequently, there is a tight balance between supply and demand for such materials in Japan and the rest of Asia.
Furthermore, demand for methyl methacrylate (MMA) monomer, the primary raw material for PMMA, is expanding in Asia, resulting in a tight supply-demand balance.
At the same time, crude oil and naphtha prices are still rising, and accordingly, the prices of raw materials and fuels remain on upward trends. As a result, earnings and profits in Kuraray's PMMA molding material business are deteriorating sharply.
In light of these circumstances, Kuraray decided to implement an upward revision in the product price to ensure a stable supply and to improve the profitability of this business. Details of the price revision are as follows.