Kuraray has decided to raise the price of PARAPET, a PMMA (methacrylic resin) molding material, by ¥40 per kilogram in Japan and US$450 per ton for export, commencing with shipments from July 15, 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 MMA (methyl methacrylate) monomer, the main ingredient of PMMA molding materials, is expanding in Asia.
Kuraray revised the price of PARAPET from April 1, 2008 shipments. However, the escalating raw material and fuel prices, caused by ever-increasing crude oil and naphtha prices in recent years, have nullified the effect of that price revision as well as the scope of the Company's cost reduction efforts. Furthermore, various expenses including distribution costs have all been rising, casting a shadow over earnings from PMMA molding materials.
In light of such circumstances, Kuraray decided to implement price revisions to maintain a stable supply and to improve profitability in this business. Details of the price revision are as follows.