July 10, 2008
Kuraray Co., Ltd.
Kuraray announces the decision to increase the prices of both methyl methacrylate (MMA) monomer and methyl acetoacetate (MAA) by ¥40 per kilogram in Japan for shipments commencing July 15, 2008.
There has been flourishing demand for MMA monomer and optical applications for PMMA in particular. Consequently, there is a tight balance between supply and demand.
As with MMA monomers, supplies of MAA, which is used to make esters, coatings and adhesives, remain tight amid strong demand in Japan and the rest of Asia.
Kuraray revised the price of MMA monomer and MAA from March 10, 2008 shipments. However, the escalating prices of mainstay materials such as acetone and auxiliary materials 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 utilities and distribution costs, have all been rising, casting a shadow over earnings from MMA monomer and MAA both in Japan and overseas.
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 revisions are as follows.