OPEC's production cuts raise prices of Japanese chemical products

Publisher: China Chemical News Time: 2020-01-06

Three Japanese chemical companies, Japan Polypropylene Co., Japan Polyethylene Co., and Preman Polymers, have recently announced that their products will start to increase prices by 2020, with prices ranging from 12 to 15 yen per kilogram.

The price increase products include all polyethylene and polypropylene products of the above three companies. It is reported that at the recent OPEC ministerial closed-door meeting, the oil-producing countries' production reduction agreement was announced. In this context, crude oil prices will remain high. Affected by higher crude oil prices, tight supply and demand for naphtha, and the depreciation of the yen, the base price of naphtha, which is the main raw material of the above-mentioned chemical products, will increase significantly from January to March 2020. In addition, there are corresponding expenses, such as public welfare activities, auxiliary raw materials and other funds rose.

The three chemical companies all said that under the severe economic environment, they only rely on their own efforts to reduce costs, and it is difficult to bear the rapid rise in costs, so they made a decision to increase the price of the product.