Price Revisions for Activated Carbon and Other Related Products
Kuraray Chemical Co., Ltd. (Headquarters: Osaka City; President: Nobuo Iwawaki) announced its decision to revise the prices of activated carbon and other related products. The price revisions will be implemented for shipments in Japan and overseas commencing August 1, 2011.
The primary raw materials for producing activated carbon are coconut shell, coal and wood chip.
*The balance of supply and demand has deteriorated substantially primarily due to poor harvest following many years of inclement weather, increased demand for coconut shell in the food products sector and heightened global demand for activated carbon. Consequently, prices have risen sharply because of the extreme difficulties in securing supplies of this raw material.
*Prices have once again increased because of higher demand in Asia led by China and India.
*Insufficient supplies of this raw material on the back of higher demand for activated carbon in China, Japan and other Asian countries is pushing up prices.
The increases in the prices of these raw materials have significantly outstripped Kuraray Chemical’s independent efforts to reduce costs in the activated carbon business, making deteriorations in revenue and earnings unavoidable. Under these circumstances, Kuraray Chemical has decided to implement the following price revisions for activated carbon in order to maintain a steady supply given the demand for this material mainly in the environment field as well as to improve profitability.
1. Scope of revision Activated carbon and other related products
2. Price increase Depending on the product
15%–30% in Japan
3. Effective date Shipments from August 1, 2011
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