Asia adds luster to weak chemical markets

Asia adds luster to weak chemical markets

The sustained global economic downturn has resulted in weak demand in the global chemical market, but Asia's performance is not as bad. In the third quarter, chemical companies in some parts of Asia benefited significantly from factors such as increased equipment utilization and improved product profitability in weak markets. At the same time, some chemical companies in certain countries have experienced a decline in profits, such as South Korea. In response to these inconsistent performances, industry insiders suggest that chemical companies should actively respond to international negative impacts and find the most suitable path for their own development based on their actual situation, continuously creating profits, such as focusing on high profit products, divesting unprofitable business departments, improving production equipment utilization, and saving production costs through energy conservation and consumption reduction.

Japan's profits are impressive

During the first half of this fiscal year ending on September 30th, Japanese companies including Mitsubishi Chemical, Sumitomo Chemical, Mitsui Chemical, Asahi Kasei, Shinetsu Chemical, Toray Industries, Coca Cola, and Nippon Catalyst were included

The profits and sales revenue of this major chemical enterprise have both increased. Mitsubishi Chemical Holdings, the parent company of Mitsubishi Chemical, achieved a year-on-year increase of 22% in net profit, reaching 33.3 billion yen; Sales revenue increased by 3.8% to 1.67 trillion yen; Operating profit increased by 43% year-on-year to 73.7 billion yen. Mitsubishi Chemical Holdings stated that its strong performance in the first half of this fiscal year was mainly due to strong demand for polymer processing products and improved profitability in the industrial materials business

Good. The strong increase in net profit is partly due to the sale of fixed assets for profit. In the first half of this fiscal year, Pianyou Chemical achieved a year-on-year increase of 81% in net profit, reaching 22.67 billion yen. Sales revenue increased by 74% to 113 trillion yen. In the first half of the year, under the umbrella of Dianyou Chemical, sales revenue increased by 13% year-on-year to 154.9 billion yen, resulting in an operating loss of 3.91 billion yen, which was slightly smaller than the operating loss of 4.79 billion yen in the same period last year. Sumitomo Chemical stated that the sales revenue of its methyl methacrylate (MMA) subsidiary increased in the first half of the year, mainly due to the increase in both sales price and sales volume, while the sales price of synthetic fiber raw materials remained low and sales volume also declined.

In the first half of the year, Asahi Kasei Corporation achieved a net profit growth of 6.3%, rising to 49.5 billion yen; Sales revenue increased by 5.2% to 966.9 billion yen. Asahi Kasei's chemical and fiber businesses achieve sales revenue

Increased by 4.5% to 477.5 billion yen, but operating profit decreased by 3.6% year-on-year to 26.6 billion yen. Dongli Industrial Company achieved a year-on-year increase of 41% in net profit to 41.3 billion yen in the first half of the year; Sales revenue increased by 11% year-on-year to 947.9 billion yen. Dongli Industrial's carbon fiber composite materials business achieved a 47% increase in sales revenue, reaching 76.6 billion yen; Operating profit increased by 66% year-on-year to 11.8 billion yen. Dongli Industries stated that the demand for carbon fiber composite materials in aviation, automotive, and energy applications continues to grow strongly. In the first half of the year, Dongli Industrial's plastic and chemical business achieved a year-on-year increase of 8% in sales revenue, reaching 246.2 billion yen; Operating profit surged by 30% year-on-year to 11.7 billion yen. Dongli Industries' fiber and textile business achieved a 15% increase in sales revenue to 386.2 billion yen; However, the operating profit decreased by 5.9% year-on-year to 22.8 billion yen. Dongli Industries stated that sales in the domestic clothing application sector in Japan remain sluggish due to the increase in consumption tax, while sales in the industrial application sector are strong, mainly driven by strong sales in the automotive application sector. The stagnant prices of raw materials and fuels have squeezed the profitability of this business. Dongli Industrial's carbon fiber composite materials business achieved a 47% increase in sales revenue, reaching 76617 yen, with operating profit increasing by 66% year-on-year to 11.8 billion yen.

Japanese catalyst company's net profit in the first half of the year more than doubled year-on-year, reaching 7.47 billion yen; Sales revenue increased by 36.6% year-on-year to reach 179.3 billion yen. For this fiscal year, Japan Catalyst expects a net profit of 20 billion yen and sales revenue of 370 billion yen.

Mitsui Chemicals achieved a 6% year-on-year increase in sales revenue in the first half of the year, reaching 776 billion yen, and a net profit of 7.4 billion yen, achieving a turnaround from losses.

Shin Etsu Chemical achieved a year-on-year increase of 5.5% in sales revenue in the first half of the year, reaching 603.7 billion yen; Net profit increased by 5.9% year-on-year to 67.58 billion yen.

Keleli Company achieved an 11.7% increase in sales revenue, reaching 222.6 billion yen; Net profit increased by 8.1% year-on-year to 17.03 billion yen.

Dongchao Company achieved a slight year-on-year decrease of 2.8% in net profit in the first half of the year, reaching 13.7 billion yen; Sales revenue increased by 5% year-on-year to 384 billion yen, mainly stimulated by rising export prices and a weak yen. In the first half of the year, the company's petrochemical business achieved a sales revenue increase of 6.2% to 116.6 billion yen, but operating profit fell 34.4% year-on-year to 4.3 million yen. Dongchao Company stated that due to the planned shutdown and maintenance of the equipment, the sales revenue of propylene, isopropylbenzene, and other olefins decreased in the first half of the year, while the sales revenue of ethylene increased, but the sales revenue of polyethylene decreased. In the first half of the year, Dongcao Company's ammonia alkali business achieved a 2% increase in sales revenue to 137.4 billion yen; Operating loss of 500 million yen, compared to 838 million yen in the same period last year.

India's performance is impressive

The petrochemical business under Indian Oil Corporation achieved a year-on-year increase of 38% in sales revenue to 53.43 billion rupees (approximately 867 million US dollars) in the second quarter of the fiscal year ending on September 30th. In the first half of this fiscal year, sales revenue increased by 27% year-on-year to 103.6 billion rupees.

Tata Chemicals in India achieved a year-on-year increase of 91% in net profit for the second quarter of the fiscal year ending on September 30th, reaching 2.57 billion rupees (approximately 42 million US dollars); Sales revenue increased by 10.6% year-on-year to 48.03 billion rupees.

Tata Chemicals General Manager R Mukundan stated that the performance in the second quarter and first half of this fiscal year was encouraging, with all of the company's businesses performing well. The ongoing restructuring plan has also had a positive impact on performance growth,

Gai India's petrochemical business achieved a 13% increase in sales revenue to 12.8 billion rupees (approximately 208 million US dollars) in the second quarter of this fiscal year, but its pre tax profit (Ebit) fell by about 60% year-on-year to 1.55 billion rupees. In the second quarter, the production of Gai India's petrochemical business reached 119000 tons, an increase from 114000 tons in the same period last year, while the sales volume reached 110000 tons, an increase of 2000 tons from the same period last year.

Thailand's income growth

Due to Dorama Company achieving a year-on-year increase of 7.5% in sales revenue in the third quarter, reaching 63.6 billion Thai Railways

In the third quarter, Dorama's PET resin business achieved sales revenue of 37.2 billion Thai baht, slightly lower than the 38.2 billion Thai baht in the third quarter of last year, while the core EBITDA reached 1.92 billion Thai baht, slightly lower than the 1.93 billion Thai baht in the same period last year. In the third quarter, the company's fiber and yarn business achieved sales revenue of 18.3 billion Thai baht, significantly higher than the 11 billion Thai baht in the same period last year; Realize a core Ebitda of 778 million Thai baht, compared to only 448 million Thai baht in the same period last year. And the raw material business achieved sales revenue of 18.4 billion Thai iron, compared to 18.8 billion Thai iron in the same period last year; Core Ebitda increased from 1.54 billion in the same period last year

The Thai baht slightly increased to 1.56 billion baht. The company stated that its sales volume and revenue both increased in the third quarter, benefiting from recent mergers and acquisitions and the completion of a PET plant de bottleneck renovation project in Poland. The CEO of the company, Aloke Lohia, stated, "The significant drop in international crude oil prices has had a positive stimulating effect on our PET and fiber demand in the market, while also improving the profitability of our high value-added product business.

The chemical subsidiary of Chi Luo Cement Group achieved a year-on-year increase of 10% in net profit in the third quarter, rising to 4.2 billion Thai Railways. In the third quarter, the company's sales revenue increased by 15% year-on-year, reaching 64.3 billion Thai baht. In the third quarter, the company's Ebitda increased by 24% year-on-year, reaching 7.6 billion Thai baht. In the third quarter, the company sold a total of 447000 tons of hydrocarbons.

The company stated that the increase in performance was due to the improvement of profitability and the appropriate increase in product sales prices,

The operating rate in Malaysia has increased. In the third quarter, Petronas achieved a year-on-year increase of 2.8% in profit, rising to 732 million ringgit (approximately 220 million US dollars). Stimulated by the increase in sales volume of highly profitable ethylene and alkyl products, sales revenue increased by 0.6% year-on-year, reaching 3.54 billion Thai iron. In the third quarter, the operational performance of Ma Guoyou Chemical Company improved, and the utilization rate of the equipment increased from 70% in the same period last year to 75% in the third quarter of this year. The increase in equipment utilization rate compensated for the loss of methane gas supply shortage in the company's methanol production facilities. Affected by the increase in device utilization, the company's production increased in the third quarter. The price performance of various products under the company's umbrella varied in the third quarter. The rising cost of ethylene raw materials led to an increase in the sales price of polymer products, while the tight supply caused an increase in the price of fertilizer products. However, the prices of ethylene glycol, aromatic hydrocarbons, and methanol fell, mainly due to weak market demand and overcapacity.

The olefin and derivative business under the Malaysian Oil and Chemical Company achieved a year-on-year increase of 2.6% in sales revenue to 2.73 billion ringgit in the third quarter; Profit increased by 5.8% year-on-year, rising to 562 million ringgit. The olefin and derivative business mainly benefited from the significant increase in installation utilization rate. In the third quarter of this year, the equipment utilization rate of this business jumped from 78% in the same period last year to 90%. Last year during the same period, the company's main steam cracking units and downstream production facilities were in a state of shutdown for maintenance. The sales revenue of the company's fertilizer and methanol businesses in the third quarter decreased by 6.7% year-on-year to 851 million ringgit; Profit decreased by 8.9% year-on-year to 143 million ringgit, mainly due to a decrease in product sales, especially methanol sales.