Japan Chemical Trading Blog

The latest chemical trading industry insights from Japan, Asia and the world, reported by the President of Daishin Corporation, Masa Oguchi.

Ethylene Price Trending Down in East Asia

According to an article in the Nikkei Newspaper, a leading Japanese daily economic press, dated March 29th, the current spot price of ethylene in East Asia decreased by about 6% compared with the start price for the year, to US Dollar 1450-1460 per ton.

The most recent peak price was marked about a month ago. However, combined with the sluggish mood of the Chinese economy and the ending of last-minute demand for ethylene, which is a resin material for the automobile and construction industries, before the increase in consumption tax in Japan has caused the sluggish price trend. The number of resin trade inquiries is also decreasing.

Ethylene Price Trending Down in East Asia

According to an article in the Nikkei Newspaper, a leading Japanese daily economic press, dated March 29th, the current spot price of ethylene in East Asia decreased by about 6% compared with the start price for the year, to US Dollar 1450-1460 per ton.

The most recent peak price was marked about a month ago. However, combined with the sluggish mood of the Chinese economy and the ending of last-minute demand for ethylene, which is a resin material for the automobile and construction industries, before the increase in consumption tax in Japan has caused the sluggish price trend. The number of resin trade inquiries is also decreasing.

Kuraray Announces Excellent Results

According to an article in the Nikkei Newspaper, a leading Japanese daily economic press, dated March 27th, Kuraray’s consolidated operating profit for the fiscal year ending March 2015 will be around Japanese Yen 57 billion, an approximate 14% increase from the forecast for the present period.

It seems that the expected results exceed the expectation of investors, and Kuraray’s share price as of March 27th increased by 11 yen (0.96%) compared with the previous day, to 1,154 yen.

I have great expectations for this company, which was established by a person I respect, Mr. Magosaburo Ohara.

Kuraray Announces Excellent Results

According to an article in the Nikkei Newspaper, a leading Japanese daily economic press, dated March 27th, Kuraray’s consolidated operating profit for the fiscal year ending March 2015 will be around Japanese Yen 57 billion, an approximate 14% increase from the forecast for the present period.

It seems that the expected results exceed the expectation of investors, and Kuraray’s share price as of March 27th increased by 11 yen (0.96%) compared with the previous day, to 1,154 yen.

I have great expectations for this company, which was established by a person I respect, Mr. Magosaburo Ohara.

Rise in Land Prices in Tokyo

According to an announcement made by the Tokyo Metropolitan Government, a survey conducted on January 1, 2014 revealed that land prices in Tokyo rose an average of 1.7% from the previous year (on a yen basis). It is the first rise in the past 6 years.

The rise can be attributed to several factors including improvement in business sentiment since the start of the Abe Administration, Tokyo being selected as the host city for the 2020 Olympic Games, and increased construction demand due to post-earthquake disaster reconstruction.

To sustain the rising trend, the regrowth of Japan’s economy is essential.

Rise in Land Prices in Tokyo

According to an announcement made by the Tokyo Metropolitan Government, a survey conducted on January 1, 2014 revealed that land prices in Tokyo rose an average of 1.7% from the previous year (on a yen basis). It is the first rise in the past 6 years.

The rise can be attributed to several factors including improvement in business sentiment since the start of the Abe Administration, Tokyo being selected as the host city for the 2020 Olympic Games, and increased construction demand due to post-earthquake disaster reconstruction.

To sustain the rising trend, the regrowth of Japan’s economy is essential.

Serious Air Pollution in China

According to Yahoo News!, Panasonic Corporation, one of Japan’s largest electronics companies, decided to pay “air pollution care allowance” to its expatriate employees in China. This is a first such case for foreign companies operating in China.

When I went to China on a business trip last week, I saw no blue sky during my stay. I’ve heard that other people living in the same region of China also said they have not seen blue sky for a long time.

A fundamental solution to this problem is needed.

Serious Air Pollution in China

According to Yahoo News!, Panasonic Corporation, one of Japan’s largest electronics companies, decided to pay “air pollution care allowance” to its expatriate employees in China. This is a first such case for foreign companies operating in China.

When I went to China on a business trip last week, I saw no blue sky during my stay. I’ve heard that other people living in the same region of China also said they have not seen blue sky for a long time.

A fundamental solution to this problem is needed.

Polypropylene Price Declining in China

According to SunSirs, the PP price in China is declining.

Because of low demand, there is excess stock, and also because many new propane dehydrogenation (C3H8 – H2 = C3H6) factories are going to be built in China in the near future, a fall in the price is anticipated.

Polypropylene Price Declining in China

According to SunSirs, the PP price in China is declining.

Because of low demand, there is excess stock, and also because many new propane dehydrogenation (C3H8 – H2 = C3H6) factories are going to be built in China in the near future, a fall in the price is anticipated.

Increase in Tellurium Price

International market conditions for tellurium are improving. Tellurium is a rare metal used as a raw material for solar batteries and electronic parts.

There is a rumor that tellurium is going to be listed on the Fanya Exchange, a Chinese rare metal exchange market, in the near future.
It seems this rumor has a lot to do with the recent increase in the market price.

After marking a historically high price in 2011, the price had been significantly declining until last year.

Increase in Tellurium Price

International market conditions for tellurium are improving. Tellurium is a rare metal used as a raw material for solar batteries and electronic parts.

There is a rumor that tellurium is going to be listed on the Fanya Exchange, a Chinese rare metal exchange market, in the near future.
It seems this rumor has a lot to do with the recent increase in the market price.

After marking a historically high price in 2011, the price had been significantly declining until last year.

Sudden Drop in Copper Price

Currently, the copper price on the LME is the lowest in the last 8 months, trading in the USD6,700 range.

This is due to economic uncertainty in China such as the recent default on a corporate bond by a major Chinese PV panel manufacturer.

Copper markets in Shanghai and NY have also been marking a sell-off.

Sudden Drop in Copper Price

Currently, the copper price on the LME is the lowest in the last 8 months, trading in the USD6,700 range.

This is due to economic uncertainty in China such as the recent default on a corporate bond by a major Chinese PV panel manufacturer.

Copper markets in Shanghai and NY have also been marking a sell-off.

Japan’s Current Account Deficit Reached 1.5 trillion yen in January 2014

On March 10, 2014, the Ministry of Finance Japan announced that the current account deficit reached 1.589 trillion yen (approx. USD15 billion) in January, marking a record high since 1985, the year from which comparable data is available.

The current account deficit of the previous month was 638.6 billion yen (approx. USD6 billion), the highest record at that time; however, the deficit in January widened to about two times that amount.

The trade deficit, the difference between imports and exports, reached 2.3454 trillion yen. The importing of crude oil and LNG increased dramatically.

Japan’s Current Account Deficit Reached 1.5 trillion yen in January 2014

On March 10, 2014, the Ministry of Finance Japan announced that the current account deficit reached 1.589 trillion yen (approx. USD15 billion) in January, marking a record high since 1985, the year from which comparable data is available.

The current account deficit of the previous month was 638.6 billion yen (approx. USD6 billion), the highest record at that time; however, the deficit in January widened to about two times that amount.

The trade deficit, the difference between imports and exports, reached 2.3454 trillion yen. The importing of crude oil and LNG increased dramatically.

The LDPE market in China is declining

In the past 3 months, it is said that the market value has declined more than 15%.

It seems an excess stock of LDPEs in China, the area of greatest demand in the region, has influenced this.