TOKYO—Japanese chemical company Mitsui Chemicals anticipates that the TDI demand-supply outlook will ease in 2018 compared to 2017, according to statements made during a recent investor meeting.
"In 2018, the demand-supply scenario is expected to be relaxed due to full-fledged operation of new and expanded plants. We expect that the market conditions will weaken in association with this," said Osamu Yoshida, deputy general manager of corporate communications for Mitsui Chemicals.
Diisocyanate prices remained high in 2017, owing to delays in operation of new and expanded plants and effects of forces majeure.
Away from polyurethane raw materials, Mitsui said it expects operating income to decline between the second half of 2017 and the first half of 2018. This is due to large-scale regular maintenance of crackers at Osaka and maintenance of other products.
Operating income from the company's Basic Material sector grew marginally by 0.4 percent between 2016 and 2017, reaching $354 million in 2017. Net sales grew by 72.1 percent to $1.9 billion in fiscal year 2017.
Mitsui Chemicals' long term business plan aims to achieve $18 billion in sale, and $2 billion in operating income by 2025.