TOKYO, September 30, 2010 _ Ube Industries, Ltd. announced today that it will implement a price increase for diol products (1,6-hexanediol and 1,5-pentanediol) in Japan and other parts of Asia effective for shipments on or after October 1, 2010. This price revision follows an earlier increase in prices implemented on April 1, 2010. The price increase is necessitated by sustained pressured on supply and demand of diol products driven by increased demand accompanied by the global increase of environmental awareness.
|1,6-Hexanediol||Customers in Japan||Min. ¥45 per kg|
|Customers in other parts of Asia||Min. US$0.55 per kg|
|1,5-pentanediol||Customers in Japan||Min. ¥55 per kg|
|Customers in other parts of Asia||Min. US$0.65 per kg|
Shipments on or after October 1, 2010
1,6-hexanediol and 1,5-pentanediol are core products that Ube Industries offers in the fine chemical segment. The properties of both products make them suitable for use in producing high-quality, high-performance polyesters, polyurethane resins, and adhesives. Demand for 1,6-hexanediol has grown in recent years for use in ultraviolet (UV) curable coating materials that are notable for their low environmental impact.
Global demand for both diol products have been growing by 5-8% annually, with markets in China and other Asian countries recording high rates of growth exceeding 10% annually. The strong pressure on supply and demand for 1,6-hexanediol and 1,5-pentanediol is expected to continue in the future.
Ube Industries is the only Japanese manufacturer of 1,6-hexanediol and 1,5-pentanediol , with a total annual production capacity of 13,000 tonnes from three production bases in Ube City (Yamaguchi Prefecture), Sakai City (Osaka Prefecture) and Spain. The company is building a new plant in Thailand that is expected to commence production in May 2011 with an annual capacity of 6,000 tonnes.