Japan: Higher Nonwovens Production

According to the Ministry of Economy, Trade and Industry, the production of nonwovens in the first half of 2006 recorded slightly more than 160,000 tons, a gain of 4.9% from the year-ago level. All-time yearly high in Japan was 314,123 tons in 2000. If this first-half trend should continue into the

Skyrocketing raw material and mineral fuel prices considerably affected spunbonded nonwovens with the highest material ratio. Among other things, in the case of polypropylene spunbonded nonwovens, prices of polypropylene resin, a raw material, rose in tandem with naphtha prices. Resin producers have announced their eighth rounds of price-hikes. Consequently, nonwovens producers have also announced a price rise. If this price increase should fail, the number of producers moving into the red will increase. At one producer, profits fell sharply despite higher sales. As a result, this producer has formulated a policy not to produce unprofitable items in the future.