TORAY, MITSUBISHI RAYON HIKING CARBON FIBER PRICES 10-30PCT

TOKYO, Jul 31, 2008 (AsiaPulse via COMTEX) -- TRYIY | Quote | Chart | News | PowerRating -- Toray Industries Inc. (TSE:3402) and the Mitsubishi Rayon Co. (TSE:3404) are raising prices on carbon fibers by 10-30%, passing on the higher fuel and raw materials costs that have accompanied costlier crude oil.

Toray will hike prices by 10-20%, starting with September shipments, while Mitsubishi Rayon is planning 20-30% increases, starting with August shipments.

This is the first time that both companies have raised prices across the board for all customers.

The current price is around Y4,000 ($US37.01) per ton, so prices will go up by a range between 400 yen and 1,200 yen per ton if the full hikes go through.

Sturdy yet lightweight, carbon fiber is considered an environmentally friendly material that helps reduce fuel consumption.

With demand growing, the price increases are likely to take effect quickly.

But continued hikes in the future could slow the pace of application development by automakers and other users.

Toray is the largest carbon fiber producer, while Mitsubishi Rayon ranks third.

Together, they account for half of global production. No. 2 firm Teijin Ltd. (TSE:3401) is said to be considering price hikes of its own, and an announcement is expected next week.

(Nikkei)

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