Zeon’s elastomers business held back by slow latex demand in third quarter

Tokyo – Zeon Corp.’s elastomers business has been impacted by slow demand for latex used in rubber glove despite an uptick in third quarter synthetic rubber sales.

For the quarter ended 31 Dec 2023, the business unit reported a 2% year-on-year decline in revenue to Yen55 billion, reflecting a 22% drop in sales of latexes and an 8% fall in chemicals.

Synthetic rubber sales, meanwhile, grew 2% year-on-year to Yen42 billion, Zeon announced 31 Jan.

Zeon linked the lower sales to “sluggish” latex shipment due to surplus distribution inventory, while adhesives market lacked strength in the chemicals business.

Segment operating income was down 12% year-on-year at Yen2.5 billion, as Zeon was unable to pass on the increase in operating costs for chemicals to prices.

In terms of volumes, Zeon said shipments for synthetic rubbers and chemicals grew 13% each during the quarter, while latexes saw a 20% year-on-year decline during the three-month period.