Source | Toray Industries

Toray Industries, Inc. (Tokyo, Japan) will introduce surcharge pricing on carbon fiber composite materials and other products as an emergency measure to address skyrocketing costs for petrochemical feedstocks and other raw materials driven by the military conflict with Iran and de facto blockade of the Strait of Hormuz. Specific details — including applicable products and conditions — will be discussed individually with customers by the relevant business divisions, moving forward with mutual understanding. 

Given the urgency of this measure, surcharges have already been applied to some products and will be added to other products going forward. Toray will review the surcharges at regular intervals in light of market conditions and trends in raw material prices. This pricing mechanism is not a permanent price revision, but a temporary emergency measure designed to respond swiftly to rapid changes in the external environment.

The global economy is facing new risk factors, which include soaring costs for raw materials, fuel and logistics due to the Strait of Hormuz blockade, as well as disruptions to raw material sourcing. Combined with continued stagnation in the Chinese economy and a highly unpredictable U.S. tariff policy, the global economic outlook is becoming increasingly uncertain.

Against this backdrop, crude oil prices have surged so dramatically that the Japanese media has described the situation as historically severe, calling it the “third great oil crisis.” Toray notes that it will be difficult to maintain stable production employing only internal efforts to absorb the rising costs. The current situation requires faster management decision-making.

Toray views this new pricing approach as part of its broader efforts to navigate current global challenges, as it will streamline price negotiations with customers and accelerate decision-making across the supply chain. Although procurement concerns are emerging for some raw materials, Toray will continue to make every effort to ensure a stable supply. Going forward, the company will continue to monitor geopolitical risks and energy market trends closely.

Toray has long aspired to be more than just a materials manufacturer, seeking to create and deliver value across the entire supply chain. Toray recognizes that, to continue growing, it must expedite initiatives such as supply chain restructuring, new market development and technology investment, employing flexible strategies that can respond swiftly to changes in the business environment. It will strengthen its medium- to long-term competitiveness by diversifying procurement sources, increasing production efficiency, and reducing environmental impact, thereby contributing to the sustainable development of society and industry.