Mitsubishi Chemical recently announced its decision to exit the coke and carbon materials business operated by its subsidiary, Mitsubishi Chemical Coal Division. This business encompasses two core product categories: needle coke and pitch coke. The adjustment is expected to result in approximately 85 billion yen in non-recurring losses for the company. Production of the related products is scheduled to officially cease in the second half of 2027. Following the termination of production, sales of these products will gradually decline, and the production facilities will be dismantled as soon as possible after operations are halted. According to publicly available data, the coke and carbon materials business generated revenue of 115.7 billion yen in the fiscal year ending March 2025 and employed approximately 600 workers as of February 2, 2026. Notably, products such as pitch-based carbon fibers and anode materials manufactured at the company’s Kagawa plant will remain unaffected by this business adjustment and will continue normal operations. Mitsubishi Chemical explicitly stated that the decision to exit stems from the prolonged downturn in the overseas coke market. On one hand, persistent weakness in global steel demand, coupled with overcapacity in competing products, has led to a supply-demand imbalance in the coke market. On the other hand, the production system for carbon materials is closely tied to coke oven operations, meaning the current state of the coke business directly impacts the cost structure of the carbon materials business. Given the industry’s supply-demand imbalance and weak market demand, which are unlikely to improve in the short term, the company concluded that ceasing coke and related carbon materials production is the most viable strategic choice at this stage.