Japan diversified chemicals: Points to watch in Apr-Jun earnings: Focus on return to normal in Middle East, structural reforms

Research evidence excerpt

Japan diversified chemicals: Points to watch in Apr-Jun earnings: Focus on return to normal in Middle East, structural reforms

Japan diversified chemicals: Points to watch in Global Markets Research

Apr–Jun earnings 26 June 2026

EQUITY: JAPAN CHEMICALS & TEXTILES

Focus on return to normal in Middle East, Research Analysts

structural reforms Japan chemicals & textiles Shigeki Okazaki - NSC

shigeki.okazaki@nomura.com

We note risk of demand being brought forward and subsequent fallback +81 3 6703 1170

Daiki Ban - NSC

We see multiple variables for Apr–Jun earnings daiki.ban@nomura.com

In this report we outline the main points to watch in Apr–Jun 2026 results in the diversified +81 3 6703 1124

chemicals, textiles & fibers, and paint sectors. We identify multiple variables for Apr–Jun Yusho Yoshitake - NSC

earnings, including technical factors, such as the rise in crude oil and naphtha prices and yusho.yoshitake@nomura.com

naphtha shortages resulting from the conflict in the Middle East, cost pass-throughs, +81 3 6703 1169

valuation gains on naphtha inventories, and frontloaded demand owing to customer Takaomi Kono - NSC

concerns about petrochemical shortages. We will have to keep a close eye not just on the takaomi.kono@nomura.com

size of operating profits in Apr–Jun but also on companies' outlooks for fundamentals from +81 3 6703 1207

Jul–Sep onwards, which may be affected by a fallback from frontloaded demand. Shu Kanbe, CFA - NSC

Normalization of situation in Middle East would be a positive for the sector shu.kanbe@nomura.com

+81 3 6703 1214The MOU for a ceasefire between the US and Iran signed on 15 June prompted the Dubai

crude oil price to fall back below $70/bbl for time over 25–26 June, which demonstrates