Japan Chemicals Sector "Chemicals: Key themes for April-June results and..."

研报英文原文证据摘录

Japan Chemicals Sector "Chemicals: Key themes for April-June results and..."

Global Research

17 July 2026ab

Japan Chemicals Sector Equities

JapanChemicals: Key themes for April-June results and

beyond Chemicals

Shunta Omura

Analyst

shunta.omura@ubs.com

April-June results: we still favour Shin-Etsu, Nippon Sanso, and Asahi Kasei +81-3-5208 6244

Heading into the April-June results announcements, our top picks remain Shin-Etsu

Chemical (4063, Buy), Nippon Sanso Holdings (4091, Buy), and Asahi Kasei (3407, Buy)

(link). However, we note the risk of one-off costs being recorded at Nippon Sanso

Holdings due to product recalls announced by its Thermos equity-method affiliates in

China and the US (30-40% ownership stakes) (link). Looking ahead to July-September,

sales volume trends across the sector are likely to be a focus. We believe demand was

pulled forward from March onward, with volume momentum having softened more

recently. Reflecting the weak demand environment, the operating rate for Japan’s

naphtha crackers fell to a record low of 66.5% in June. With Middle East-related

uncertainty still elevated, we believe downstream industries are unlikely to resume

aggressive inventory restocking anytime soon.

Silicon wafer industry: Focus on Shin-Etsu Chemical’s commentary

SUMCO (3436, Neutral) has moved in a wide range of ¥3,916-¥5,244 since 1 July,

demonstrating notable volatility. The stock currently trades near the bottom of that

range. We believe the share price temporarily rose on heightened expectations for

tighter supply-demand conditions in the 12-inch silicon wafer market and the potential

for future price increases accompanying the announcement of Micron's investment in

GlobalWafers' Sherman facility in Texas, together with a 10-year supply agreement

(link).