The worsening situation in the Middle East drove up the price of naphtha, a raw material, resulting in higher inventory valuation gains in the September 2026 interim results of the four major petrochemical companies. Against this backdrop, all four companies raised their consolidated forecasts for the fiscal year ending March 2027.
After the situation in the Middle East deteriorated, crude oil prices rose and the price of naphtha, a raw material for plastics, climbed to a level approximately 50% higher than in the same period of the previous year. As a result, inventory valuation gains increased, and the four major petrochemical companies reported higher profit in their September 2026 interim results compared with the same period of the previous year.
Mitsui Chemicals reported a ¥58.8 billion increase in profit and Sumitomo Chemical an ¥82.8 billion increase, while Mitsubishi Chemical Group reported lower profit because of the reaction to a special gain recorded in the previous year's interim period. However, operating profit from its core business remained strong, more than doubling to ¥199.6 billion.
The expansion of inventory valuation gains alongside higher naphtha prices affected the four companies' full-year outlooks, while the resilience of their semiconductor materials businesses was also cited as a factor supporting performance. In their September 2026 interim results, all four companies saw inventory valuation gains provide a boost to profit.
All four companies raised their consolidated earnings forecasts for the fiscal year ending March 2027. Views were expressed that tailwinds from demand for semiconductor materials and the impact of higher raw material prices could continue. The companies, including Asahi Kasei, expect to sustain their performance against a backdrop of increased demand for semiconductor-related materials.