Naphtha Disruptions Trigger Widespread Supply Anxiety and Price Hikes in Japan
A continuous disruption surrounding naphtha, refined from crude oil, is leading to supply anxieties and price surges across a wide range of sectors, including food packaging materials, paints, garbage bags, and even medical-related products. While the government attributes the issue to "blockages in distribution," voices from the ground strongly claim an actual shortage in supply, sparking widespread skepticism about the government's explanation. The primary cause of the naphtha supply instability, which forms the foundation of petroleum products, is believed to be reduced production at midstream ethylene plants. Some reports indicate that even if the total volume of naphtha is secured, upstream production cuts are causing a shortage of intermediate raw materials essential for manufacturing final products. This has made it difficult for the paint industry to secure raw materials, and inquiries about supply disruptions are also coming in from car maintenance and bodywork s...