Japanese Companies Warn of Rising Naphtha Supply Issues Despite Government Confidence

Japanese manufacturers are increasingly signaling disruptions in naphtha supply, even as authorities continue to assure that the country has sufficient reserves for the near term.

Industry players report growing challenges in securing feedstock, driven by tighter global availability and ongoing disruptions linked to the Middle East conflict. While companies are actively seeking alternative sources, supply conditions remain strained.

Asahi Kasei has expanded its procurement network beyond the Middle East, sourcing naphtha from regions such as the United States, Africa, and parts of the Americas and Central Asia. The company expects to maintain supply in the coming months, but acknowledges that sourcing has become more complex and costly, which could lead to price increases across multiple product segments.

The conflict has significantly impacted naphtha trade flows by limiting production and complicating shipping routes, exposing Japan’s reliance on imports. Although the government estimates that current supply can meet demand for several months through a mix of imports, domestic production, and inventories, the situation on the ground is already affecting operations.

Several downstream manufacturers have started reporting delays in shipments, reduced production levels, and rising prices for products such as adhesives, solvents, and thinners. This indicates that supply pressure is gradually moving through the value chain, raising concerns about further disruptions ahead.

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