Japan faces chemical shortages from late June on supply loss

Japan faces chemical product shortages starting late June as it struggles to replace 15 million kilolitres of naphtha supplies from the Middle East. The region previously supplied 40% of direct naphtha and 95% of crude oil used for domestic refining. Investors should monitor potential production halts in the Japanese manufacturing sector as domestic reserves and alternative sources reach their limits.

The Naphtha Supply Gap