Japanese firms cut output amid naphtha supply shortages
Japanese firms are halting orders and raising prices due to naphtha shortages. While officials claim supplies are sufficient, companies report disruptions.
Manufacturers in Japan are reporting significant operational disruptions due to naphtha shortages, revealing a growing gap between government assurances of ample reserves and the practical difficulties faced by industry players. Over the past week, more than a dozen major firms, including TOTO LTD and ASAHI KASEI CORP, have flagged delivery delays or implemented price hikes. These companies cite mounting concerns over the procurement of naphtha-based materials, such as adhesives and solvents, which are essential for a wide range of industrial outputs.
The supply crunch is particularly evident among producers of thinner-related products. KANSAI PAINT CO LTD, which is legally restricted in the amount of hazardous stock it can maintain, has adjusted its delivery arrangements and increased prices. This shift has created a ripple effect downstream, impacting sectors as diverse as housing construction and plastic toy manufacturing. A recent industry survey conducted by the Japan Painting Contractors Association found that only 2.7% of firms are currently able to obtain thinner through their standard supply channels.
