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Japan fears a naphtha shortage amid Strait of Hormuz tensions, raising concerns over disruptions in plastics, packaging, paints and other industries dependent on Middle East imports.
While the global energy crisis due to the war in the Middle East has gripped nations with rising fuel prices, Japan is facing fears of a naphtha shortage. Amid the blockade of the Strait of Hormuz, a key shipping route for oil supply from the Gulf, reports surfaced of rising concerns over a shortage of naphtha, a key material used in manufacturing a wide variety of products. The little-known material has since then become a major concern in the country.
Naphtha is a highly flammable liquid mixture derived mainly from crude oil and natural gas processing. It is widely used as a raw material in the petrochemical industry to produce petrol, plastics, synthetic fibres, adhesives, insulation foam, solvents, printing inks and medical supplies like syringes. Because it is essential for manufacturing and energy production, disruptions in naphtha supplies can affect multiple industries and everyday consumer products. Asia, especially Japan, relies heavily on naphtha imports from the Middle East.
Fears of a shortage of Naphtha increased in Japan due to its heavy dependence on Middle Eastern imports for industrial production. Since the maritime traffic is disrupted in the Strait of Hormuz amid tensions in the region, concerns have emerged over shortages of plastics, packaging, paints, food processing and other daily-use products.
The public worry heightened after Calbee, the country’s biggest snack maker, announced that it was changing its colourful packaging of potato chips to monochrome due to ink supply uncertainty. Rising prices and reports of disruptions across industries have further deepened anxiety among Japanese consumers.
While Japan has a significant stockpile of petrol, claims have emerged that the government may be downplaying the risk of disruption to other industries. Recent Japanese reports have focused on articles explaining what naphtha is and how its shortages could affect everyday life.
According to a Guardian report, citing data, Japan’s wholesale inflation accelerated in April at the fastest pace in three years. It added that the price of naphtha has observed a sharp spike of 79.4 per cent. According to a Kyodo News poll, 70 per cent of people expressed concerns over Naphtha supplies being disrupted.