Keiichi Iwata, chairman of the Japan Chemical Industry Association, said Friday that the supply of naphtha remains sufficient despite current global instability.
This statement comes as volatility in the Middle East threatens global supply chains, creating anxiety among manufacturers regarding the availability of essential raw materials. Because chemical products vary widely in grade and volume, any perceived shortage can trigger panic buying and over-ordering, which further destabilizes the market.
Iwata said that logistical bottlenecks can occur even during normal operations. He said that the industry is currently working to resolve specific issues one by one rather than facing a total collapse of supply. "Chemical products are numerous, and there are different grades," Iwata said. "Even if it were not for this situation [in the Middle East], bottlenecks or shortages occur in a normal state."
The association's confidence in the supply chain aligns with statements from the Japanese government. Prime Minister Sanae Takaichi said Thursday that naphtha is sufficient [2]. Government explanations further indicate that the country is capable of procuring a six-month supply of the material [3].
However, these assurances contrast with reports from within the industry. Some industry insiders said to the Asahi Shimbun Wednesday that they feel the supply of naphtha is becoming strained [4]. Other reports have suggested that anxiety over shortages is spreading, leading some industry players to complain of insufficient supply [5].
Iwata said that communication is essential to prevent the industry from over-ordering during these periods of confusion. He said the association intends to provide clear explanations regarding stability to maintain a steady flow of materials across the sector.
“"Even if it were not for this situation [in the Middle East], bottlenecks or shortages occur in a normal state."”
The discrepancy between the Japan Chemical Industry Association's public confidence and the reported anxieties of industry insiders suggests a gap between official strategic reserves and the real-time operational experience of manufacturers. While the government's six-month buffer provides a macro-level safety net, the 'bottlenecks' mentioned by Iwata indicate that specific grades of chemicals may still be difficult to source, potentially leading to localized production delays despite an overall surplus of raw naphtha.
