Japan Faces Chemical Supply Chain 'Clogging' Due to Naphtha Shortage

The Japanese government and chemical manufacturers are addressing a shortage of specific naphtha grades used as solvents for inks and chemicals.

This disruption threatens the production of essential industrial materials. While the national volume of naphtha remains secured, a mismatch in the available grades of the chemical is creating a bottleneck for manufacturers.

The Ministry of Economy, Trade and Industry and the Agency for Natural Resources and Energy said the situation is a "clogging" in the supply chain [1, 3]. This specific shortage is affecting industries that rely on naphtha derivatives for solvents, with notable impacts reported in Kumamoto prefecture [3, 5].

Geopolitical tensions in the Middle East have reduced crude-oil imports, contributing to the instability [1, 2]. Simultaneously, market dynamics have shifted to prioritize the production of higher-priced gasoline over lower-value naphtha derivatives [1, 2]. This shift is exacerbated by gasoline prices exceeding 200 yen per litre ^[3].

Industry experts said in early May that the situation could worsen if the imbalance is not corrected [1, 2]. Some reports indicate a potential supply halt could occur by June 2026 if the shortage persists ^[2].

The government is working with chemical industry manufacturers to resolve the grade-specific deficit. The objective is to ensure that the "necessary form" of the chemical reaches the factories that require it, rather than focusing solely on the total volume of imports ^[3].