Prime Minister Takashi said that Japan will supply raw materials directly from oil majors to solvent and paint manufacturers to stabilize the market [1].
This move addresses critical supply imbalances and distribution bottlenecks caused by ongoing tensions in the Middle East. By bypassing traditional intermediaries, the government aims to meet urgent requests from manufacturers for a reliable stream of raw materials necessary for industrial coatings, and thinners.
During a cabinet meeting on Middle East affairs, Takashi said that by supplying materials such as toluene directly from oil majors, Japan can achieve a supply level of 1.8 times the usual annual demand [1]. This strategy is designed to ensure that the production of thinners and related chemical products remains uninterrupted despite geopolitical volatility.
The Prime Minister also provided an update on the recovery of essential chemical feedstocks. Takashi said that alternative procurement of naphtha has recovered to 85% of previous levels [1]. He said that the supply of petroleum products can now be maintained beyond the current fiscal year [1].
The shift toward direct supply represents a tactical intervention in the chemical supply chain. By coordinating directly with oil majors, the administration seeks to eliminate the bottlenecks that typically occur when raw materials move through multiple distribution layers during a crisis.
Takashi said the government is prioritizing the stability of these industrial materials to prevent wider economic disruptions. The direct supply model is intended to provide a buffer against future shocks in the energy and chemical sectors originating from the Middle East [1].
“Japan can achieve a supply level of 1.8 times the usual annual demand”
This policy shift indicates that Japan is moving toward a more interventionist approach to supply chain management for critical industrial chemicals. By leveraging the direct capacity of oil majors, the government is attempting to decouple its domestic manufacturing stability from the immediate fluctuations of Middle Eastern geopolitics, effectively treating toluene and naphtha as strategic assets rather than purely commercial commodities.
