Free roll-type plastic bags once available to shoppers at supermarkets are being removed one after another as shortages of naphtha, a petroleum-derived raw material used in plastic production, spread across Japan amid ongoing tensions in the Middle East.
Japan’s corporate goods prices rose 4.9% in April from a year earlier, far exceeding market expectations as soaring crude oil prices linked to tensions in the Middle East pushed wholesale inflation to its highest level in nearly three years.
Kagome announced on May 14th that it will temporarily redesign several ketchup products by reducing printed packaging areas and adopting mostly transparent labels as worsening tensions in the Middle East continue to disrupt supplies of white ink and other petroleum-based packaging materials across Japan.
The impact of Japan’s growing naphtha shortage is spreading across a widening range of industries, raising concerns about manufacturing, logistics, and even daily consumer life.
The “ink shock” caused by tensions in the Middle East is beginning to spread across Japan’s food packaging industry, prompting manufacturers to simplify designs and reduce ink usage as concerns grow over naphtha supplies and rising printing costs.
A discount supermarket chain known for its ultra-low prices has raised the price of kaiware radish sprouts for the first time in 34 years, as worsening tensions in the Middle East continue to drive up oil-related costs and disrupt supplies of plastic products across Japan.
Prime Minister Takaichi returned to Japan after visits to Vietnam and Australia during the Golden Week holidays, securing agreements with both nations to strengthen supply chains for critical minerals and enhance cooperation on energy security, as Tokyo seeks to counter China’s economic pressure and navigate instability in the Middle East.
A shortage of naphtha, a key petrochemical feedstock used in a wide range of products, is pushing up the cost of housing materials in Japan and raising concerns that home prices could climb by as much as 30%.
TOTO said on April 16 that it will gradually resume new orders for its unit bath products from April 20 after securing a clearer outlook for raw material procurement.
As tensions in the Middle East continue, 42 vessels linked to Japan remain stranded in the Persian Gulf, raising concerns over supply chains for naphtha, a key raw material used in plastics and coatings, with manufacturers warning that prolonged disruptions could drive up prices for everyday goods and housing materials.
TOTO has suspended new orders for some unit bath systems due to difficulties securing petroleum-based materials, highlighting how prolonged high crude oil prices are beginning to disrupt supply chains and feed into broader inflation risks in Japan.
The Japan Painting Contractors Association has requested the government to secure stable supplies of materials, warning that concerns over shortages of paint and thinner derived from naphtha have become increasingly severe.
A growing shortage of products derived from naphtha is beginning to affect everyday industries, as instability surrounding supply routes linked to tensions involving Iran raises concerns across Japan’s economy.
Rising tensions in the Middle East are raising concerns over potential disruptions to medical supplies in Japan, particularly due to uncertainty surrounding naphtha used in products such as gloves and gowns, with hospitals warning that a halt in supply could significantly impact medical care while authorities move to reassure that stockpiles are sufficient for the time being.
As the Iran conflict shows signs of prolonged escalation, Japan’s heavy reliance on Middle Eastern oil is driving a sharp surge in naphtha prices—an essential raw material for plastics—forcing manufacturers to implement unprecedented price hikes of over 30% while raising concerns that widespread cost increases and potential shortages across food packaging, medical supplies, and daily goods could intensify from May onward if supply disruptions persist.
As the impact of the effective closure of the Strait of Hormuz spreads, the government announced it will begin releasing national oil reserves from 11 bases across the country starting March 26th, in a move aimed at minimizing disruption to economic activity.
A surge in fuel prices is set to hit travel demand during Japan’s major holiday period, with airlines across Asia moving to raise fares and impose higher fuel surcharges, while in Japan, domestic carriers are maintaining current surcharge levels for now but are expected to implement significant fare increases from June onward, particularly during the peak summer travel season.
Two weeks after attacks on Iran triggered the closure of the Strait of Hormuz, turmoil has spread through the global economy, with rising gasoline prices already hitting consumers while a looming shortage of petrochemical materials threatens to drive up the cost of everyday goods.
The government has instructed domestic oil reserve bases to prepare for a possible release of stockpiled crude as tensions surrounding the Middle East raise concerns about energy supply and the broader industrial impact, including disruptions to ethylene production used in food packaging.
Japan's largest oil wholesaler says it will cease operations at a chemical materials factory around next October as competition in the industry intensifies. Eneos will seek to sell part of the plant to rival Idemitsu Kosan. (NHK)