TOKYO - 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.
The chairman of the Japan Shipowners’ Association, Yasuhiro Shinohara, said the failure of ceasefire negotiations has dealt a significant blow to seafarers, adding that uncertainty has deepened due to what he described as a U.S.-led “counter-blockade.”
“Since the effective blockade on February 28th, nearly 50 days have passed. Ships were originally scheduled for round trips between Japan and the Persian Gulf in about 40 days, so urgent action is needed to secure their release,” Shinohara said.
The prolonged delay of vessels has heightened concerns over the procurement of naphtha, a petroleum-derived feedstock essential for producing plastic products and paints that are widely used in daily life.
Major chemical manufacturer Asahi Kasei said on April 15th that it has secured a supply outlook for naphtha through around mid- to late June, and plans to diversify procurement sources going forward.
However, the sharp rise in naphtha prices remains a serious concern.
Asahi Kasei, which produces a wide range of goods from its Hebel Haus housing brand to household items such as Saran Wrap, expects that price increases across its product lineup will become unavoidable.
President Koshiro Kudo said, “There are many areas where we will have to ask for price pass-throughs. Otherwise, the business itself will no longer be viable.”
Source: TBS
