The “naphtha shortage” triggered by escalating tensions in the Middle East is now spreading into Japan’s housing industry, with shortages of paint, thinner, insulation materials and other building products forcing construction delays across the country.
Rising tensions surrounding the closure of the Strait of Hormuz are beginning to ripple through Japan’s economy, with higher energy costs and shortages of petroleum-based materials threatening to accelerate inflation just as the country heads into another extremely hot summer.
Construction projects across Japan are being suspended as shortages of paint, thinner and waterproofing materials linked to worsening tensions in the Middle East place mounting pressure on small and midsize builders, with some contractors warning they may soon be forced out of business.
The crude oil tanker "Idemitsu Maru," which passed through the Strait of Hormuz, is scheduled to arrive at Nagoya Port around noon on May 25th, drawing attention as Japan faces a sharp decline in crude imports from the Middle East following the effective closure of the strategic waterway.
Japan’s imports of crude oil from the Middle East plunged 67.2% in April from a year earlier, as the impact of the effective closure of the Strait of Hormuz began to ripple through the country’s trade and energy supply chains.
TOTO, a major Japanese manufacturer of housing and bathroom equipment, reopened its showroom in London, England, on May 20th after undergoing its first major renovation in 16 years.