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.
Foreign Minister Toshimitsu Motegi held telephone talks on the night of April 15 with Iranian Foreign Minister Abbas Araghchi, conveying Japan’s hopes for the resumption of ceasefire talks between the United States and Iran and for an early agreement.
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.
More than 80% of companies in Japan’s Kyushu and Okinawa regions say they are experiencing negative impacts from the ongoing situation in the Middle East, according to a survey released by Tokyo Shoko Research on April 13th.
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.