Naphtha shortage affects multiple industries in Japan: packaging material prices rise, medical supplies under pressure

Due to the ongoing conflict in the Middle East and persistent shipping "obstructions" in the Strait of Hormuz, Japan is currently experiencing a shortage of naphtha. Multiple industries are being affected, from urgent shortages of garbage bags and medical gloves, to tightening supplies of construction materials causing projects to halt. A crisis triggered by the naphtha shortage is spreading across Japan.

The naphtha shortage is continuously pushing up the prices of plastic packaging materials and printing inks. At a Japanese surimi processing store, the price of individual vacuum packaging bags has risen from about 15 yen to around 18 yen. Due to the rising costs of packaging materials, Japan may face another "wave of food price hikes" starting in June.

Person in charge of a Japanese fish product processing store, Masato Shoji: All our dried fish are vacuum packed, and these packages are getting more expensive now because all raw materials rely on naphtha. Our business is on the verge of being unsustainable.

The impact goes far beyond just food packaging. Many regions in Japan are facing acute shortages of garbage bags, especially designated bags used for garbage sorting, which are now almost out of stock. At a designated garbage bag store in Shizuoka City, empty shelves display a notice apologizing for the out-of-stock situation.

Customer: I went to four stores and none had them. I'm really at a loss. That day was exactly garbage day, I took out my trash, and the last garbage bag was used up. I didn't know what to do, so I contacted a friend, who said she had also checked three stores but couldn't buy any. I'm honestly scared, something needs to be done quickly.

Local journalists surveyed dozens of supermarkets, drugstores, and convenience stores in Shizuoka City that sell designated garbage bags. The results showed that 30 out of 35 stores were sold out. On second-hand trading websites, there have been cases of designated garbage bags being resold at high prices, with market-priced bags of about 500 yen per bag being sold at 5,000 yen for three bags. From May 20, Shizuoka City has begun implementing temporary measures allowing the use of non-designated bags for trash disposal.

Insulation materials, coatings, and other construction materials used in the construction industry are also highly dependent on naphtha. The worsening shortage of construction materials is not only significantly raising project costs but also leading to delayed or halted construction projects.

President of a Japanese construction company, Takashi Saito: The exterior walls are still unfinished. Under normal circumstances, after the main structure is completed and preparations are done, the walls can be applied immediately. But now it should have been finished; however, there is a material called sealant that is simply unavailable. This is a rubber-like material used to fill gaps in exterior walls, and it's now out of stock.

In addition, naphtha is also a fundamental material for medical supplies such as medical syringes, catheters, and infusion bags. Its shortage is placing heavy pressure on Japan's supply of medical goods. Japanese government data shows that as of the end of April, nearly 5,000 medical institutions across Japan have experienced shortages of medical supplies.

Japanese sources reveal that the "naphtha crisis" has exposed longstanding structural vulnerabilities in Japan's energy and petrochemical systems. Due to the ongoing Middle East conflict and persistent shipping obstructions in the Strait of Hormuz, Japan’s imports of crude oil and naphtha have come to a standstill.