Japan's naphtha imports in April plunged by 47%, with imports from the Middle East falling 79%, putting pressure on the chemical supply chain

⑴ Data from Japan's Ministry of Finance on Thursday showed that in April, Japan's imports of petroleum-derived naphtha fell 47% year-on-year to 1.14 million kiloliters. Imports from the Middle East plummeted by 79.1%, recording only 341,700 kiloliters, with its share of total imports dropping sharply from about 70% to 30%. ⑵ Regional conflicts have led to severe disruptions in shipping through the Strait of Hormuz, a key global oil transportation route. To make up for the shortfall, Japan's naphtha imports from other regions surged by 52.4% year-on-year. ⑶ Naphtha is a crucial raw material for the chemical industry and is widely used in products such as plastics, adhesives, and solvents in coatings and paints. The tight supply is impacting various sectors in resource-poor Japan. According to reports, several food and beverage companies, including major brands, have been forced to simplify product packaging designs and raise prices due to the tightening supply of key raw materials such as naphtha.