Japan faces risk of plastic shortages

The Japan Petrochemical Industry Association has warned that raw material supplies for producing various plastics will last only three and a half to four months due to the Gulf crisis, according to foreign media.

Businesses are particularly concerned about dwindling naphtha stocks, essential for ethylene production, which is used in the automotive industry, consumer electronics, and food packaging. Japan’s naphtha reserves are down to just 20 days, with much of it imported from the Middle East.

In early March, major Japanese oil company Idemitsu Kosan warned it might halt ethylene production due to supply disruptions from the Middle East caused by the Strait of Hormuz blockade. The company accounts for roughly 16% of Japan’s ethylene output.

Other producers, according to the business newspaper Nikkei, may also need to reduce or suspend production if the Middle East conflict continues. Meanwhile, Japan maintains crude oil reserves for 254 days and has begun gradually selling them to stabilise gasoline prices.

By Jeyhun Aghazada