Japan naphtha procurement woes worsen for 70% of firms: survey

TOKYO — Nearly 70 percent of surveyed Japanese firms reported worsening difficulties procuring naphtha and other oil products in May, citing Middle East tensions that raised supply concerns and production costs, according to a private research firm.

The survey, released Tuesday, found that chemical processing materials, such as adhesives and paints, were the hardest-hit products, with 29.6 percent of firms reporting procurement difficulties, including delivery delays and supply shortages.

A Teikoku Databank official warned that prolonged uncertainty could spur industry restructuring, saying "some firms will find it difficult to cope through their own efforts alone" and that mergers involving financially stronger firms may follow.

As of May, 32.6 percent of firms said the impact had "further intensified," while 36.8 percent said it had "somewhat intensified."

Another 18.4 percent reported "no major change," while 2.0 percent said the impact had "somewhat weakened" and 0.1 percent said it had "significantly weakened."

Following chemical processing materials, packaging and logistics materials, including adhesive tape and plastic containers, were the second-most affected product category, with 20.2 percent of firms reporting procurement difficulties. Equipment, construction and electronic components, such as PVC pipes and insulation materials, followed at 13.9 percent, while fuel and energy-related products, including gasoline and diesel, stood at 6.8 percent.

The survey was conducted May 21-31 and received valid responses from 4,604 companies nationwide, including small and midsize firms.

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