Editor's Note
This editor’s note highlights the key facts and market implications behind “Why Is Japan’s ‘Naphtha Crisis’ Spreading?”, with emphasis on sourcing, product fit, fabrication, logistics, or buyer impact.
From fading pharmaceutical packaging and food trays, to urgent shortages of garbage bags and medical gloves, and further to construction materials like paint and asphalt causing project delays or even stoppages—a crisis triggered by naphtha shortages is spreading across Japan, affecting various aspects of the economy and social life.
According to Xinhua News Agency, why is naphtha so important? How severe is Japan's 'naphtha crisis'? What is the root cause of the crisis?
How Important Is Naphtha?
Naphtha is a key byproduct of crude oil refining, serving not only as a core basic raw material for modern manufacturing and chemical industries but also as a critical upstream material in the semiconductor industry chain.
Through cracking, naphtha generates basic chemical raw materials such as ethylene, propylene, and butadiene, which then extend downstream into plastics, synthetic fibers, synthetic rubber, paints, adhesives, surfactants, and pharmaceutical intermediates. Simply put, from clothing, phone cases, and garbage bags to food packaging, medical consumables, automotive interiors, and building materials, everyday life is almost inseparable from it. Once naphtha supply decreases or is interrupted, numerous downstream related industries will be affected.
Japan is highly dependent on energy imports. As of the end of February, its dependence on Middle Eastern crude oil approached 95%, and over 40% of its naphtha consumption also requires imports from the Middle East. Due to the ongoing Middle East conflicts and the persistent 'blockage' of shipping through the Strait of Hormuz, Japan's imports of crude oil and naphtha have stalled.
The latest trade statistics released by Japan's Ministry of Finance show that in April, Japan's crude oil imports fell by 63.7% year-on-year, hitting the lowest monthly level since 1979, with a significant decline in imports from the Middle East; the import price of crude oil in that month rose by 37.9% year-on-year, setting a new record since comparable data began in 1979. According to statistics from market service firm IHS Markit, Japan's imports of petroleum products including naphtha fell by about 30% month-on-month in March, with further declines in April.
The latest opinion poll by Kyodo News shows that 70.6% of Japanese respondents directly stated they 'feel uneasy' due to insufficient naphtha supply.
Source: Read the original article | Published: May 23, 2026