Nearly 70 percent of surveyed Japanese firms reported worsening difficulties in procuring naphtha and other oil products in May, attributing the challenges to heightened supply concerns and increased production costs stemming from Middle East tensions [1]. According to a survey conducted by a private research firm and released on Tuesday, chemical processing materials such as adhesives and paints were the most affected, with 29.6 percent of firms experiencing procurement difficulties, including delivery delays and supply shortages [1].
The survey, which was carried out from May 21-31 and included valid responses from 4,604 companies nationwide—spanning small and midsize firms—revealed that 32.6 percent of respondents said the impact had "further intensified," while 36.8 percent noted it had "somewhat intensified." In contrast, 18.4 percent reported "no major change," 2.0 percent said the impact had "somewhat weakened," and only 0.1 percent stated it had "significantly weakened" [1].
Packaging and logistics materials, including adhesive tape and plastic containers, were the second-most affected 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, were impacted in 6.8 percent of cases [1].
A Teikoku Databank official cautioned that prolonged uncertainty could lead to industry restructuring, noting that "some firms will find it difficult to cope through their own efforts alone" and suggesting that mergers involving financially stronger firms may occur as a result [1].
CONCLUSION
The survey highlights significant and worsening procurement challenges for Japanese firms, particularly in chemical processing and logistics materials, due to Middle East tensions. With nearly 70 percent of companies affected and industry restructuring on the horizon, the market impact is expected to be substantial. Continued uncertainty may drive consolidation among firms unable to manage supply disruptions independently.