Concerns over the stable supply of naphtha, a petroleum product used as a raw material for plastics and synthetic resins, are spreading due to recent developments in the Middle East, particularly heightened uncertainty regarding navigation through the Strait of Hormuz [1]. This has led to moves among domestic chemical manufacturers to reduce production and consider price increases for products that rely on naphtha as a raw material [1].
A representative from a major chemical manufacturer stated that rising procurement costs are unavoidable, and transferring these costs to product prices is being considered as a necessary measure [1]. The market is closely watching future price trends, with attention focused on how changes in the Middle East situation and supply systems may impact naphtha prices [1].
Experts note that, while there is currently no significant disruption, there is a possibility that naphtha prices could surge and related product price hikes could occur in succession if the situation deteriorates [1].
CONCLUSION
The current supply concerns surrounding naphtha have prompted production cuts and potential price hikes among chemical manufacturers, with market participants closely monitoring developments in the Middle East. While no major disruptions have occurred yet, experts warn that further instability could lead to rapid price increases and broader impacts on related products.