Japan moves to secure petrochemical supply after fiscal 2026
Prime Minister Sanae Takaichi says Japan will lift toluene supply and build direct channels to ease shortages in paints, thinners and plastic materials.
- The Japanese government has affirmed its ability to continue supplying petrochemical products made from naphtha after fiscal 2026.
- To address distribution bottlenecks for products like paints and thinners, the government will increase supplies of raw materials, such as toluene, to 1.8 times normal levels.
- A new direct distribution route will be created to connect petrochemical producers and oil distributors with manufacturers to improve supply chain efficiency.
- Japan's naphtha supply has already recovered to approximately 85% of pre-crisis levels through domestic refining and alternative sourcing.
Japan can continue supplying petrochemical products made from naphtha after fiscal 2026, which ends in March next year, Prime Minister Sanae Takaichi said at a ministerial meeting on the Middle East situation.
Speaking at the meeting on Tuesday (June 2), Takaichi said the government would respond to distribution bottlenecks affecting paints and thinners by raising supplies of raw materials, including toluene, to as much as 1.8 times normal levels.
Japan’s naphtha supply has recovered to around 85 per cent of pre-Middle East crisis levels through domestic refining and alternative procurement, she said.
Imports of intermediate products, including polyethene, have also increased, helping slow the drawdown of inventories in April, Takaichi added.
To increase supplies of toluene and other materials, the government will create a direct distribution route connecting petrochemical producers and oil distributors with thinner and paint manufacturers.
This will operate alongside existing channels through trading houses.
“We will ensure that supplies reach even small building contractors in every region,” Takaichi said.
She also directed relevant ministers to focus on removing distribution bottlenecks for plastic materials used by horticultural growers.
[Copyright The Jiji Press, Ltd.]
