Financial Wire

Market Chatter: Naphtha Supply Fears Disrupt Japanese Manufacturers Despite Government Reassurances

-- Kansai Paint Co (TYO:4613) Despite official claims that Japan has enough naphtha for the next four months, many companies dependent on this oil derivative are halting orders or cutting production, Reuters News reported on Wednesday.

Manufacturers of thinner-based products, including Kansai Paint(TYO:4613), face legal limits on hazardous material storage and have already adjusted deliveries and raised prices, threatening downstream sectors from plastic toys to housing construction, the publication said.

A recent survey by the Japan Painting Contractors Association found that only 2.7% of firms can still obtain thinner as usual, underscoring widespread supply bottlenecks, the news wire said.

Over the past week, more than a dozen companies such as Toto(TYO:5332) and Asahi Kasei (TYO:3407) have reported delivery disruptions or price hikes due to difficulties procuring naphtha-derived adhesives, the report said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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