Japan's small and midsize enterprises are struggling with severe shortages of materials like naphtha due to the prolonged conflict in Iran, revealing a growing strain on their operations, Nikkei reported on Tuesday.
For instance, Terano Technology has received only 10%-20% of the resin it needs, causing revenues to plummet to under 10% of last year's levels, while Sanwa Chemical faces supplier restrictions on oils and additives, the news daily said.
Smaller firms are especially vulnerable due to their smaller purchasing volumes, limited storage space, and inconsistent deliveries, prompting roughly 10 weekly reports of shipping restrictions to the Small and Medium Enterprise Agency, the publication said.
Even when supplies are available, passing on higher costs is tough. Kobashi Printing saw raw material prices jump 40% but can only raise its own prices by roughly 10% for fear of losing customers, the report said.
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