Market Chatter: Japan Ramps Up Non-Middle East Naphtha Buying as Supply Tightens
Japan expects naphtha supply to remain stable through the year as buyers ramp up imports from outside the Middle East, Nikkei reported Friday, citing Prime Minister Sanae Takaichi.Supplies from the U.S., Algeria and Peru, along with domestic refining from stockpiled crude, are offsetting disruptions linked to the Iran conflict. Sourcing outside the Middle East is set to triple from pre-conflict levels, according to the report.Combined with about 1.8 months of intermediate chemical inventories, these flows should support supply beyond 2026, exceeding earlier government targets, the report said.Takaichi warned against excessive ordering and urged firms to align purchases with prior-year levels, while calling for efforts to ease logistics constraints during the Golden Week holiday, according to the report.Naphtha shortages, driven by disruptions around the Strait of Hormuz, have hit chemical supply chains, affecting products such as toluene and xylene used in paint thinners, 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.)