Commodities

Shortage of Naphtha Threatens Supply Chain Chaos in Japan

A naphtha cracker plant in Taiwan in 2008.

Photographer: Maurice Tsai/Bloomberg

For all the headlines about the looming shortage in crude oil, Japan faces a more immediate hit to its industrial supply chain from a little-known petroleum byproduct.

Multiple Japanese petrochemical firms have announced production cuts in recent days on worries that the Middle East conflict will strain supplies of naphtha, a vital component for plastic manufacturing.