TOKYO - A shortage of naphtha, a key petrochemical feedstock used in a wide range of products, is pushing up the cost of housing materials in Japan and raising concerns that home prices could climb by as much as 30%.
Businesses across multiple industries say petroleum-based products are no longer arriving in sufficient quantities, while delays in supplies are beginning to disrupt operations from supermarkets to home construction sites.
The government has stressed that the issue is one of temporary distribution bottlenecks rather than an overall lack of supply. But companies on the ground say the situation remains severe.
Even everyday household goods are being affected. Supermarkets have been notified of price increases for plastic wrap, gloves and trays, forcing retailers to cut costs where possible, including reducing decorative plastic packaging.
The impact is particularly acute in the housing sector.
At one exterior wall renovation site, work was halted because sealant materials had not arrived. At another property requiring urgent roof leak repairs, a shortage of waterproof sheeting forced construction to stop.
Contractors warn that if materials cannot be secured soon, some firms may have no choice but to suspend operations.
Naphtha, produced from crude oil, is used extensively in residential construction. It is found in gutters, drainage systems, adhesives beneath tiles, wallpaper, switch plates, insulation and plumbing materials.
Builders say notices of price hikes and shipping restrictions are arriving one after another from suppliers.
One company reported that waterproof sheeting used beneath roofs is set to rise 50%, while insulation installed under floors has already been marked for a 40% increase.
Manufacturers of housing equipment have also begun suspending new orders for some unit baths, creating further delays in home completions.
Industry executives say supply chain disruptions in one area quickly spread to the rest of the sector.
One housing company said it plans to absorb higher material costs until June, but may pass them on to customers afterward.
'We think housing prices could rise by around 20% to 30%,' a company representative said. 'No one can predict what comes next.'
The government maintains that Japan has secured the necessary volumes of crude oil and petroleum products, including naphtha.
Economy minister Ryosei Akazawa said the shortages stem mainly from congestion in distribution channels and that coordination among suppliers should ease the bottlenecks nationwide.
However, trade groups remain unconvinced.
Representatives of the coatings industry said only about 3% of companies were able to procure thinner products used in paint applications through normal channels.
Analysts note that even if logistical bottlenecks are resolved, uncertainty over global crude supply and higher import prices could keep costs elevated for an extended period.
The impact may spread well beyond housing. Rising fertilizer prices could feed through to food costs, while small and midsize manufacturers may struggle to continue operations if they cannot absorb further increases.
Critics have also called on the government to provide clearer guidance.
Industry leaders say businesses need a concrete timeline—such as whether shortages may ease by June or July—rather than repeated assurances that the situation is under control.
Japan imports roughly 40% of its naphtha needs from the Middle East. With those supplies disrupted, companies warn that relying on inventories and emergency procurement alone may not offer a lasting solution.
Source: TBS
