Nearly 70% of Japanese Firms Say Oil Price Hikes Intensify Business Pressures, Uneven Supply Chain Inventories Spark Procurement Challenges

According to a survey released on June 23 by Teikoku Databank, Japan, 69.4% of the 4,604 companies surveyed in late May reported that rising prices of petroleum products such as naphtha have further worsened their business conditions compared to the March–April period. Specifically, 32.6% said the impact had "further intensified," while 36.8% indicated it had "somewhat intensified." Among affected companies, 83.9% cited rising costs of raw materials and components, 73.0% noted declining procurement stability or increased difficulty in sourcing supplies, and 50.2% reported longer procurement lead times. By supply chain segment, upstream and primary processing firms maintained relatively adequate inventories, whereas midstream businesses—such as wholesalers and distributors—held average inventories sufficient for only 39 days. Downstream industries showed the lowest stock levels, with the construction sector holding the least inventory—enough for just 24 days on average. Although there has not yet been a widespread supply disruption of naphtha-derived products, uneven inventory distribution has already created "bottlenecks" in certain raw material procurement channels, potentially disrupting normal production in related industries.