The War-Driven Supply Shock Already Roiling Manufacturing in Asia
The New York Times • • business
Key Points:
- Asian countries, particularly Japan and South Korea, are facing a severe shortage of naphtha, a key petroleum derivative used in numerous products ranging from plastic wrap to medical devices.
- The shortage is linked to the ongoing blockade of the Strait of Hormuz, which has lasted over two months and disrupted exports from major suppliers like Qatar and Kuwait.
- The blockade has caused industrial disruptions beyond the initial concerns over crude oil and gasoline price spikes, highlighting vulnerabilities in supply chains reliant on the Strait of Hormuz.
- Even naphtha processed locally in Asian refineries depends on crude oil transported through the strait, exacerbating the supply challenges in the region.