Middle East Tensions Raise Concerns Over Synthetic Rubber Supply for Automotive Industry
Concerns over the procurement of synthetic rubber are growing as escalating tensions in the Middle East threaten logistics and raw material supply chains critical to the global automotive industry.
Synthetic rubber is widely used to provide special performance characteristics for products such as automobile tires, including heat resistance, road adaptability, and friction durability. However, some suppliers have begun warning of possible production cuts or shipment adjustments in response to the worsening situation in Iran.
An executive at a rubber trading company stated that the deteriorating situation in the Middle East is “causing logistics to stagnate and disrupting procurement for synthetic rubber manufacturers.” While the industry typically maintains around three months of inventory, some specialty grades used for automotive tires and industrial gaskets are reportedly down to approximately one and a half months of stock.
The executive also warned that a prolonged blockade of the Strait of Hormuz could eventually lead to reductions in automobile production.
Japanese Petrochemical Companies Closely Monitor Raw Material Risks
Asahi Kasei Corporation, which supplies synthetic rubber products such as SEBS and SBS for automotive tires, stated that it currently maintains a certain level of inventory due to scheduled maintenance at domestic manufacturing facilities.
However, the company also expressed concern that continued production cuts at ethylene cracker facilities could force partial production reductions after maintenance is completed.
Meanwhile, ENEOS Materials Corporation revealed that it has begun notifying customers individually regarding shipment adjustments for products expected to face supply disruptions.
Nippon Zeon Co., Ltd. and UBE Corporation stated that they have not experienced significant impacts so far but continue to closely monitor the situation.
Japan Diversifies Naphtha Procurement to Reduce Middle East Dependency
Synthetic rubber is produced from naphtha, a petroleum-derived feedstock, prompting Japanese chemical manufacturers to diversify procurement sources amid growing geopolitical risks.
Mitsui Chemicals, Inc. and Mitsubishi Chemical Group Corporation have started sourcing naphtha from regions outside the Middle East.
The Japanese government has also strengthened measures related to crude oil and fuel distribution, stating that while Japan’s overall crude oil supply remains stable, bottlenecks have emerged in the distribution stage.
Authorities have requested major oil wholesalers to maintain supply levels comparable to the previous year and have introduced additional direct distribution routes to key facilities.
Industry analysts believe that if disruptions in the Strait of Hormuz continue, maintaining supply chain stability will depend heavily on coordination between government agencies and private companies, as well as the rapid resolution of logistics bottlenecks.
Source: Nikkan Kogyo Shimbun
