Japan's chemical industry is turning to China for raw materials and petrochemicals as Middle East tensions disrupt naphtha supply, with imports of key plastics and intermediates surging in March. This shift signals a structural change in Asia's chemical supply chain that overseas buyers should monitor for pricing and sourcing implications.
Supply-chain impact
Japan's heavy reliance on Middle Eastern naphtha, which covers over 80% of domestic demand, has been severely affected by the near-blockade of the Strait of Hormuz. This has forced many Japanese petrochemical plants to cut production to minimum levels. In response, Japanese buyers have sharply increased imports from China, which benefits from a more diversified energy feedstock base including coal and ethane.
Key product import surges
In March, Japanese imports of high-density polyethylene (HDPE) from China rose approximately 170% year-on-year, while polystyrene imports increased 76%. Overall, imports of key plastics from China grew 27%. Japan also resumed purchases of butadiene—a critical raw material for tire production—importing 1.97 million kilograms in March after a three-year hiatus. Mixed xylene imports, used in solvents and paint thinners, resumed for the first time in six and a half years.
What buyers should watch
This growing Japanese dependence on Chinese chemical imports could become a structural challenge for Japan's domestic industry. Japanese producers, already optimizing capacity due to declining domestic demand, may face further restructuring if the trend consolidates. For overseas buyers, this shift may tighten Chinese export availability for other markets and alter regional pricing dynamics for HDPE, polystyrene, butadiene, and mixed xylene.
China sourcing context
Chinese chemical producers are leveraging their flexible feedstock capabilities to ramp up output amid the supply gap. This positions China as an increasingly important supplier for Northeast Asian markets, potentially reshaping traditional trade flows. Importers and distributors should evaluate how this rebalancing affects contract terms, lead times, and price benchmarks for these industrial chemicals.
Source: Read the original report | Published: April 29, 2026