Tokyo (ANTARA) - Japan\u2019s industrial performance in March fell\nslightly by 0.5% compared to the previous month, pressured by the\nconflict in the Middle East which affected chemical production due to\ndisruptions in raw material imports, according to government data\nreleased on Thursday (30\/4).<\/p>\n
This decline occurred after the revision of February\u2019s drop to 2.0%.\nThe Ministry of Economy, Trade and Industry maintained its basic\nassessment of industrial production, stating that conditions are\n\u201cfluctuating without a clear direction.\u201d<\/p>\n
Naphtha supplies, a vital material for producing chemicals widely\nused in manufactured products such as plastics and essential medical\nequipment, were disrupted due to the effective closure of the Strait of\nHormuz following the joint US and Israel attack on Iran on 28\nFebruary.<\/p>\n
In the reporting period, the inorganic and organic chemical sectors\nwere the largest contributors to the decline, contracting by 8.6%\ncompared to the previous month, triggered by falls in polyethylene,\nsynthetic rubber, and ethylene production.<\/p>\n
One ministry official added that routine inspections at naphtha\nrefining facilities, which caused domestic production capacity to drop\nby nearly 40% in March, also weakened ethylene production.<\/p>\n
Although that sector experienced a decline, the official stated, \u201cBy\nutilising inventories, shipments of major petrochemical products\nremained unchanged from the previous year, and supply levels were\nmaintained.\u201d<\/p>\n
Production of petroleum and coal products, including petrol, diesel,\nand naphtha, also fell by 7.7%. However, the official attributed this\ndrop to \u201ctechnical\u201d factors related to seasonal adjustments and denied\nany direct impact from the Middle East crisis.<\/p>\n
Automotive production also weakened slightly due to declining\nexports, in line with previous trade data showing reduced vehicle\nshipments to the Middle East region.<\/p>\n
\u201cWe do not see overall industrial performance weakening after the\nJanuary-March quarter average recorded an increase and manufacturing\nproduction plans indicate the index will rise in April and May,\u201d the\nministry said, adding that the Middle East situation remains uncertain\nand needs to be monitored.<\/p>\n
The seasonally adjusted production index for the manufacturing and\nmining sectors was recorded at 101.9, with a base of 100 for the year\n2020, according to the ministry\u2019s preliminary report.<\/p>\n
Based on a survey of producers, production performance is expected to\nrise by 2.1% in April and 2.2% in May.<\/p>\n
Economists predict that April\u2019s results will further reflect the\nimpact of the Middle East situation, with the Strait of Hormuz still\neffectively closed and disruptions in crude oil, naphtha, and fertiliser\nsupplies forcing some producers to halt order acceptances.<\/p>\n
The Japanese government stated it can maintain stable crude oil\nsupplies through the release of domestic reserves and alternative\nsources.<\/p>\n
However, significant downward pressure on production activities is\nexpected to continue because it is unclear when shipping routes in the\nstrait can return to normal, according to Takeshi Minami, chief\neconomist at Norinchukin Research Institute.<\/p>\n
In fiscal year 2025, industrial performance fell by 0.2% from the\nprevious year to 101.2, marking a decline for the fourth consecutive\nyear, reflecting the impact of higher tariffs imposed by US President\nDonald Trump, the official said.<\/p>\n
Source: Kyodo-OANA<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/middle-east-conflict-pressures-japanese-industry-performance-in-march-2026-1777531943", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }