The outlook for supplies?of thinners and cutting oils ¡ª materials used in the production of a wide range of products from chips to cars to planes ¡ª is becoming increasingly uncertain, according to a Japanese machine tool industry group.
There are no shortages now, but the prolonged conflict in the Middle East and the effective closure of the Strait of Hormuz could affect supplies in the future, said Shigetomo Sakamoto, president of Shibaura Machine and the head of the Japan Machine Tool Builders¡¯ Association.
While inventories?of the solvents and lubricants will not run out in the immediate future, "we are closely monitoring the situation,¡± he said. The Japanese government and companies are diversifying suppliers?and working to secure alternative sources of naphtha and other petroleum-derived products.
Shortages of thinners that were spurred by war in the Middle East have eased in recent weeks, Sakamoto said. The industry group will work with the Ministry of Economy, Trade and Industry to monitor the situation and ensure no shortage becomes a bottleneck in production, he said.
Separately, orders for Japanese machine tools in March rose 28% to a record ?193.5 billion ($1.2 billion), due in part to seasonal demand and a surge in orders following the Lunar New Year. Customers in China and other countries may have accelerated orders due to concerns about delivery times, Sakamoto said.
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