The Japanese government is urging companies not to hold back supply of critical materials and components in anticipation of possible shortages related to the conflict in the Middle East. It notes that disruptions are occurring well before scarcity exists in the market.
“Under the understanding that overall supply is sufficient, we will continue to steadily eliminate bottlenecks in distribution one by one,” industry minister Ryosei Akazawa said Tuesday.
Wholesalers acting ahead of expected shortages may withhold stock or prioritize key customers, effectively tightening supply, the government argues. Once the effect propagates through multiple layers, shortages emerge even when inventories are sufficient.