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Naphtha Prices Overview

Market Overview

Quarterly Update on Global Naphtha Market

Asia

Supply remained tight in the third quarter of 2020 against the backdrop of

lower deep-sea arbitrage from west followed by several refinery turnarounds in

the US due to spate of seasonal Hurricanes.

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Naphtha Prices Overview

However, in the second half of the quarter, supply considerably eased as crude

oil futures tumbled to astonishing lows amid narrowed fuel demand under

consistent increment in coronavirus cases across the globe . Demand for light

Naphtha utilized in manufacturing of olefins remained stable to firm while that

of heavy Naphtha crippled on the back of volatility in the aromatics sector.

Demand pattern was articulated when spot cargoes for light Naphtha achieved

premium whereas heavy grade Naphtha received appreciable discounts.

Naphtha’s crack spread in Asia traced a downward trajectory from USD 62.73

per tonne to USD 56.60 per tonne in the beginning of August.

Europe

Naphtha values firmed in the second half of the third quarter supported by tight

supply from western countries on the backdrop of logistics disruption due to

US hurricanes. In addition, cuts in the operating rates balanced the supply

fundamentals and aided is maintaining the inventory levels. Prices of Naphtha

in Europe averaged around USD 951 per tonne, with a rise of 1 per cent since

July. Limited imports from the US provided room for European manufacturers

to extend their profit intakes amidst widened demand and supply gap.

However, supple inflows of cargoes from Russia and reduced arbitrage from

Asia marginally pressurized the market fundamentals in late September.

North America

In contrast to the market fundamentals of Naphtha across the globe, saturated

US market has made light Naphtha dive to its lowest level in the first week of

September from June. As the force measure caused by Hurricane Laura

negatively affected the export margins of various oil refiners, market players

eyed to make up for their loss by catering to the large export demand in late

September. However, few players showed resistance towards voyages to Asia

due to the volatile freight charges in the region.

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Naphtha Prices Overview

How we can help

ChemAnalyst addresses the key problematic areas and risks associated with

chemical and petrochemical business globally and enables the decision-maker

to make smart choices. It identifies and analyses factors such as geopolitical

risks, environmental risks, raw material availability, supply chain functionality,

disruption in technology and so on. It targets market volatility and ensures

clients navigate through challenges and pitfalls in an efficient and agile

manner. Timeliness and accuracy of data has been the core competency of

Chemanalyst, benefitting domestic as well as global industry in tuning in to the

real-time data points to execute multi-billion-dollar projects globally.

Methodology

ChemAnalyst gathers information through primary research surveys conducted

with various Naphtha manufacturers, spread across the domestic and

international market, suppliers and dealers/distributors to gain insights

into value-chains and demand-supply scenario to assess the market

situation. Thorough study of company’s annual reports and secondary sources

such as exhaustive search on credible paid databases, including our internal

database is done to verify the information. All the collected information is

analyzed, evaluated and presented in chronological order to depict a

meaningful and clear picture of the concerned market.

Our dedicated team of industry experts comprehensively monitors and

analyzes various aspects of the Global Naphtha market. The team analyzes

various industrial segments, strategic viewpoints and provides an analysis

of the industry’s performance in the long run. This would enable our clients in

efficiently plan their future investments, mitigate risk, understand the cost

dynamics and strike out a balance amidst market volatility.

Critical examination of the impact of COVID-19 pandemic on the global

supply chains and shift in demand patterns with change in buying behavior of

consumers across the globe.

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Naphtha Prices Overview

Several ongoing development projects across industries are tracked,

followed by the details of major projects in the development stage, which can

positively or negatively influence Global Naphtha market.

Pricing is captured through exhaustive primary interviews with domestic and

international manufacturers, traders and importers and customers on daily,

weekly, monthly and yearly basis.

Finally, region-specific markets for Naphtha are analyzed and region-wise

demand pattern is tracked.

About

Naphtha is a liquid hydrocarbon mixture, mainly utilized for gasoline blending,

reforming and petrochemical cracking. Naphtha can be categorized as Light

Paraffin Naphtha and Heavy Naphtha, depending upon the production method.

Since Light Naphtha is rich in olefins and boils at a comparatively lower

temperature than Heavy Naphtha, it is widely utilized to manufacture various

olefins/polyolefins like Propylene, Ethylene and others. Whereas Heavy

Naphtha, being rich in aromatic and naphthenic content, is efficiently utilized as

a feedstock for compounds such as Benzene, Toluene and others. It is also

used to increase the octane number in gasoline reforming. Naphtha solvent of

ideal properties is widely preferred for polymers, paint and coating and printing

applications. Naphtha is primarily produced by crude refining in a crude

distillation unit along with four other compounds namely light and heavy gas

oil, kerosene and atmospheric residue. Development of advanced technology

has enabled the production of Naphtha from gas to gas liquid processing and

condensate splitting.