Feedstock Economics
As propane prices drop, naphtha is facing some competition as a feedstock. However, for crackers focused on propylene and aromatics production, naphtha remains the essential input, keeping demand robust.
Shipping Surcharges
Reductions in Western arbitrage flows to Asia due to Middle East shipping risks are creating localized tightness. Premiums for March delivery cargoes have increased by 5% this week alone.