Naphtha Benchmark Prices Soften as Feedstock Competition Intensifies

Feedstock Substitution Trends

Modern crackers are now more flexible than ever, allowing them to shift away from naphtha when propane or butane prices drop. This substitution is particularly evident in the Asian market, where the glut of NGLs from the Americas is providing a cost-effective alternative.

Refining Margin Pressure

As global gasoline demand slows, the byproduct supply of naphtha from refineries is becoming an inventory burden. This surplus is weighing on benchmark prices, even as the broader aromatics complex remains somewhat tighter due to refinery maintenance.