Naphtha Benchmark Prices Soften as Feedstock Switching Increases

Feedstock Competition and Substitution

The abundance of low-cost US NGLs has made LPG a more attractive alternative to naphtha for global chemical producers. This structural shift is weighing on naphtha demand, keeping prices near the bottom of their three-month range.

Refining Surplus and Blending Value

As gasoline prices fall, the blending value of naphtha has also declined. Refiners are seeing higher inventory builds in the light-end complex, further contributing to the bearish sentiment in the global naphtha market.