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Naphtha Benchmark Prices Soften on Feedstock Competition and Refining Surplus

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Published: January 19, 2026

Feedstock Substitution

Modern crackers are shifting away from naphtha when LPG prices drop. This substitution is particularly evident in Asia, where the glut of US NGLs provides a cost-effective alternative for plastics production.

Refining Backlog

As global gasoline demand slows, the byproduct supply of naphtha from refineries is becoming an inventory burden, contributing to the bearish sentiment.