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Naphtha Prices Drift Lower as Feedstock Competition Remains Intense

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Published: January 23, 2026

Substitution Effect

Asian crackers are maximizing their intake of propane and butane, which are trading at a discount to naphtha. This structural shift is keeping a lid on naphtha demand growth.

Supply Overhang

Refineries are producing ample naphtha as a byproduct of meeting diesel demand. With gasoline blending demand seasonally low, this supply is weighing on the market.