Naphtha Prices Slide on Weak Refining Margins and Feedstock Switching

Feedstock Substitution Pressure

Petrochemical crackers in South Korea and China are undergoing significant restructuring, cutting naphtha-cracking capacity in favor of high-value, light-end feedstocks. This transition is aimed at improving margins in an oversupplied plastics market.

Global Refining Overhaul

Major Asian refiners are retiring older naphtha-based units as they pivot toward renewable energy and electronics-grade chemicals. This consolidation is shrinking the independent supply of naphtha but also reducing its overall demand in the global chemical chain.