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Naphtha Prices Soften as Feedstock Competition Intensifies

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Published: January 1, 2026

Substitution Effect

The abundance of cheap NGLs has made LPG a more attractive feedstock than naphtha for many flexible crackers. This structural shift is weighing on naphtha demand.

Refining Surplus

Global refining overcapacity is also contributing to the naphtha glut. With limited demand from gasoline blenders, excess naphtha is accumulating in storage hubs.