Naphtha Prices

Naphtha Prices December 2023

The naphtha prices in the USA for Q4 2023 reached 563 USD/MT in December. In Q4 2023, the USA's naphtha market experienced a bearish trend, driven by falling crude oil prices, which made production more affordable. Despite stable demand, concerns over inflation control contributed to the price decline. The market faced potential transportation challenges due to winter conditions, but supply remained steady throughout the quarter, with no major disruptions.

The price trend for naphtha in Japan for Q4 2023 reached 650 USD/MT. Japan's naphtha market in Q4 2023 saw a slight price increase, primarily due to higher import costs from the West, despite the general decline in global crude oil prices. The market demonstrated a correlation between naphtha and crude oil prices, with seasonal factors also playing a role. The supply remained stable, with no major disruptions reported during the quarter.

In Netherlands, the price trend for naphtha reached 585 USD/MT Q4 2023. The Netherlands' naphtha market in Q4 2023 exhibited a bearish trend, marked by low demand and high supply, particularly from the downstream toluene sector. Despite variations in crude oil prices, the market faced a surplus stocking condition, leading to a decline in prices. Transportation challenges during winter further impacted demand, contributing to the overall bearish market sentiment.

The price of naphtha in Saudi Arabia reached 610 USD/MT during the fourth quarter of 2023. Saudi Arabia's naphtha market in Q4 2023 experienced a bullish trend, driven by OPEC+ production cuts to increase crude oil prices. This led to reduced naphtha supply and increased market activity. Despite stable supply conditions, the market saw a significant price increase, reflecting moderate demand from the downstream petrochemical industry and expectations of higher crude oil prices.

Naphtha Price Trend, Market Analysis, and News

IMARC’s newly published report, titled “Naphtha Pricing Report 2024: Price Trend, Chart, Market Analysis, News, Demand, Historical and Forecast Data,” offers an in-depth analysis of naphtha pricing, covering an analysis of global and regional market trends and the critical factors driving these price movements.

It encompasses an in-depth review of spot price of naphtha at major ports, a breakdown of prices including Ex Works, FOB, and CIF, alongside a region-wise dissection of naphtha price trend across North America, Europe, Asia Pacific, Latin America, the Middle East and Africa.

The report examines the elements influencing naphtha price fluctuations, such as changes in raw material costs, supply-demand dynamics, geopolitical factors, and industry-specific developments. Additionally, it integrates the latest market news, providing stakeholders with up-to-date information on market shifts, regulatory changes, and technological advancements, thereby offering a comprehensive overview that aids in strategic decision-making and forecasting.

Naphtha Market Analysis

The global naphtha market size reached US$ 170.6 Billion in 2023. By 2032, IMARC Group expects the market to reach US$ 222.1 Billion, at a projected CAGR of 2.90% during 2023-2032.

• The increasing demand for naphtha in petrochemical and refining industries for the production of various chemical products, including plastics and synthetic fibers, is fueling the market.
• The rising adoption of naphtha as a feedstock in the automotive sector for the production of gasoline and other fuels is driving market growth.
• The growing awareness of environmental sustainability is fueling the demand for eco-friendly naphtha products with reduced volatile organic compounds (VOCs).
• Continual advancements in naphtha production technologies and exploration activities for new naphtha sources are expected to further propel market expansion.
• The ongoing development of new naphtha-based products and formulations, tailored to meet specific industry needs and regulatory requirements, fosters innovation and market expansion.
• The favorable government policies and initiatives aimed at promoting domestic naphtha production, enhancing energy security, and fostering industrial growth play a crucial role in driving market development.
• The growing use of naphtha in the production of agricultural chemicals, fertilizers, and pharmaceuticals underscores its versatility and market significance.
• The expanding application of naphtha in the energy sector for power generation and as a fuel source for industrial furnaces and boilers contributes to market growth.
• The rising consumption of naphtha as a blending component in gasoline production, particularly in regions with stringent fuel quality standards, further drives market demand.
• The increasing adoption of naphtha as a solvent in the manufacturing and processing of consumer goods, such as paints, coatings, and adhesives, drives market growth.
• The rising trend of using lightweight materials in automotive and aerospace industries, where naphtha-based plastics and composites are widely used, boosts market demand.
• Rapid globalization of trade and the expansion of logistics networks facilitate the distribution and trade of naphtha across regions, supporting market growth.
• The growing emergence of new application areas for naphtha, such as in the production of renewable fuels and bio-based chemicals, presents opportunities for market expansion and diversification.
• The ongoing development of innovative naphtha-based technologies, such as steam cracking and catalytic reforming, enhances the efficiency and cost-effectiveness of naphtha processing, further driving market growth.

Naphtha News

The report covers the latest developments, updates, and trends impacting the global naphtha market, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, advancements in naphtha production technologies, strategic market expansions by key industry players, and significant mergers and acquisitions that impact the naphtha price trend.

Latest developments in the naphtha industry:

• In 2021, LG Chem has focused on environmental aspects by its latest ‘Sustainable Management Report,’ illustrated along with storytelling based on Carbon reduction, Circularity, and People. The report also includes plans for environmental-friendly products such as ecotrees and cetus, and roadmaps on how we will achieve our carbon-neutral growth by 2050, one of the strategies will be converting the NCC Plant's decomposition furnace to an electrolytic furnace and investing in carbon capture and utilization technologies.
• In 2024, Phillips 66 (NYSE: (PSX) achieved a key milestone in its conversion of the San Francisco refinery into the Rodeo Renewable Energy Complex, increasing production of renewable diesel to 30,000 barrels per day. The plant will be designed to increase production to over 0.8 billion gallons per year (50,000 BPD) by the end of the second quarter, so Phillips 66 can be a leader in renewable fuels.
• In March 2020, ExxonMobil, Georgia Tech and Imperial College London cooperate in producing research in Science of a novel membrane technology that breaks away Naphtha and kerosene molecules from light crude oil, thus emitting less chemicals and using less energy. ExxonMobil has had $10 billion toward lower-emission energy solutions since 2000 and is working with over 80 universities around the world.

Product Description

Naphtha is a sort of multi-functional hydrocarbon liquid that is used as a key feedstock in the chemical and refining industries. It is usually derived from crude oil refining process by using the fractional distillation method. This process is carried out by boiling the crude oil into different components based on their boiling points, with naphtha being one of the lighter fractions.

The function of naphtha is to act as the basic unit in the manufacture of many vital products such as plastics, drugs, fertilizers, and synthetic fabrics. In various sectors, its flexibility and availability make it an essential resource for industries across the world, creating economic prosperity and technological progress. Moreover, the advantages of naphtha go beyond manufacturing processes, as the efficient use of it results in the reduction of emissions and finally higher energy efficiency, which is in line with sustainable development goals.

Regional Coverage

The report provides a detailed analysis of the naphtha market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends, price forecast and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of ex-works, FOB, and CIF prices, as well as the key factors influencing the naphtha price trend.

Global Naphtha Price

The report offers a holistic view of the global naphtha pricing trends in the form of naphtha price charts, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level. This comprehensive analysis not only highlights the current price but also provides insights into naphtha historical price trends, enabling stakeholders to understand past fluctuations and their underlying causes.

The report also delves into naphtha price forecast models, projecting future price movements based on a variety of indicators such as expected changes in supply chain dynamics, anticipated policy shifts, and emerging market trends. By examining these factors, the report equips industry participants with the necessary tools to make informed strategic decisions, manage risks, and capitalize on market opportunities. Furthermore, it includes a detailed naphtha demand analysis, breaking down regional variations and identifying key drivers specific to each geographic market, thus offering a nuanced understanding of the global pricing landscape.

Europe Naphtha Price

The naphtha market in Europe during Q4 2023 was marked by a bearish trend, primarily driven by high supply levels and low demand from downstream industries. Despite fluctuations in crude oil prices, the market saw an overall surplus of naphtha, coinciding with reduced demand, particularly from the toluene sector. The bearish sentiment was further compounded by transportation challenges, particularly during winter, which hindered exports and impacted overall demand. The price trend remained downward, reflecting a significant decrease compared to the previous quarter. The market's bearish outlook was shaped by a combination of abundant supply, weak demand, and external factors like crude oil price fluctuations and transportation disruptions.

This analysis can be extended to include detailed naphtha price information for a comprehensive list of countries.

North America Naphtha Price

In Q4 2023, the naphtha market in the North America region faced a downward trend, influenced by several factors. The decline in crude oil prices worldwide made naphtha production more cost-effective, as the essential feedstock became cheaper. Despite stable demand for the product throughout the quarter, concerns about the Federal Reserve's capability to manage inflation contributed to a decrease in oil prices. The USA, in particular, experienced notable price fluctuations, with a significant drop compared to the same period the year before. Although supply remained steady, potential transportation challenges due to winter weather conditions posed risks. The quarter concluded without any reported plant shutdowns.

Specific naphtha historical data within the United States and Canada can also be provided.

Middle East and Africa Naphtha Price

In Q4 2023, the naphtha market in the Middle East and Africa region saw a steady upward trend owing to OPEC+ production cuts. These cuts led to a decreased supply of naphtha, which, contributed to a bullish market sentiment. In Saudi Arabia, this bullishness was reflected in active trading and purchasing activities, despite the market's overall stability in terms of supply. The region saw a significant increase in naphtha prices compared to the previous year, driven by expectations of higher upstream crude oil prices and stable demand. The quarter ended without any reported plant shutdowns.

In addition to region-wise data, information on naphtha prices for countries can also be provided.

Asia Pacific Naphtha Price

The Asia Pacific naphtha market in Q4 2023 exhibited a mix of trends across different countries. Despite a general decline in crude oil prices, Japan saw an uptick in naphtha prices, driven by higher import costs from the West. Meanwhile, India benefited from improved supply conditions as feedstock costs dropped, leading to a more stable market. In China, naphtha prices experienced only a slight decrease, as the region's supply was bolstered by increased OPEC exports, alleviating some of the supply constraints caused by geopolitical tensions in the region. The Japanese market, however, showed a correlation between naphtha and crude oil prices, with seasonal factors also playing a role.

This naphtha price analysis can be expanded to include a comprehensive list of countries within the region.

Latin America Naphtha Price

In Latin America, the naphtha market in Q4 2023 witnessed a consistent upward trend, particularly in Brazil, where prices were notably influenced by expensive imports. Despite the general increase in prices, the latter part of the quarter saw challenges, such as reduced demand and declining exports, which led to decreased factory production and a reduction in new orders. This downturn in purchasing activity and downsizing of inventories reflected the broader economic struggles in the region. However, there were positive signs of potential market recovery, as companies considered expanding their workforce.

This comprehensive review can be extended to include specific countries within the region.

Report Coverage

Key Benefits for Stakeholders:

• IMARC’s report presents a detailed analysis of naphtha pricing, covering global and regional trends, spot prices at key ports, and a breakdown of Ex Works, FOB, and CIF prices.
• The study examines factors affecting naphtha price trend, including raw material costs, supply-demand shifts, geopolitical impacts, and industry developments, offering insights for informed decision-making.
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning.
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights. The naphtha price charts ensure our clients remain at the forefront of the industry.