Global Heavy Aromatic Naphtha Solvent Prices blooming in line with the crude oil prices
- 18-Apr-2022 5:39 PM
- Journalist: Patricia Jose Perez
The global Heavy Aromatic Naphtha Solvent market has been witnessing strong market sentiments. The prices soared to record heights last week, with traders blaming the skyrocketing upstream Crude oil value and rising freight charges for this price increase across the overseas market.
The intensifying geopolitical tension between Russia and Ukraine has pushed the Crude prices to three-week highs. On Thursday evening, the US Brent Crude futures rose around 7 per cent to reach USD 111.7 per barrel, while the West Texas Intermediate (WTI) Crude climbed more than 6 per cent compared to the previous day and traded at USD 106.5 per barrel. On the other hand, the oil prices may fall slightly due to the International Energy Agency's stockpile release. Japan has decided on Friday to release 15 million barrels, of which 6 million barrels are being sourced from private reserves, while 9 million barrels will come from state reserves.
However, the soaring upstream Crude oil pricing has been a major headwind for various sectors, particularly the Crude derivative players. As per the latest assessment, the Heavy Aromatic Naphtha Solvent market has experienced increased offtakes in mid-April. A key global market player revealed that, despite healthy demand fundamentals in the regional market, the increasing raw material prices had become a concern to all the solvent manufacturers, prompting an increase in price to sustain their margins. According to the ChemAnalyst database, Heavy aromatic Naphtha Solvent, used majorly in the downstream agrochemicals, paints, and coatings, have, climbed approximately 4 per cent on Friday in the top Crude importing country, China.
As per the ChemAnalyst, "The Heavy Aromatic Naphtha Solvent prices will stay buoyant in the coming weeks due to the Crude oil price rise, impacting the Crude derivative sector. Additionally, there is no sign of demand contraction in the global market. The increasing oil prices are also the reason behind the rising transportation charges and costs of shipment.