Heavy Aromatic Naphtha Solvent Takes a Massive Hit as Crude Oil Surges
- 23-Mar-2022 5:27 PM
- Journalist: Patricia Jose Perez
The Global heavy Aromatic Naphtha solvent prices continue to soar by reaching around 4% this month, catching the chemical players off-guard. According to the Chemical Market Analysis, this sharp rise is owing to Russia’s invasion of Ukraine, which extremely affected the feedstock Petrochemical market, thus holding up the prices of crude-oil derived Heavy Aromatic Naphtha solvent at USD 907.18/MT in the Asia-Pacific region.
Racing feedstock Crude Oil prices on the back of acceleration tension between Ukraine and Russia, as per Petrochemical database, has become a matter of concern for numerous downstream producers as it has been the driving force for several commodity’s price rise along with Heavy Aromatic Naphtha solvent. On Wednesday, Crude oil futures turned high up and rose around 0.9%, reaching USD 116.54 per barrel, which increased the raw material input costs by approximately 50% for a wide range of industries across the global market. Saudi Arabia and the United States, the two nations with the ability to meaningfully offset the loss of Russia’s oil, have thus far refuged calls from nations with heavy consumption volumes to extend their supplies, hoping to knock down soaring oil prices.
As per ChemAnalyst, “the prices for Heavy Aromatic Naphtha solvent might stay buoyed throughout the first quarter of the FY22, the reason being sky-rocketing prices of feedstock Crude oil. Furthermore, the advancing automotive sector has increased requirements for the product’s application as a lubricant, motor oil, grease, polishes, paints, and coatings for automobiles which could create a demand-supply gap in the international market. If the war continues to aid this uptrend, the United States, Asian and Middle Eastern Ethane-based Ethylene derivative producers will have the upper hand over Naphtha-based producers because of the denting player’s confidence on account of bullish crude-based feedstock prices.”