India’s Naphtha Demand Regains Momentum, Records Highest in the Last Four Months
Latest hydrocarbon statistics revealed by Petroleum Planning and Analysis Cell (PPAC) depicted that India’s Naphtha consumption reached four-months high around 1.284 million metric tonne in July. Country’s Naphtha consumption rose 10% higher on month on month basis while it declined by 12.4% on a year on year basis in July. Analysts predict that in addition to improving demand from the gasoline blending sector, rising demand from the petrochemical producers for serving industries such as medical plastics and equipment quintessentially required in the nation’s battle against COVID-19 has further helped in overcoming the persistent market dullness. India’s recent switch to new gasoline standards in 2020 is further expected to give a boost to the country’s demand for Naphtha. Furthermore, abrupt growth in the domestic demand has triggered significant reduction in the volumes of Naphtha exported by the local refiners. India’s Naphtha exports remained significantly low in June and July, with volume hitting 11-month low in June as per the PPAC data. While India's Naphtha demand is projected to grow with rising appetite from the transportation sector, increased use of olefins and polyolefins across several downstream industries will further aid the market growth. India’s Naphtha rebounded strongly post May, with the prices remaining largely above the $640 per metric tonne mark since then, ChemAnalyst data showed. Some of the major players operating in the country's Naphtha market are Reliance Industries Limited (RIL), Bharat Petroleum Corporation Limited (BPCL), Gail (India) Limited, Indian oil Corporation Limited (IOCL) , Hindustan Petroleum Corporation Limited (HPCL), Oil and Natural Gas Corporation Limited (ONGC), etc.