Is the US Raffinate Market Ready for a Turnaround After July’s Consecutive Declines?

US Raffinate prices are remained under pressure during July 2026, driven by lower feedstock costs, comfortable Gulf Coast availability, and subdued downstream purchasing. The June decline was mainly attributed to weaker consumption from synthetic-rubber and tyre manufacturers, while distributors continued relying on inventories accumulated during spring restocking. Lower naphtha costs further reduced mixed C4 extraction expenses, giving producers greater flexibility to maintain competitive offers. Adequate supply, normal vessel movements, and stable chemical plant utilisation also prevented any significant tightening across the market. Looking ahead, Raffinate prices are projected to increase in August after consecutive declines during June and July. Tighter inventory positions, improving purchasing activity, firmer gasoline-blending operations, and potentially stronger MTBE production could support the recovery. A rebound in tyre and synthetic-rubber manufacturing may provide additional support. However, ample supply and potential geopolitical disruptions around the Strait of Hormuz could influence the pace of the anticipated recovery.