Naphtha markets in the United States firmed through March on a mix of logistics disruptions and downstream demand that tightened supply. Early March Strait of Hormuz disruptions steered buying toward US barrels, while mid-March seizures of competing feedstock constrained alternative inflows. Booming packaging plastics demand sustained activity, with industrial buyers in neighbouring regions lifting cargo volumes. By contrast, fuel and gasoline blending demand faded late in the month as remote work and mobility trends tempered blending requirements. The net result was a market on a firm footing heading into April, underpinned by packaging-plastics demand as a key support for volumes. Petrochemical feedstock use remained softer as crackers shifted toward lighter alternatives, while industrial activity in Mexico and Colombia provided additional offtake. Naphtha production remained skewed toward domestic output, with imports playing a smaller role. The outlook calls for a balanced mix of supply constraints and ongoing demand from packaging and industrial sectors, with upside tempered by feedstock substitutions and blending softness.
