For the Quarter Ending March 2022
North America
Heavy Aromatic Naphtha Solvent prices in the North American region have stayed buoyant throughout the first quarter of 2022 on the back of soaring upstream crude value. The increased raw material costs became a burden when the West Texas Intermediate (WTI) crude prices reached their record heights, costing more than USD 123 per barrel on March 8th, pressuring the downstream solvent players. To sustain their margins, the regional manufacturers implemented frequent price revisions in the region. However, stable demand fundamentals kept the Heavy Aromatic Naphtha Solvent prices from rising further in the domestic market. Accordingly, the United States price discussions for the solvent closed between USD 910 per MT towards the quarter ending March.
Asia Pacific
Taking pressure from skyrocketing upstream crude value, Heavy Aromatic Naphtha Solvent prices traced uphill during the first quarter in the Asian market. Rising crude oil value has been a matter of concern for all the downstream players, as it’s triggering a precipitous rise in prices of various commodities, including Heavy Aromatic Naphtha Solvent, across regional market. Meanwhile, demand fundamentals for the product with the increasing technological advances in the automotive sector have encouraged this uptrend across the regional market. Conclusively, the Chinese Heavy Aromatic Naphtha Solvent prices in Asia were sky high by mid-March, which later traced downhill and was assessed as USD 1320/MT in the quarter-end.
Europe
During the first quarter, the Heavy Aromatic Naphtha Solvent prices remained strong taking support from the soared upstream value. Crude oil began the year on a firm note while prices were assessed as USD 80-90 per barrel. However, Russia’s invasion of Ukraine aggravated market dynamics worldwide. Consequently, Brent crude prices went haywire, touching USD 128 per barrel in March. Thus, the derivative Heavy Aromatic Naphtha Solvent prices in the regional market broke charts this quarter, and production costs increased substantially. At the same time, the solvent supplies were tightened in the downstream Automobile sector. Hence, after the conclusion of the first quarter of 2022, solvent prices including Heavy Aromatic Naphtha witnessed a hike of 8-12% across the European market.
For the quarter Ending December 2021
North America
Significant fluctuations have been observed for Heavy aromatic naphtha solvent across US market during Q4 2021. Demand fundamentals maintained overall stability throughout the quarter, while rising input cost kept on pressuring domestic convertors. It was observed that price rose effectively during October and November, on the back of high upstream crude oil value amidst consistent escalation in domestic demand pattern. Furthermore, Crude oil value tumbled effectively during the November, consequently naphtha solvent also went down initially during December and later started rising inline upstream cost. Conclusively, Heavy Aromatic Naphtha Solvent kept on oscillating throughout the quarter and an increment of around 3% was observed during October-November month in US market, where prices fluctuated between USD 800/MT to USD 850/MT across the region.
Asia
Mixed market sentiments were observed for Heavy Aromatic Naphtha Solvent across Asian market during this quarter. Marginal fluctuations were observed for Heavy Aromatic Naphtha Solvent in India throughout Q4 2021, as the demand form the domestic market remained stable from the downstream sector till November, which later decline during December due to demand dullness induced after festivities in India. Heavy Aromatic Naphtha Solvent revolved around USD 3922/MT during October. Meanwhile, Chinese market witnessed ample availability for the product across domestic market throughout this period, while demand fundamentals also remained marginally dull after imposed production cuts in the country.
Europe
Naphtha solvent demand across European market remained stable throughout the quarter, as the market heard going through a consistent bounce back in economic activities. Furthermore, enormous surge in energy cost remained a major concern for key players, as despite of easing crude value production cost getting expensive week over week in the regional market. In addition, logistical issues also remained persistent during this timeframe, which eventually resisted the actual economic growth of the region. However, traders heard seeking cheaper cargoes from regional market in the meantime, to counterbalance the overall supply issue. Conclusively, prices heard hovering around USD 915/MT during November in European market.
During the 3rd quarter of 2021, the prices of Heavy Aromatic Naphtha have been on an uptrend owing to an increase in prices of crude oil. The OPEC+ decision to cut down production of crude had specifically impacted the availability of heavier crudes which are crucial for greater outputs of Naphtha. Refinery shutdowns in the US Gulf coast during the hurricane season had further impacted supply and led to a sharp spike in prices during the month of September. No immediate relief in prices can be expected as the prices of crude continue their upward surge even into Q4.
In the Asia Pacific region, the overall market outlook of Heavy Aromatic Naphtha showcased an upward trajectory in Q3 2021. An upturn in the prices of Heavy Aromatic Naphtha during the 3rd quarter came in the backdrop of firm crude oil prices in the Chinese domestic market. Demand also increased as the key Asian economies recovered after containing delta variant cases. Increased price for crude oil remained in the Asia Pacific region backed by active purchases by the downstream sectors supported the uptrend in bulk pricing.
The European market witnessed a substantial rise in the pricing trend of Heavy Aromatic Naphtha in Q3 2021 on the back of increasing crude oil prices across the region. In terms of supply, it has been termed as tight for Q3 in Europe where demand for Naphtha witnessed a significant rise as market participants moved from costly LPG to Naphtha. Tight supply also meant that there was a decreased flow of arbitrage from Europe to Asia. Furthermore, firm crude prices kept upward pressure on the prices of Heavy Aromatic Naphtha solvent in major European markets.
