For the Quarter Ending June 2025
North America
• The Heavy Aromatic Naphtha Solvent Price Index in the U.S. declined significantly in Q2 2025, reflecting weaker demand and softening crude benchmarks.
• In April and May, downstream consumption from coatings and adhesives sectors slowed due to reduced industrial activity and softer petrochemical margins.
• By June 2025, price pressure continued as inventories increased amid modest refining throughput and cautious procurement.
• The Heavy Aromatic Naphtha Solvent Production Cost Trend eased, supported by lower Brent crude-linked feedstock costs and reduced logistic charges.
• The Heavy Aromatic Naphtha Solvent Demand Outlook remained cautious for Q3, particularly from coatings and chemical end-use segments.
Why did the price of Heavy Aromatic Naphtha Solvent change in July 2025 in North America?
• In July 2025, the Price Index was weak as refinery margins remained tight and demand from coatings and adhesives stayed muted.
• The Q3 Heavy Aromatic Naphtha Solvent Price Forecast suggests continued bearishness in pricing unless refinery runs, or downstream activity improves.
APAC
• The Heavy Aromatic Naphtha Solvent Price Index in India declined steadily through Q2 2025, influenced by falling crude oil prices and low industrial activity across key consuming sectors.
• In April, prices dropped as inventory build-up from the previous quarter met sluggish demand from the paints and coatings industry.
• May saw further decline amid limited offtake from ink and agrochemical manufacturers, as traders remained cautious due to weak seasonal demand.
• By June 2025, prices were at their lowest in the quarter, pressured by lower feedstock costs and muted exports.
• The Heavy Aromatic Naphtha Solvent Production Cost Trend decreased owing to cheaper naphtha availability and reduced energy costs.
• The Heavy Aromatic Naphtha Solvent Demand Outlook stayed weak in the region, particularly from packaging and dye sectors that continued operating at reduced capacities.
Why did the price of Heavy Aromatic Naphtha Solvent change in July 2025 in India?
• In July 2025, the Price Index continued to decline due to limited demand and persistent bearish sentiment.
• The Heavy Aromatic Naphtha Solvent Price Forecast for Q3 remains uncertain unless monsoon-related restocking provides momentum.
Europe
• The Heavy Aromatic Naphtha Solvent Price Index, especially in the Netherlands, dropped by notably during Q2 2025, reflecting mild market correction.
• Demand from European petrochemical and industrial cleaning segments contracted in April and May amid sluggish cracker operating rates and regulatory pressures.
• In June 2025, downward pressure persisted as feedstock naphtha margins tightened alongside reduced domestic manufacturing of adhesives and coatings.
• The Heavy Aromatic Naphtha Solvent Production Cost Trend softened slightly as crude-linked input costs eased and logistical challenges eased.
• The Heavy Aromatic Naphtha Solvent Demand Outlook remained subdued, particularly in Western Europe, due to ongoing industrial weakness and reliance on imported solvent materials.
Why did the price of Heavy Aromatic Naphtha Solvent remain weak in July 2025 in Europe?
• In July 2025, the Price Index remained average amid weak downstream offtake and persistent feedstock margin pressure.
• The Heavy Aromatic Naphtha Solvent Price Forecast suggests range bound to soft pricing through early Q3 unless petrochemical demand recovers.
For the Quarter Ending March 2025
North America
In Q1 2025, the Heavy Aromatic Naphtha Solvent market in the USA continued to overcome changing demand patterns and economic uncertainties. Early in the quarter, constant usage from the coatings and adhesives sectors supported the market. However, later, rising production costs and persistent inflationary pressures affected the overall industrial output, constraining demand growth. Manufacturers faced ongoing inventory challenges, with excess supply creating an intensely competitive landscape among suppliers.
This caused further price adjustments as companies sought to retain their market share amidst changing market conditions. Simultaneously, regulatory measures targeting VOC emissions remained a crucial factor in shaping production strategies, prompting manufacturers to increase their investments in cleaner technologies and reformulate products to meet stringent compliance standards.
As economic conditions showed signs of stabilization, industry participants prepared to adapt to shifting market dynamics while maintaining their strategic positioning. By the end the quarter, market sentiment of Heavy Aromatic Naphtha Solvent was cautious yet forward-looking, as stakeholders closely monitored economic recovery indicators.
APAC
During Q1 2025, India's Heavy Aromatic Naphtha Solvent market experienced significant fluctuations amid shifting demand dynamics. January saw a 3.9% price decline, influenced by reduced fuel consumption and moderate industrial activity. While demand from agrochemical and pharmaceutical sectors remained moderate, unfavourable weather patterns and global economic uncertainties limited the growth. In February, prices dropped sharply by 14%, due to falling crude oil prices, inventory build-ups, and reduced buying interest. The agrochemical sector faced slower procurement, while pharmaceutical exports were impacted by regulatory delays. By March, market sentiment turned positive, with a 4.8% price rebound, fuelled by seasonal demand uptick from both agrochemical and pharmaceutical industries. The agrochemical sector experienced growth ahead of the Kharif season, while pharmaceutical companies scaled production amid increasing investment in drug development. Stable domestic supply and strategic inventory adjustments contributed to a balanced outlook, with expectations of continued demand support from key end-use sectors in the upcoming months. So, the market closed the quarter with prices at USD 772 per MT.
Europe
In Q1 2025, the Heavy Aromatic Naphtha Solvent market in Europe continued to experience a dynamic landscape shaped by changing demand trends and regulatory constraints. The coatings industry, particularly in Germany and France, remained a significant driver of the market. However, as the quarter progressed, persistent inflationary pressures placed a strain on manufacturers, leading to reduced production volumes and a moderation in new project activity. Supply chain disruptions persisted, intensified by logistical challenges caused by strikes in key transportation sectors, which further affected the timely distribution of stocks. Consequently, increased inventory levels among producers stimulated strategic price adjustments aimed at maintaining competitiveness within the market. Additionally, stringent European Union regulations on VOC emissions continued to influence the production strategies. By the end of the quarter, market sentiment remained cautiously optimistic, with stakeholders closely monitoring economic indicators for signs of stability. A resurgence in demand from the automobile and construction sectors was anticipated to drive growth in the coming months, reinforcing expectations of a gradual market recovery.
For the Quarter Ending December 2024
North America
In Q4 2024, the Heavy Aromatic Naphtha Solvent market in the USA faced significant challenges amid fluctuating demand and economic pressures. Initially, strong demand from the coatings and adhesives sectors was driven by seasonal projects and infrastructure investments. However, as the quarter progressed, demand weakened due to rising production costs and inflationary pressures affecting overall industrial activity. Manufacturers struggled with high inventory levels as production continued despite declining consumption, leading to an oversupply situation that intensified competition among suppliers.
This resulted in price adjustments as companies sought to maintain market share. Additionally, stricter environmental regulations regarding VOC emissions influenced production strategies, prompting manufacturers to invest in cleaner technologies and adapt formulations to comply with new standards. By the end of Q4, market sentiment was cautious, with stakeholders closely monitoring economic indicators for signs of recovery.
Despite these challenges, there remained optimism for early 2025, as anticipated increases in construction and manufacturing activities could drive renewed demand for Heavy Aromatic Naphtha Solvent as economic conditions began to stabilize.
APAC
In Q4 2024, the Heavy Aromatic Naphtha Solvent market in the APAC region experienced notable shifts influenced by demand and regulatory changes. The coatings and adhesives industries were primary consumers, benefiting from increased construction activities and infrastructure projects, particularly in Southeast Asia. However, as the quarter progressed, demand began to soften due to rising costs of raw materials and logistical challenges rising from ongoing supply chain disruptions.
Key producers in countries like India and China faced pressure to optimize production amid fluctuating demand. Many manufacturers adopted strategies to reduce output temporarily to manage high inventory levels, which had built up due to earlier overproduction. Stricter environmental regulations, particularly concerning VOC emissions, prompted manufacturers to explore alternative formulations and invest in cleaner technologies. This shift aimed to align with sustainability goals while maintaining product performance. As Q4 concluded, industry stakeholders remained cautiously optimistic about early 2025, anticipating a potential rebound in demand driven by renewed economic activity and ongoing infrastructure investments across the region.
Europe
In Q4 2024, the Heavy Aromatic Naphtha Solvent market in Europe experienced a complex landscape influenced by shifting demand and regulatory pressures. The coatings industry, particularly in Germany and France, initially drove demand due to a surge in construction projects and renovations fuelled by government infrastructure spending. However, as the quarter progressed, rising energy costs and inflation began to weigh on manufacturers, leading to reduced production capacities and a slowdown in new projects.
Supply chain disruptions persisted, exacerbated by logistical challenges stemming from strikes in key transportation sectors, which hindered timely deliveries. This situation resulted in elevated inventory levels for many producers, prompting them to implement strategic price adjustments to remain competitive.
Furthermore, the European Union's stringent regulations on VOC emissions forced manufacturers to innovate and adopt greener production methods. By late December, market sentiment was cautious but hopeful, with industry players anticipating a rebound in early 2025 as economic conditions stabilized and demand from the automotive and construction sectors was expected to rise.
For the Quarter Ending September 2024
North America
In Q3 2024, the Heavy Aromatic Naphtha Solvent (HAN Solvent) market in North America faced a complex pricing landscape due to fluctuating crude oil prices, which significantly impacted production costs. This increase in upstream costs created pressure on solvent manufacturers as they attempted to maintain profitability amidst these challenges. Demand from key sectors, however, remained modest, with industries such as construction, paint, and coatings showing restrained purchasing activities due to economic uncertainties and a cautious market sentiment. Lower than anticipated output from construction activities added to a reduction in demand, impacting the solvent’s downstream consumption.
Additionally, the broader manufacturing sector in North America exhibited caution, with companies adopting conservative inventory strategies to avoid overstocking in uncertain economic times. The reduced activity was partly a reflection of tightened monetary policies and inflation concerns, which constrained discretionary spending on materials like HAN Solvents. Paint and coatings manufacturers, significant users of aromatic solvents, also lowered their intake due to lower demand in the construction industry, which continued to experience headwinds in Q3.
By the end of the quarter, the North American HAN Solvent market remained resilient despite the complex conditions, with manufacturers focusing on inventory management and strategic sourcing to maintain stability in pricing. Market participants adjusted procurement volumes and implemented cost-saving measures to align with the reduced demand. Despite these pressures, no significant disruptions in supply were reported, as suppliers worked to adapt to the fluctuating demand, sustaining a relatively stable environment for HAN Solvents in North America.
APAC
In Q3 2024, the APAC region observed fluctuating prices in the Heavy Aromatic Naphtha Solvent market, driven by variable demand across industries like coatings, paints, and automotive manufacturing. Initially, economic activities were robust, particularly in the automotive sector, leading to an uptick in solvent consumption. However, geopolitical tensions and procurement costs impacted supply chains, resulting in mixed price behaviour. India particularly experienced notable fluctuations during the quarter, with prices declining in the first half due to reduced demand from key sectors and restrained purchasing strategies. This bearish trend reflected the cautious sentiment of industries responding to broader market conditions. In the latter part of the quarter, prices rebounded slightly as manufacturing activities increased, contributing to improved market sentiment. Overall, despite periods of recovery, the quarter ended with a varied price trajectory, with Heavy Aromatic Naphtha Solvent prices reaching USD 859 per MT on ex-Kandla basis in September. This underscores a period of price volatility influenced by both supply and demand-side factors in the region.
Europe
In Q3 2024, the European Heavy Aromatic Naphtha Solvent market experienced a noticeable downturn in pricing, driven by muted demand across essential sectors. Key industries like paints, coatings, and adhesives showed limited purchasing activity, as high production costs, driven by energy price inflation, strained profitability. Germany, a significant market for HAN Solvent, experienced the most substantial price adjustments, reflecting the broader economic uncertainty impacting Europe. This reduced industrial activity in construction, a primary consumer of aromatic solvents, caused a knock-on effect on related sectors dependent on HAN Solvents. The European market also contended with high operational expenses in the face of weakened demand. With consumers and businesses exercising caution, solvent manufacturers adjusted pricing and focused on managing supply chains to prevent overstocking. Additionally, sustainability pressures and regulatory requirements drove companies to explore alternatives, further reducing demand for HAN Solvents as companies sought cost-effective and environmentally-friendly options. Overall, Q3 concluded with a cautious outlook for the HAN Solvent market in Europe, as suppliers aligned inventories with anticipated demand for the remaining year. Despite economic headwinds, solvent producers employed conservative approaches to sustain market balance without significant price volatility. As economic pressures persisted, manufacturers adapted production volumes to match reduced demand, expecting similar market conditions in the near future.
FAQs
What is the current price trend of Heavy Aromatic Naphtha Solvent in July 2025?
In July 2025, the Price Index remained under pressure across key regions due to weak refinery margins and reduced downstream consumption.
Who are the major producers of Heavy Aromatic Naphtha Solvent in Asia?
Leading producers include Indian Oil Corporation, Bharat Petroleum, and PetroChina, supplying to coatings, agrochemical, and solvent industries.
What is the Heavy Aromatic Naphtha Solvent Price Forecast for Q3 2025?
The Price Forecast suggests continued decline unless restocking activity or crude oil recovery supports pricing in key downstream segments.
How is the Heavy Aromatic Naphtha Solvent Production Cost Trend affecting the market?
The Production Cost Trend remained downward in Q2 2025, driven by lower crude oil costs and improved logistics, aiding overall cost efficiency.
