For the Quarter Ending June 2025
North America
• The Naphthalene Price Index in the U.S. recorded a quarter-on-quarter increase of 1.3% in Q2 2025, with the product assessed at USD 1830/MT CFR Houston by end of June.
• This upward movement in Naphthalene Spot Price was primarily supported by steady demand from downstream phthalic anhydride and plasticizer sectors, reflecting a bullish trend in market fundamentals.
• Supply remained balanced, with no major disruptions, while firm feedstock costs (especially from coal tar) underpinned the Naphthalene Production Cost Trend, contributing to the marginal rise in pricing.
• Procurement activity by end-users remained consistent, with buying strategies shaped by stable production levels and expectations of moderate summer demand.
• The Naphthalene Demand Outlook remains optimistic, with downstream converters maintaining routine operating rates and maintaining active procurement cycles.
• For July 2025, prices are expected to remain firm due to tightened inventories and cost-push pressures. Hence, the Naphthalene Forecast suggests continued bullishness through early Q3.
APAC
• The Naphthalene Price Index in China saw a quarter-on-quarter increase of 9.8% in Q2 2025, with prices rising to USD 846/MT CFR Qingdao by late June.
• Why did the price of Naphthalene change in July 2025 in China? Early July showed a notable price increase due to reduced operating rates at coking units—triggered by environmental inspections and feedstock coal tar supply tightness—which amplified the Naphthalene Production Cost Trend.
• Demand from downstream phthalic anhydride (PA) producers remained robust, especially as they ramped up output in anticipation of seasonal construction demand in Q3.
• Rising freight costs and supply-chain congestion, coupled with limited exports from South Korea, added further pressure to supply, sustaining the region’s bullish trend.
• The Naphthalene Spot Price in the third week of June hit USD 855/MT, reflecting risk premiums factored in by traders anticipating ongoing tightness.
• The Naphthalene Demand Outlook for July remains positive, driven by restocking activity and healthy offtake from resin and plasticizer industries.
• The Naphthalene Forecast for the coming weeks suggests further upside potential, subject to feedstock volatility and logistics normalization.
Europe
• The Naphthalene Price Index in Germany rose by 1.3% quarter-on-quarter, with prices climbing to USD 990/MT FOB Hamburg by the end of June 2025.
• Why did the price of Naphthalene change in July 2025 in Germany? Early July pricing remained firm, sustained by moderate upstream cost inflation from coal tar and persistent logistical bottlenecks at ports like Hamburg and Bremerhaven, reflecting a bullish trend in regional sentiment.
• Despite subdued demand from the construction sector, downstream PA and dye manufacturers continued routine procurement, ensuring stable baseline consumption.
• Rising global oil prices and cautious inventory management by importers contributed to the Naphthalene Production Cost Trend, which in turn supported flat-to-upward pricing pressure.
• The Naphthalene Spot Price stayed at USD 990/MT in the final week of June, underpinned by limited port throughput and steady regional production.
• The Naphthalene Demand Outlook is neutral to mildly optimistic, with expectations of gradual recovery in construction and chemicals by late Q3, subject to macroeconomic stabilization.
• The Naphthalene Forecast remains bullish, with price stability likely to persist in July amid constrained logistics and controlled production planning.
For the Quarter Ending March 2025
North America
In Q1 2025, the price trend for Naphthalene in the North American market exhibited a mixed trajectory, marked by initial stability followed by a bullish phase and eventual moderation. January began with steady price levels, reflecting subdued trading activity during the Lunar New Year period.
Supply remained consistent, primarily sourced from Japan, while demand from downstream sectors such as Phthalic Anhydride (PA) and construction showed average performance, preventing major price movements. However, February witnessed a notable shift as prices rose significantly, driven by post-holiday demand recovery and constrained supply due to labor shortages and production bottlenecks.
Prices peaked mid-February, influenced by strong PA sector demand and limited availability from Japan amid higher feedstock costs and reduced refinery outputs. March stabilized again, with prices plateauing at elevated levels amid steady supply and muted downstream consumption. While infrastructure activity provided baseline support, excess inventories in the PA sector capped further procurement, easing upward pressure. Compared to Q4 2024, when prices showed a declining or stagnant trend, Q1 2025 marked a recovery phase for Naphthalene, with an overall upward bias, especially mid-quarter, indicating strengthening fundamentals despite external economic uncertainties.
APAC
In Q1 2025, Naphthalene prices in the APAC region, particularly Japan, displayed a broadly stable to mildly bullish trajectory, anchored by a balanced interplay of supply-demand fundamentals. January commenced with a minor 1.9% price dip due to weak demand across key sectors like dyes, intermediates, and construction. However, this initial softness transitioned into stability by mid-to-late January, as steady supply and cautious inventory management prevented further downward pressure. In February, despite rising production costs and macroeconomic shifts like interest rate hikes, prices remained largely stable until mid-month, when a sharp 3.8% rise was recorded, followed by a 5.5% surge a week later—primarily due to tight supply and robust demand from phthalic anhydride and specialty chemicals sectors.
Prices plateaued at this higher level through late February and March, with steady domestic coal tar output and cautious procurement cushioning the market against global volatility and weakening phthalic anhydride demand. Compared to Q4 2024, where bearish sentiment dominated, Q1 2025 showed signs of recovery with firm price levels, though persistent construction challenges and PA sector shifts remain a limiting factor for sustained bullish momentum.
Europe
In Q1 2025, the German Naphthalene market experienced consistent price stability, with values largely unchanged throughout the quarter. Prices hovered around USD 972–975/MT FOB Hamburg, reflecting a market characterized by a well-balanced supply-demand dynamic. January began with a bearish sentiment due to subdued industrial activity and cautious purchasing amid economic uncertainties. Nonetheless, effective inventory management and steady downstream demand, especially from the Phthalic Anhydride (PA) and chemical sectors, sustained equilibrium.
As the quarter progressed, manufacturing indicators showed slight improvement. By February, signs of recovery in Germany’s industrial sector bolstered supply chain stability, further reinforcing the flat pricing trend. Though construction demand remained soft due to high inflation, rising interest rates, and limited project approvals, steady PA production prevented significant demand erosion. In March, while challenges intensified—particularly a deeper contraction in construction and a growing shift toward non-phthalate plasticizers like DOTP—producers adjusted procurement and output, preventing market imbalances.
Compared to Q4 2024, when prices were slightly more reactive to shifting economic conditions, Q1 2025 was defined by tighter operational control and cautious optimism, resulting in minimal price movement and a predominantly rangebound trend.
For the Quarter Ending December 2024
North America
In Q4 2024, the North American naphthalene market experienced a mixed trend, with an initial price rise followed by a decline later in the quarter. Early in the quarter, prices increased due to robust demand from downstream industries, including phthalic anhydride production and construction. The resilience of the construction sector and fluctuations in feedstock coal prices supported this upward momentum.
Midway through the quarter, the market saw a shift as demand from key sectors, such as dyes, pigments, and phthalic anhydride, began to weaken. Regulatory concerns over phthalates, coupled with improved supply conditions and steady production levels, created bearish sentiment. Despite modest growth in construction employment and spending, persistent challenges like high interest rates and supply chain issues limited further demand growth.
By the end of the quarter, naphthalene prices stabilized as supply-demand dynamics reached equilibrium. The market, while fluctuating, showed an overall bullish trend compared to the previous quarter, recording a 3.8% increase. This reflects the initial strong demand and price rise that offset the later bearish phase, highlighting the evolving market dynamics throughout the quarter.
APAC
In Q4 2024, the Chinese naphthalene market demonstrated a consistent bearish trend, with prices declining throughout the quarter, ultimately registering an 11.5% quarter-on-quarter decrease. Despite stable production levels and steady coal prices, the market faced challenges driven by weak demand fundamentals from major downstream sectors such as phthalic anhydride and synthetic resins. The subdued activity in the construction sector further compounded the decline, as demand for plasticizers and related materials weakened. Excess supply in the market exerted additional downward pressure on prices, as stockpiles of naphthalene grew ahead of the Lunar New Year, reflecting cautious purchasing behaviour from downstream industries. While demand for phthalic anhydride remained stable, other sectors showed limited buying interest, leading to reduced consumption of naphthalene. Geopolitical tensions affecting crude oil prices and currency fluctuations added to the cautious sentiment in the market. By the end of the quarter, naphthalene prices stabilized as supply-demand dynamics balanced, supported by consistent production and export stability in neighbouring markets like Japan. However, the overall bearish sentiment throughout the quarter was driven by declining demand, oversupply, and lacklustre performance in key downstream sectors, contributing to the significant quarterly decline in prices.
Europe
In Q4 2024, the German naphthalene market saw a quarter-on-quarter price increase of 9.2%, reflecting a generally bullish trend throughout the period. At the beginning of the quarter, prices remained stable, supported by balanced supply-demand dynamics and consistent production levels. The market benefited from moderate demand, particularly from sectors such as textiles and plastics, which helped maintain stable prices. The feedstock market also saw steady conditions, allowing for a consistent price level. As the quarter progressed, naphthalene prices saw a notable uptick, driven by robust demand and supply chain disruptions, particularly in the wake of shifting energy sourcing and production challenges. Despite the rise in demand, however, the construction sector remained subdued, contributing to weaker demand from phthalic anhydride production. As a result, the market experienced a slowdown in demand towards the end of the quarter. In December, the German naphthalene market witnessed a slight price decline, attributed to the ongoing challenges in the construction sector and weak downstream demand. This shift led to a modest drop in prices. However, the overall quarter remained positive, with the market demonstrating resilience and achieving a quarter-on-quarter price increase of 9.2%, reflecting strong demand and stable production amidst a mixed market outlook.
For the Quarter Ending September 2024
North America
The third quarter of 2024 for Naphthalene in North America exhibited a notable trend of increasing prices driven by several key factors. Market dynamics were influenced by a combination of supply and demand variables, logistics challenges, and economic indicators. The tightening supply chain, coupled with stable demand from downstream industries, contributed to the upward pressure on prices. Additionally, logistical hurdles and supply disruptions further exacerbated the price incline, creating a bullish environment for Naphthalene pricing.
In the USA specifically, significant price fluctuations were observed, with a marked increase of 5% from the first half to the second half of the quarter. This surge in prices reflects the heightened market volatility and the impact of various external factors on pricing dynamics. Comparing to the same quarter last year, the prices experienced a modest decline of 3%, indicating a shift towards a more bullish market sentiment in the current year.
The quarter concluded with Naphthalene Refined priced at USD 1790/MT CFR Houston in the USA, marking a substantial increase from the beginning of the quarter. This upward trajectory underscores the positive pricing environment that characterized the third quarter, emphasizing the resilience and adaptability of the Naphthalene market in response to evolving market conditions.
APAC
In Q3 2024, the Naphthalene market in the APAC region experienced a period of decreasing prices, influenced by various factors. The market sentiment was predominantly negative, with prices showing a significant decline from the same quarter last year, down by 9%. This downward trend was further emphasized by a 2% decrease from the previous quarter in 2024. The overall pricing environment exhibited a consistent negative trajectory, with a notable -3% price difference between the first and second half of the quarter. In Japan, the market saw the most significant price changes, with prices for Naphthalene Refined FOB Osaka dropping to USD 580/MT by the end of the quarter. This decline was driven by weak demand from downstream industries, as well as seasonality factors impacting production and consumption patterns. The correlation between price changes and market dynamics highlighted a challenging period for Naphthalene pricing in Japan, reflecting a bearish outlook for the commodity.
Europe
In the third quarter of 2024, the Naphthalene pricing in the Europe region experienced a notable uptrend, particularly in Germany, showcasing significant price fluctuations. The market dynamics were influenced by various factors that culminated in the prevailing price of USD 950/MT of Refined Naphthalene FOB Hamburg. This quarter witnessed a remarkable 38% increase from the same period last year, signifying a substantial shift in pricing trends. The market was notably impacted by supply disruptions, logistical challenges, and decreased production costs. These factors, coupled with increased transportation costs and supply chain issues, contributed to the overall bullish outlook in the Naphthalene market. Additionally, the stability in feedstock prices and steady demand from downstream sectors played a crucial role in driving prices upwards. Germany, in particular, experienced the most significant price changes, with a 2% increase from the previous quarter and an 8% variation between the first and second half of the quarter. This underscores the volatility and sensitivity of the market to various internal and external factors, ultimately leading to the observed price fluctuations. Overall, the pricing environment for Naphthalene in Q3 2024 has been positive, reflecting a bullish market sentiment characterized by increasing prices and evolving market conditions.
Frequently Asked Questions (FAQs)
Q1. What caused the rise in Naphthalene Spot Prices across regions in Q2 2025?
A1. The price increase was driven by tight coal tar supply, firm demand from phthalic anhydride and plasticizer sectors, and logistical challenges across China and Europe, contributing to a bullish sentiment globally.
Q2. How is the Naphthalene Demand Outlook shaping for Q3 2025?
A2. The demand outlook is bullish across all regions, supported by stable downstream production and anticipated demand from construction and automotive sectors, particularly in APAC and the U.S.
Q3. Are upstream costs impacting the Naphthalene Production Cost Trend?
A3. Yes, rising coal tar and crude oil prices, along with freight inflation, have contributed to an upward Naphthalene Production Cost Trend, especially in APAC and Europe.
Q4. What is the Naphthalene Forecast for July 2025?
A4. The Naphthalene Forecast indicates stable-to-firm pricing across North America, APAC, and Europe due to strong fundamentals, cautious restocking, and regional supply limitations.
