Booming Heavy Aromatic Naphtha Solvent Prices in Asia

Delhi NCR, India: According to the latest monitoring data of ChemAnalyst, the Heavy Aromatic Naphtha Solvent market has been continuing an upward price trajectory across the Asia-Pacific region. The upstream Crude oil prices were rallying uphill owing to the robust demand from the world’s highest consumer-United States. In addition, the recovering demand from China after the relaxation of covid restrictions has been promoting the oil price hike since the first week of June.

Over the last few months, Crude oil prices have risen sharply due to a fall in Russian exports against the backdrop of ongoing geopolitical tension across the East European region. The conflict has brought about food, energy, and petrochemical crises in most countries worldwide. With soaring inflationary pressure, the downstream Heavy Aromatic Naphtha solvent players were facing difficulties with raw material procurement. Despite the fact that OPEC+ agreed to improve the production, the huge gap in demand-supply fundamentals might not ease in the near term, as per our trusted market sources. Based on the higher input costs, solvent manufacturers have also reduced their production expectations across the Indian market.

Meanwhile, demand-side support is the only factor supporting the mounting price trend. As per the ChemAnalyst Petrochemical Database, offers for crude-oil derived Heavy Aromatic Naphtha solvent showcased an inclination of more than 4% earlier this week in the Asia-Pacific market. A key solvent player in India, Ganga Rasayanie, revealed in an interview that the facilities were witnessing increased enquiries from the downstream automotive sector.

Conclusively, as per ChemAnalyst, “the market dynamics for Heavy Aromatic Naphtha Solvent are predicted to stay bullish towards the end of the second quarter in Asia. With the fluctuating upstream market, crude derivative players are likely to increase their offers for petrochemical solvent lines in the coming weeks. In addition, India's rapidly advancing automotive segment is expected to consume substantial amounts of the solvent thanks to its numerous applications.”