The prices of Naphthalene continued the streak of stability during the first week of February 2025 in the US market. The prices have showed continuous stability in past couple of weeks. The stability in the prices was attributed to balanced supply and demand conditions with minimum fluctuations in the supply chain and as well as demand. The demand for Naphthalene in major downstream sectors like Phthalic anhydride production and construction sector remained steady which supported the stable market trend.

Moving forward, the market sentiments for Naphthalene can witness bearish outlook and therefore prices may decline in the near future. The decline in the prices may be attributed to the uncertain global market dynamics which could offset the demand for Naphthalene in domestic as well as international market. With the introduction of tariffs by US president Donald Trump, the competitiveness of US Naphthalene could decline in the international market therefore putting downward pressure on export demand and in turn Naphthalene prices.

In the current market dynamics, the demand from construction sector remained uncertain. While the industry faces challenges such as shifts in global trade policies, fluctuating construction material costs, and evolving immigration policies, these factors have yet to create significant disruptions in naphthalene demand. U.S. Construction Outlook, the sector is experiencing volatility and cost fluctuations, but long-term real estate strategies remain intact, helping sustain steady demand for key industrial chemicals like naphthalene. Commercial real estate decision-makers are navigating a complex landscape, carefully balancing market risks with long-term development plans, ensuring that construction activity continues at a moderate pace. Consequently, the demand for Phthalic anhydride also remained steady leading to steady consumption of naphthalene from the sector as reflecting by steady pricing of Phthalic anhydride.

On the supply side, the continuous decline in crude oil prices contributed to a more cost-effective production environment for the manufacturers. Lower crude oil costs reduced refinery operating expenses, ensuring consistent availability of feedstocks required for naphthalene production. Additionally, an ample supply of crude oil in the global market prevented any significant supply disruptions, allowing producers to maintain steady operational rates. As a result, naphthalene production activities remained stable, reinforcing balanced supply dynamics in the market.

Meanwhile, demand-side fundamentals also exhibited steadiness, with key downstream sectors, including construction, automotive, and chemicals, maintaining a moderate but consistent demand. Although market participants monitored potential macroeconomic uncertainties, overall market sentiments remained flat, as stable supply and demand conditions prevented any major price fluctuations. This equilibrium contributed to a neutral market outlook, with the prices remaining largely unchanged in response to the balanced supply-demand scenario.