Heavy Aromatic Naphtha Solvent prices edging upwards amidst firm feedstock costs

Heavy Aromatic Naphtha Solvent prices kept tracing upwards in the Asian market, taking pressure from the soaring upstream value. In countries such as India, the costs increased nearly 6% this month, as per the ChemAnalyst database. Also, global supply shortage and high freight prices continued to affect various petrochemicals' market fundamentals, including Heavy Aromatic Naphtha Solvent.

Rising crude oil value has been a matter of concern for several downstream players, as it's causing a sharp rise in prices of several commodities along with Heavy Aromatic Naphtha Solvent across the global market. Saudi Arabia has hiked its official selling price to an all-time high in response to western nations' disregard for Russian crude oil. Additionally, the US may raise interest rates by 50 basis points, putting short-term pressure on crude oil prices.

However, this week, West Texas Intermediate (WTI) Crude has stabilized after falling to USD 96 per barrel. The reason is the coordinated inventory release by multiple nations and the extension of the Covid lockdown in China, which has temporarily put fears of Russian supply disruptions on hold. The International Energy Agency (IEA) plans to release 60 million barrels of strategic reserves beyond the US's 180-million-barrel stock draw, which helped bring oil prices below USD 100 per barrel.

Meanwhile, demand fundamentals are also rising on the back of the wavering threat of pandemic in the Asian region. With the increased inclination of people toward automobile purchases, home renovation, and construction projects, a rebound in demand for Heavy Aromatic Naphtha Solvent, primarily from the paints and coating industry, has contributed mainly to providing consistent increment in its prices.

As per ChemAnalyst, "Heavy Aromatic Naphtha Solvent prices are predicted to rally uphill, as long as the upstream crude stays buoyant. Also, an increase in consumption from the downstream Agrochemical industry could promote the Heavy Aromatic Naphtha Solvent market growth."