Naphthalene market continued to show remarkable resilience in the last week of November 2024. The last week of November witnessed stable market prices for Naphthalene in the market. The prices of Naphthalene remained stable amid various factors including but not limited to raw material cost, production cost, demand and supply dynamics, geopolitical conflicts and so on. The prices showed stable trend in the month of November.

The stability in the price trend was observed due to various reasons. The major driving reason was efficient inventory management. The supply and demand levels remained consistent and therefore the stable prices in the market were observed. The prices stood at USD 1800/ CFR Houston USA. The major exporting countries of Naphthalene also showed stable price trend in the market. In the feedstock market, the prices of Coal are anticipated to witness a slight bullish trend owing to greater energy generation demand in the market. Despite the anticipatory increase in coal prices, Naphthalene prices continued to be stable in the market. The major downstream industry for Naphthalene includes Phthalic anhydride production industry, dyes, and pigment industry and subsequently construction industry.

The demand from the major downstream sectors continued to be steady in the last week of November. The overall 7.3% of home building materials in the USA are imported according to the National Association of Home Builders (NAHB). The new tariffs proposed by the newly elected president of USA that is Donald Trump, may increase the cost of importing these materials and thus may lead to increased prices in the market. According to the latest reports from the U.S. Census Bureau, the value of construction put in place increased by 0.4% month-over-month (m/m) in October, slightly surpassing expectations. This followed a 0.1% rise in September (unrevised) and a revised 0.9% gain in August (+0.1% previously). October marked the third consecutive m/m increase after a 0.04% decline in July and a 1.1% drop in June. With the industry maintaining stability over the past few months, demand for chemicals such as Phthalic anhydride and Naphthalene remained steady, with minimal market volatility. The steady growth in downstream sectors helped sustain the stable price trend for Naphthalene.

Looking further, the prices of Naphthalene may experience volatility in the coming weeks due to the proposed tariffs of 25% on Canada and Mexico by the newly elected president of USA-Donald Trump which could lead to increased cost of construction materials in the USA market. The changes in demand and supply dynamics may also influence the price trend for Naphthalene in the market.