Asian naphtha supply will continue to be tight in the next two years

【发表时间 2025-01-09 13:58:04】

Asian naphtha supply will continue to be tight in the next two years

With more cracking units put into operation and the increasing demand for blending naphtha with gasoline, it is expected that the supply of naphtha in Asia will continue to be tight in the next two years.

The tight supply may support the prices of naphtha and petrochemical raw materials, and increase the profit margins of refineries. However, the rise in naphtha prices will bring further profit margin pressure to petrochemical manufacturers, who are struggling to cope with the challenges of weak demand and increased product inventory.

In the Asian market, the supply gap of naphtha is expected to be 1.73 million barrels per day in 2025, 1.51 million barrels per day in 2026, and 1.72 million barrels per day this year.

In the next two years, Asia will put into operation 18 million tons/year of cracking projects. These projects include China Wanhua Chemical's project in Yantai, Shandong, ExxonMobil's project in Huizhou, Guangdong, and a new project at Shandong Yulong Petrochemical. More and more naphtha is being used for gasoline blending in countries such as India, South Korea, and Europe, and this trend may continue next year as the aromatics market remains in surplus.