Naphtha is a liquid made from the distillation of coal tar or petroleum. The mixture depends upon the hydrocarbons used and the temperature they are boiled. It looks like gasoline.
The main suppliers of naphtha are refineries. Most of the traded market in naphtha comes from less integrated refineries. The mainly integrated refineries produce naphtha as well as use it as a feedstock for gasoline and petrochemical uses. Middle East by far is the biggest source for naphtha geographically. India, Latin America, Mediterranean and Africa are also net suppliers. The major consuming economies usually have substantial petrochemical interests. Economies such as Taiwan, Japan and Korea are major importers.
One of the major factors driving the global market for naphtha is the rising demand from the end user industry. Naphtha is mainly considered as the initial block for building petrochemicals. It is used as feedstock in petrochemical steam crackers, and the primary products of the cracking process are olefins such as ethylene, propylene, butylenes and butadiene.
Naphtha is a product manufactured from refining of crude oil. Crude oil is a highly volatile commodity due to its widening supply demand gap. Crude oil is a major raw material for the production of naphtha. So any imbalance in crude oil affects its pricing structure which ultimately leads to its volatility in the global market. Volatility in crude oil prices can be seen further in its refining products i.e. propylene and butadiene.
The rising price of crude oil globally is putting a question mark on the profitability of naphtha producers as there is intense competition in the global market.
Global naphtha market is segmented on the following bases:
Key Players Identified in the Naphtha Market include but are not limited to:
British Petroleum, Shell, ExxonMobil, Chevron, Indian Oil Corporation, SABIC, Mitsubishi Chemical, Reliance Industries, Total S.A, Sinopec, Novachem, and Novatek among others.
This report offers: