Japan Chemical Trading Blog
Increase in International Prices of Petroleum Products
According to a Nikkei Newspaper article dated June 24th, the “Spot price of naphtha is now around USD990/ton”.
Naphtha is a fraction obtained from crude oil through separation by distillation with a boiling point of 30-180 degree C. In Japan, it is used as a main ingredient for petroleum products such as ethylene.
With crude oil fetching high prices as a result of the growing tension in Iraq, the second largest crude oil producer among OPEC countries, the price of naphtha has also increased by about 6% since the beginning of June.
An increase in naphtha’s price has resulted in the increase in prices of products including polyethylene and benzene.
However, since April, the number of inquiries our company has received from Asian countries overall is on a downward trend and the Asian market including China is currently lacking enthusiasm. Therefore, it may be difficult to expect that the demand will boost up the price.
It is still uncertain whether the price increase will spread to the downstream chemical products in general. If the increase in naphtha price escalates, the profit of chemical manufacturers may be squeezed.