The Naphtha Price Trend in Q2 2026 was shaped by major changes in Middle Eastern supply, international shipping conditions, crude oil costs, and demand from the petrochemical industry. Prices increased significantly across the markets covered during the quarter as concerns about disruptions around the Strait of Hormuz pushed buyers to search for alternative supplies.
However, the market changed direction in June as shipping conditions improved, supply availability increased, and buyers became more cautious about purchasing. These developments affected naphtha prices in Asia, Europe, and the Americas, showing how quickly global supply chain changes can influence the cost of an important industrial raw material.
Naphtha is a petroleum-based liquid widely used as a feedstock in the petrochemical industry. It plays an important role in producing chemicals used in plastics, packaging, synthetic fibres, solvents, and many other industrial products. It is also used in gasoline blending in certain markets.
The demand for naphtha is closely connected to refinery operations and the performance of downstream industries. Petrochemical manufacturers use naphtha in steam crackers to produce ethylene, propylene, and other valuable chemicals. When demand for these products is strong, naphtha consumption can increase. When production margins become weaker, manufacturers may reduce operating rates or become more careful about purchasing feedstock.
International trade is another important part of the market. Some countries have access to domestic refinery supplies, while others depend heavily on imports. Shipping costs, cargo availability, product quality, and delivery terms can therefore create significant differences between regional prices.
During Q2 2026, concerns about Middle Eastern supply disrupted normal purchasing patterns. Buyers looked for alternative cargoes, increasing competition for supplies from other exporting regions. Later, as supply conditions improved, this additional pressure began to ease.
The Naphtha Price Trend recorded substantial increases across the markets included in the supplied Q2 2026 data. The Strait of Hormuz crisis created concerns about the movement of Middle Eastern energy supplies. Buyers in Asia and Europe became more interested in securing alternative cargoes, which increased competition for available material.
Higher freight costs, replacement expenses, and uncertainty about future deliveries added to purchasing pressure. These conditions affected both import-dependent markets and regions supplying alternative cargoes.
Japan recorded the strongest quarterly increase among the listed markets, with light paraffinic naphtha prices assessed on a CIF Tokyo basis rising by approximately 59%. India recorded an increase of around 43%, while South Korea rose by approximately 41%.
In Europe, the Netherlands recorded a quarterly increase of around 33%, Germany approximately 32%, France around 33%, and Belgium approximately 30%. The UAE and Saudi Arabia each recorded increases of approximately 28% in their respective FOB markets.
In the Americas, the USA recorded an increase of approximately 34%, while Mexico and Brazil each experienced gains of around 32%. Canada recorded a rise of approximately 28%.
These figures show that the supply disruption affected different markets to varying degrees. Countries that depended heavily on Middle Eastern cargoes experienced considerable pressure, while markets with more flexible North American sourcing arrangements also saw prices rise because international buyers competed for alternative supplies.
Asian markets were particularly sensitive to concerns about Middle Eastern supply because many regional buyers rely on imported naphtha for their petrochemical operations.
Japan recorded a quarterly increase of approximately 59% for light paraffinic naphtha assessed on a CIF Tokyo basis. Concerns about Gulf supply availability encouraged buyers to secure cargoes and consider alternative sources. The higher cost of replacement supplies added to the pressure on the market.
South Korea recorded an increase of around 41% on a CIF Busan basis. The market faced uncertainty over traditional import flows, leading buyers and petrochemical producers to pay closer attention to supply security.
Singapore experienced an increase of approximately 30% in its FOB market. Competition for alternative cargoes supported prices during the period when Middle Eastern supply concerns were strongest.