The Naphtha Price Trend in India moved sharply higher in Q2 2026, with Light Paraffinic Naphtha CIF Nhava Sheva prices increasing by approximately 43%. The rise reflected India's strong exposure to Middle Eastern supply disruptions and higher replacement costs.
During the early part of the quarter, Gulf-origin cargoes became difficult to secure, forcing Indian buyers to look for alternative supplies while competing with other Asian consumers. This created strong pressure on imported Naphtha Prices in India.
Naphtha is an important feedstock for the petrochemical industry, so changes in its availability can quickly affect procurement decisions. When regular supply becomes difficult to secure, buyers generally have to look for alternative cargoes at higher costs.
During Q2 2026, higher freight and logistical risks added to this pressure. However, the market changed in June as Gulf availability improved, logistical risks declined, and downstream demand weakened.
The second quarter of 2026 was highly volatile for the Indian naphtha market. Light Paraffinic Naphtha imported from Saudi Arabia and priced on a CIF Nhava Sheva basis recorded an increase of approximately 43% during the quarter.
The main reason was a supply shock during the first part of Q2. Gulf-origin cargoes became harder for Indian buyers to secure. Since India is an import-dependent market for naphtha, disruptions in an important supply region can have a direct impact on local replacement costs.
Buyers were therefore required to search for alternative sources. At the same time, Indian consumers were competing with other Asian buyers for available cargoes. This competition increased pressure on the market and contributed to higher import prices.
The Naphtha Price Trend in India consequently remained firm during the first part of the quarter.
The biggest factor behind the Q2 increase was restricted availability of Gulf-origin material. When regular suppliers become difficult to access, buyers cannot always wait for normal supply conditions to return. They need to secure replacement cargoes to maintain operations.
This can make the market more expensive because alternative cargoes may come with higher prices or additional logistical costs.
For Indian buyers, the situation was particularly important because Nhava Sheva is a major import point for industrial raw materials. Any increase in the cost of bringing naphtha into the country can quickly influence the landed cost faced by consumers.
The limited availability of Gulf cargoes also meant that buyers had to compete with other Asian consumers. This added another layer of pressure to the market.
As a result, Naphtha Prices increased strongly during the early part of Q2.
Freight and logistics became another important part of the Q2 market movement. When shipping conditions become uncertain, the cost and risk associated with moving cargo can increase.
For an import-dependent market, this matters because the final cost of naphtha is not determined only by the supplier's selling price. Transportation conditions and availability of shipping can also influence the landed cost.
During Q2 2026, higher freight and logistical risks increased procurement pressure for Indian buyers. Companies looking to secure cargo had to consider both the material price and the difficulty of arranging reliable deliveries.
This contributed to the strong increase seen in CIF Nhava Sheva pricing.