SunSirs: Analysis of Naphtha-Ethylene Processing Spread (July 21)
July 23 2026 09:06:21 SunSirs (Selena)
On July 21, the CFR Japan naphtha price stood at $855.25/tonne, while the ethylene-naphtha processing spread was -$180.25/tonne—a decrease of $15.50/tonne from the previous period.
With the CFR Japan naphtha price at $855.25/tonne and the ethylene-naphtha processing spread at -$180.25/tonne (down $15.50/tonne), losses in downstream ethylene production have widened further. Consequently, the willingness of olefin producers to maintain operating rates has declined; this is expected to reduce demand for naphtha procurement, exerting moderate downward pressure on naphtha spot prices.
The ethylene-naphtha processing spread remains negative and has widened further, significantly increasing loss-related pressure on ethylene producers. There are strong expectations for subsequent rate cuts and production reductions, signaling a clear contraction in ethylene supply—a factor that provides moderate support for ethylene spot prices.
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