Polymer Input Prices Witness a Year-long Decline
Date: 07-03-2023 Indian companies are showing an increased interest in purchasing Russian naphtha as an economical feedstock for their refineries and petrochemical plants due to the price restrictions imposed by Western nations. The price limits have been put in place by the Group of Seven nations, the European Union, and Australia with the aim of discouraging Moscow from funding its conflict with Ukraine. These limits set a maximum of $45 per barrel for refined products, including naphtha and fuel oil. India’s interest in ramping up Russian oil products imports comes after the world’s third largest crude importer became Moscow’s top oil client after China as the West shunned supplies from Moscow. Cheap Russian crude has shaved costs at Indian refiners and boosted margins. Reliance Industries Ltd., the owner of the largest refining complex in the world, boosted its imports of Russian naphtha imports in February to about 222,000 tones, ship tracking data from Refinitiv showed. Since March 2022, the cost of naphtha in India has undergone a significant decline of almost 38%. This decline can be attributed to the downward trend in crude oil prices and the economic slowdown in China. As of March, the current price of naphtha stands at approximately $740/MT which is a notable drop from the previous year's price of $1190/MT. However, since the beginning of 2023, naphtha prices have remained range-bound between $700-740/MT. This range is similar to the pre-Russia-Ukraine conflict levels. In July 2021, naphtha prices breached the $700 level for the first time, and since then, the prices have consistently settled around these levels after any significant fluctuations, including the ones observed after the Russia-Ukraine conflict. PolyMart does not provide any assurances or guarantees regarding the reliability, accuracy, completeness, or quality of the information available on its website, app, or through any of its services. Therefore, the company is not responsible for any errors, omissions, loss, or damage that may result from the use of the website or app. It is advisable for users to exercise caution and independently verify any information obtained from these sources before relying on it for any purpose.
