Naphtha application market space is large and the industry development prospects are good

Naphtha is one of the petroleum products, also known as chemical light oil and naphtha. It is a light oil produced by processing crude oil or other raw materials as chemical raw materials, and is mainly used as chemical raw materials. Generally speaking, the naphtha fraction refers to the light fraction of crude oil between the temperature at the beginning of atmospheric distillation (ie, the initial distillation point) and 180°C or 200°C. Naphtha is mainly used in pure benzene, solvent oil, butadiene, toluene and other fields.

In the past five years, China’s naphtha production has grown rapidly, from 34 million tons in 2017 to 49.62 million tons in 2021. Judging from the regional distribution of China’s naphtha production, East China is the region with the highest naphtha production in China, with a production share of 42% in 2021, followed by North China with a production share of 22%, and Central and South China. Third, the proportion is 20%. Looking at the specific breakdown, naphtha in my country is mainly produced in three provinces: Liaoning, Shandong and Guangdong.

According to the “China Naphtha Market Analysis Feasibility Research Report 2022-2026” released by the Industrial Research Center, China is a major player in the naphtha market. As a net importer of naphtha, the external demand for naphtha has remained high in recent years. In the past five years, my country’s naphtha imports have shown a continuous growth trend, increasing from 6.68 million tons in 2017 to 7.66 million tons in 2021. In terms of export volume, under the continuous adjustment of the export tax rebate policy, naphtha export volume has dropped significantly in recent years. After 2019, my country’s naphtha export volume has been almost zero. my country’s naphtha imports have shown fluctuating growth in the past five years, from US$3.4 billion in 2017 to US$4.9 billion in 2021.

my country’s naphtha mainly comes from South Korea, Algeria, the United Arab Emirates, Qatar, Russia, India and other countries. Among them, naphtha imported from South Korea accounts for the highest proportion, reaching about 22%, followed by Algeria and the United Arab Emirates, accounting for 16% respectively. and 15%. Regions with relatively high import volumes of naphtha in my country are Beijing, Zhejiang, Shandong and Liaoning.

With the continuous development of my country’s petrochemical industry, my country’s naphtha production has also increased in recent years. However, due to huge domestic demand, my country’s naphtha market has remained stagnant in the past, with demand exceeding supply. In 2021, my country’s apparent naphtha consumption will continue to hit a new high of 57.2 million tons, and it is expected that apparent naphtha consumption will continue to grow in the future.

Industry analysts said that naphtha is one of the processed products of petroleum, has a wide range of applications and has an important position in the domestic market . With the continuous development of my country’s petrochemical industry, my country’s naphtha production and demand continue to rise. However, because domestic supply cannot meet market demand, domestic naphtha imports remain at a high level.