The refined naphthalene market moved higher across China, India, and Vietnam during Q2 2026. Prices increased by around 15–25% across these markets, supported by steady demand from chemical manufacturing, plastics, dyes, construction-related applications, and other industrial sectors. The market remained firm as buyers continued to replenish inventories and downstream consumption showed signs of improvement.
During the quarter, supply conditions were generally balanced. Producers were able to manage availability according to market requirements, while buyers continued their normal purchasing activities. China also maintained export availability, which helped support international supply and prevented the market from becoming excessively tight.
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Raw material and feedstock conditions created occasional cost pressure during the quarter. However, these pressures were managed through stable production and supply planning. The combination of consistent industrial consumption and controlled availability helped keep the market on a positive footing.
The Naphthalene price trend during Q2 2026 was therefore mainly upward. The increase was visible in the major markets, although the exact movement differed between regions. Differences in inventory levels, import costs, trade flows, and local demand created some variation in market performance.
Naphthalene continues to have an important role in several downstream industries. It is used in the production of naphthalene derivatives, dyes, pigments, construction chemicals, and specialty chemical products. Because of these applications, changes in industrial activity can have a direct effect on purchasing patterns.
China Market
China recorded one of the strongest movements during Q2 2026. The refined naphthalene market increased by 24% on an FOB China basis compared with the average level of the previous quarter.
Demand from phthalic anhydride production, dyes, pigments, and chemical manufacturing provided strong support to the market. These industries continued to purchase material regularly, helping producers maintain firm offers during the quarter.
Supply management was another important factor. Availability remained controlled, while industrial consumption stayed steady. This created a balanced situation in which producers were able to maintain market firmness without facing excessive inventory pressure.
The market showed an upward movement in April as procurement activity remained healthy. Buyers continued to cover their requirements, and controlled availability supported the increase.
By June, the market was still moving higher, although at a slower pace. The refined naphthalene value in China increased by 2% compared with the previous month's average. Stable industrial demand continued to provide support, while supply conditions remained manageable.
The Chinese market therefore entered the second half of the quarter with a relatively firm foundation. Regular consumption from downstream industries remained an important source of support for producers and exporters.
Vietnam Market
Vietnam also recorded a 24% increase during Q2 2026 on a CIF Vietnam basis compared with the average of the previous quarter.
The market received support from several downstream sectors, particularly specialty chemicals, pigments, dyes, and construction chemicals. Buyers continued their regular purchasing routines, and import activity remained steady throughout the quarter.
Vietnam's position as an importing market means that international supply availability and trade conditions can have a noticeable effect on local values. During Q2, balanced supply and consistent buying helped the market maintain its upward direction.
The market also moved higher during April as consumption remained steady and availability was generally balanced. Buyers continued to secure material for their industrial requirements, providing support to imported values.
In June, the refined naphthalene market in Vietnam increased by another 2% compared with the average of the previous month. Consistent industrial demand and reliable supply conditions continued to support the market.
The relatively steady movement during June suggests that the Vietnamese market remained healthy rather than experiencing a sudden shortage. Buyers were still active, while import availability was sufficient to meet normal requirements.
India Market
India experienced different movements depending on the market basis. On a CIF India basis, refined naphthalene increased by 18% during Q2 2026 compared with the previous quarter average. Meanwhile, the Mumbai market increased by 24% on an Ex-Mumbai basis.
Several downstream industries supported demand in India. Phthalic anhydride production, dye and pigment manufacturing, and chemical processing remained important sources of consumption. Regular industrial usage helped maintain purchasing activity during the quarter.
Import costs also influenced the Indian market. Since imported material needs to account for transportation, distribution, and handling expenses, changes in these areas can affect the final price paid by buyers. Distributor operations and inventory management also played a role in shaping local market conditions.
During April, the Indian and Mumbai markets showed an upward movement. Purchasing activity was strong, while industrial users continued to require material for their regular production needs.
The market continued to receive support from reliable consumption through the quarter. However, the situation was not identical across all parts of the Indian market. Availability and purchasing pressure varied, leading to differences between import and domestic trading values.
In June, the Indian market increased by 3% compared with the previous month's average. Stable demand and reliable supply requirements continued to support the market.
At the same time, the Mumbai market experienced a 3% decline. Improved availability and weaker purchasing pressure reduced some of the earlier upward momentum. This shows how local inventory conditions can influence prices even when the broader market remains supported.
Key Factors Behind the Market Movement
The Q2 2026 movement was influenced by a combination of demand, supply, raw material costs, and trade conditions. No single factor completely explains the changes across all three markets.
Demand recovery was one of the most important sources of support. Buyers from chemical manufacturing, dyes, pigments, construction chemicals, and related industries continued to purchase material. When industrial activity improves, companies generally need to maintain sufficient stocks for production, which can strengthen market activity.
Inventory replenishment also contributed to the positive market direction. Buyers that had previously kept inventories at lower levels began covering their regular requirements. This helped increase purchasing activity during the quarter.
Supply management played another important role. Balanced availability prevented extreme shortages while still giving producers enough room to maintain firm market conditions. China’s export availability also helped support regional trade flows.
Feedstock-related costs created occasional pressure on producers. Higher input costs can influence production economics and supplier offers. However, efficient supply management helped prevent these pressures from creating excessive market volatility.
Regional differences were also visible. China, Vietnam, and India all recorded increases, but the level of movement was different depending on local inventories, import costs, distributor activity, and purchasing behaviour.
Market Outlook
The Q2 2026 market showed a generally positive direction for refined naphthalene. China and Vietnam each recorded a 24% quarterly increase, while India recorded an 18% rise on a CIF basis and a 24% increase in the Mumbai market.
The June movements were more moderate. China and Vietnam each recorded a 2% monthly increase, while India rose by 3%. In contrast, Mumbai declined by 3% as availability improved and purchasing pressure became weaker.
This mixed June performance suggests that the market remained supported but was also becoming more balanced in some locations. Buyers continued to purchase material, but improved availability reduced the urgency seen earlier in the quarter.
Looking ahead, downstream consumption will remain important for the refined naphthalene market. Demand from chemical manufacturing, dyes, pigments, construction chemicals, and specialty applications will influence how actively buyers return to the market.
Inventory levels will also need to be watched closely. If buyers continue replenishing stocks and industrial consumption remains healthy, suppliers may continue to receive support. On the other hand, comfortable inventories and weaker purchasing activity could limit further increases.
Overall, Naphthalene prices moved higher across the major markets during Q2 2026, supported by steady industrial demand, inventory replenishment, controlled supply, and stable trade activity. While some regional differences appeared toward the end of the quarter, the overall market remained firm. The balance between downstream consumption and material availability will remain an important factor in determining the next stage of market movement.
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Price Watch™ is an India-based, independent raw material price reporting agency that provides real-time price forecasts and data-driven insights into global raw material markets. Price Watch™ specializes in tracking raw material prices, analyzing market trends, and delivering timely updates on plant shutdowns, supply disruptions, capacity expansions, and demand-supply dynamics. The Price Watch™ platform empowers manufacturers, traders, and procurement professionals to make faster, smarter decisions. Leveraging AI-powered forecasting and over a decade of historical data, Price Watch™ transforms market volatility into actionable opportunity.
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