European naphtha exports from the EU, UK and Norway rose to a three-month high in August as weak regional demand left surplus barrels available for shipment, despite signs of a modest recovery in petrochemical consumption.
Exports reached 1.448mn metric tonnes (t) in August, up by 14pc from 1.269mn t in July, Kpler data show. Volumes remained below the 1.794mn t shipped in August 2025, however.
Italy and Spain were the region's biggest exporters, loading 379,000t and 368,000t, respectively. Exports to the US jumped to 165,000t from 30,000t in July, while shipments to Japan also increased on the month.
Petrochemical demand improved somewhat in the last week of August as higher Rhine water levels enabled larger volumes of naphtha to move inland to European crackers along the Rhine. About 45,000t moved from independently held stocks in the ARA hub to inland crackers during the week, compared with volumes of 20,000-30,000t a week in recent months, according to consultancy Insights Global.
However, petrochemical market participants told Argus the ethylene market remains oversupplied despite lower cracker runs, while coastal crackers with greater feedstock flexibility continued to favor LPG over naphtha where possible.
Weak demand was also reflected in imports. Naphtha inflows into the EU, UK and Norway fell to 365,000t in August, the lowest since April, and down from 820,000t in July, Kpler data show.
Support for naphtha demand instead came from the gasoline sector. But participants said blending slowed in recent weeks as steep backwardation discouraged additional activity despite strong economics. The gasoline-naphtha spread widened above $400/t at the end of August for the first time since June 2022 and reached as high as $488/t last week.
