August naphtha exports from India could reach about 750,000 tons- a 20% hike from July volumes, as Reliance Industries Ltd has resumed exports after skipping July spot sales, as per Reuters. However, increased volumes are coming at a time when buyers are slower to commit because of concerns over escalating Brent crude prices squeezing petrochemical margins. Restocking of petrochemicals in China has slowed down since last week. Plastics prices have been underperforming when compared to raw material crude/naphtha. China is Asia's top petrochemical importer and if Chinese demand is slow, Asian petrochemical makers have no incentives to run their naphtha crackers at high rates. Markets have been muted this week on limited buying from South Korean buyers who have adopted a wait and watch stance as there are more naphtha supplies seen in the market.
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