The US Naphtha market continued to feel downward pressure during early January 2026 because of continued oversupply and low demand. Stable and high refinery utilization produced uninterrupted production of naphtha, supported by ample availability of crude oil in addition to no disruptions from operational issues. Inventory levels remained at comfortable levels, which contributed to reduced urgency to buy among auto makers and other industry players. Additional bearish sentiment towards naphtha, as evidenced by weak and neutral crude oil fundamentals, remained consistent across market participants due to the abundance of mixed inventory signals and an adequate domestic supply of naphtha, despite reduced import levels and depressed production forecasts later in the year. Only on-ship imports into China and a decline in production during the last quarter of the year were likely to drive a pull-on US export. Lower than normal downstream demand by petrochemical producers in China remained a deterrent to optimistic expectations of growth in US export sales in the coming months due to the increased imports of substitute feedstocks by many Asian cracker plants.
Selenis has effectively manufactured recycled PET chips using terephthalic acid sourced from Circ®, a textile-to-textile recycler based in Virginia. The chip production took place through a series of batches at Selenis' pilot plant in San-Giorgio, Italy. By utilizing inputs recovered from polycotton textile waste, Selenis has created high-quality PET chip, which has been further processed into DTY yarn. This yarn will play a crucial role in product development as Circ prepares for additional capsule launches. Selenis is leveraging the success of this initial collaboration phase and is committed to advancing towards an offtake partnership to support Circ's inaugural industrial facility.
Eduardo Santos, Head of Corporate Strategy at Selenis, remarked that the monomer synthesis showed a performance comparable to virgin terephthalic acid. He expressed optimism about the consistent quality of Circ's monomer output and anticipated future commercial success. Santos pointed out that the Circ partnership complements Selenis's existing mission and goals for a more sustainable textile industry. He further stated their anticipation of expanding upon this collaboration and providing support for Circ's forthcoming commercial production trials.
