US Naphthalene prices moved lower through May amid oversupply and tepid buying. Early May saw brief tightening in merchant channels supporting gains, but by mid- to late May, steady imports and ample Gulf Coast inventories reversed those gains and pressured spot offers. The market tone remained bearish, with sellers becoming increasingly competitive to stimulate demand, while elevated import and upstream costs intermittently supported offers before being outweighed by abundant supply. Demand across downstream sectors provided inconsistent support, with activity remaining steady yet insufficient to clear excess inventories. The phthalic anhydride and broader chemical intermediates segment maintained stable consumption of Naphthalene but did not absorb inventories aggressively. Construction demand for concrete admixtures and construction chemicals remained flat, while coatings, pigments, and dyes buyers maintained thin procurement patterns. The net effect was a soft demand backdrop consistent with an extended bearish trend. Supply dynamics were mixed: early-month logistics tightened merchant availability, while later vessel inflows eased tightness and replenished storage hubs. The outlook remains under pressure unless demand strengthens.
