European Hexane markets saw price hike on Wednesday, with Hexane reaching record levels which are highest in the preceding nine years on bullish fundamentals with firm demand and tighter supply in Europe. 

The production in Europe has reduced due to plant outages and the demand from oil extraction and polymerization has been high resulting in a sharp price hike. 

European prices of Hexane were assessed up by Eur 25 per tonne week on week and Eur 45 per tonne since the August beginning. On Tuesday the prices reached nine years high at Eur 1050 per tonne. 

Hexane is a chemical with varied uses within the solvent industry. The applications include industrial cleaning, degreasing, and adhesive solvent. The demand for Hexane in Europe comes predominantly from polymerization and the seasonal vegetable oil extraction from crops including soyabean. 

In the recent weeks, the demand from polymerization in which Hexane is used as a solvent has increased. 

As per ChemAnalyst, “the prices are expected to remain high until the supply pressure is released with new capacity additions. With the supply constrained globally which is affected from logistical constraints arising out of the COVID-19 pandemic the imports of Hexane in Europe would not be able to release the supply pressure in the medium term.”