N-Heptane prices in APAC continued their downward trend in mid-January 2025, primarily due to weak downstream demand from key sectors such as adhesives, coatings, and paints. Despite stable feedstock naphtha prices, oversupply and slowing procurement ahead of the Lunar New Year contributed to market stagnation, keeping price momentum suppressed.

In China, N-Heptane market activity remained subdued, with minimal price fluctuations as demand from key downstream industries continued to weaken. Most buyers purchased only as needed, while some local distributors engaged in slight stockpiling to complete year-end payments. However, large-scale restocking was absent, reflecting an overall cautious sentiment. High inventory levels in the adhesives and coatings sectors made it difficult for manufacturers to balance supply and demand, further straining market movement.

As the Spring Festival approaches, downstream and terminal factories gradually shut down, leading to sluggish market transactions in N-Heptane market. Many buyers had already completed their pre-holiday stocking, resulting in lower procurement activity. While some traders engaged in minor restocking, most buyers remained hesitant, adopting a wait-and-see approach before making bulk purchases. This cautious sentiment further dampened the N-Heptane market circulation.

The cost side remained weak, with stable naphtha prices offering little support to N-Heptane. Limited trading enthusiasm and weak demand from terminal enterprises restricted price movement. Manufacturers maintained cautious production strategies, focusing on inventory control and cash flow stability rather than aggressive pricing.

The demand outlook for N-Heptane remained bearish as the end user construction industry faced reduced activity due to cold weather, particularly in northern regions. Limited new orders and delays in existing projects dampened procurement in the downstream adhesives, coatings, and paints. While some downstream factories completed Lunar New Year-related stocking to sustain operations, their cautious approach and resistance to high-priced goods kept market fundamentals weak. The slowdown in China’s economic growth further impacted consumer spending, lowering demand for products reliant on N-Heptane.

In South Korea, the N-Heptane market followed a similar trend, with weak demand limiting procurement activity. Construction projects remained largely stalled due to cold weather, while weak industrial output and cautious business confidence curbed demand. Limited new orders and high inventory levels further pressured market dynamics. As per the latest report, South Korea's industrial output fell 0.7% in recent month, worse than expected, due to slowing exports and weak business confidence. This slowdown can also be exacerbated by factors like severe cold weather, tariff uncertainties by USA, which is impacting and reducing the petrochemical demand including N-Heptane in industries like construction.

As per ChemAnalyst, N-Heptane prices are expected to remain under pressure in the coming weeks. The Lunar New Year holidays in APAC are likely to pause procurement activity, while ample supply and weak demand in global markets, including South Korea, will sustain a bearish outlook.