As of mid-October 2024, n-Hexane prices across the Asia-Pacific (APAC) region experienced a noticeable decline, reflecting ongoing challenges stemming from weak demand and elevated inventory levels. The downturn, evident in markets like China and India, can be attributed to a combination of factors, including a slowdown in downstream sectors such as oil extraction, adhesives, and paints and coatings. With the Golden Week holiday recently concluded, procurement activities remained subdued, further contributing to the bearish market sentiment. As a result, the n-Hexane market lacked strong support, leading to further price declines under the weight of oversupply and weak market sentiment.

In China, n-Hexane prices continued to slide. The price drop followed a period of oversupply coupled with a lack of downstream demand, exacerbated by a weak performance in the real estate sector. From January to September 2024, sales by the top 100 real estate companies dropped by around 39% year-on-year, significantly dampening construction-related demand for n-Hexane in paints and adhesives. The decline in global crude oil prices, which continued until September 2024, placed additional downward pressure on n-Hexane costs as feedstock naphtha prices followed suit. This combination of factors has left traders uncertain about short-term price stability.

In South Korea, n-Hexane prices mirrored the decline observed in China, largely due to persistent oversupply and a sluggish construction market. Petrochemical exports fell by 0.6% year-on-year in September, reflecting weak domestic consumption and export activity. A recent three-day public holiday in mid-September disrupted market activity, while new orders for manufactured goods fell at the fastest rate in two years, compounding the bearish sentiment. Stocking operations are primarily focused on buying in response to demand, leading traders to offer discounts and take orders. This has resulted in an increase in low-end market offers and a decrease in the speed of goods circulation. As a result, n-Hexane market momentum is weakening, with many participants adopting a wait-and-see approach, while the demand side fails to provide sufficient support for the market.

In India, the n-Hexane market faced similar challenges, with prices pressured by low import prices and weak demand. Meanwhile, despite a 5.1% year-on-year increase in segment revenue for Reliance Industries in Q2 FY25 to Rs. 155,580 crore, the company reported a 23.7% decline in profit to Rs. 12,413 crore due to unfavorable demand-supply dynamics and weak downstream chemical deltas.

Looking ahead, n-Hexane market conditions are expected to remain weak in the coming weeks due to persistent oversupply and high inventories, especially in Asia. Manufacturing activities might ease down prices of the commodity as current oversupply in the market is anticipated to keep prices low.