During the early weeks of August 2024, n-Hexane prices continued to decline across APAC due to a combination of factors including lower energy prices, reduced global demand, adverse weather conditions, and sluggish export activities. Throughout July, the n-Hexane market remained under pressure, marked by declining foreign trade orders and cautious procurement as supply and demand dynamics continued to pose challenges. The bearish sentiment persisted, closely linked to the weak fundamentals in the market. Domestic demand fluctuated significantly, particularly from the downstream oil extraction segment, as unfavorable weather conditions in Asia dampened buying enthusiasm. The steady energy prices contributed to the stability in production costs, yet geopolitical tensions and logistical challenges impeded any substantial market recovery, causing manufacturers to adopt a cautious wait-and-see approach due to uncertainty surrounding future demand trends.

In China, the n-Hexane market experienced notable price changes in July 2024. The manufacturing sector faced a downturn and new orders indicating a substantial drop in demand for n-Hexane. Although China's exports saw a 7% increase, it fell short of the anticipated 10% growth due to ongoing trade tensions and slower economic expansion in key markets. The n-Hexane market in China struggled with low demand, poor profitability, and rising overcapacity. Domestic trading volumes for n-Hexane were poor, as downstream procurement remained limited. The ongoing ocean shipping crisis and strong freight rates continued to affect exports. Despite these challenges, cost support from feedstock naphtha increased due to rising crude oil prices driven by escalating tensions in the Middle East. Airstrikes in Lebanon and Tehran targeting senior Hamas leader Ismail Haniyeh further heightened concerns about potential supply disruptions, which bolstered bullish sentiment in the oil market and contributed to an upward trend in n-Hexane prices. However, high inventory levels and low energy prices continued to mitigate the impact of rising feedstock costs on n-Hexane prices.

Demand for n-Hexane remained subdued across the APAC region, particularly due to reduced activity in the downstream oil extraction sector within the food industry. Higher inventory levels and ongoing low demand contributed to the decrease in n-Hexane prices in China. Consequently, procurement activities were low, with buyers hesitant to place new orders amid these persistent challenges. Looking ahead, n-Hexane prices are expected to see some recovery due to the upcoming festival season, which is anticipated to boost demand in the food industry. Additionally, the global procurement activities for n-Hexane may increase due to China's National Day holiday in October, likely to provide a potential uptick in market activity.