N-hexane prices in the Asian market remained stagnant in early February 2025 as weak feedstock naphtha costs and subdued downstream demand limited price movement. Post-Lunar New Year restocking activities failed to significantly boost procurement, while European prices edged higher, supported by rising feedstock and energy costs despite mixed demand across key sectors.

In China, n-hexane supply remained ample as manufacturers balanced production levels amid fluctuating demand. The Lunar New Year holiday led to lower operating rates, with several plants reducing output or undergoing maintenance. Weak feedstock naphtha prices limited production costs, while oversupply concerns persisted due to expanding domestic capacity. Export activity remained sluggish, with shipments to Southeast Asia slowing on weak regional demand.

Downstream demand in China remained tepid, particularly in the pharmaceutical and adhesive sectors. The pharmaceutical industry, a key consumer of high-purity n-hexane, saw declining activity as companies like Merck & Co. paused shipments of its Gardasil vaccine to China, citing weaker demand. AstraZeneca also reported lower sales amid regulatory pressures. Simultaneously, the construction sector's slowdown curbed demand for paint, coatings, and adhesives, further restraining n-hexane consumption.

In South Korea, cautious procurement persisted across downstream sectors. Adhesives and edible oil extraction industries showed gradual recovery, but construction activity remained sluggish, delaying infrastructure projects and reducing demand for coatings. Dow’s Q4 2024 report highlighted weaker construction chemical sales across Asia Pacific, underscoring continued challenges in the building sector.

In Germany, n-hexane prices experienced a slight increase as rising feedstock naphtha and energy costs pressured production margins. Major petrochemical producers, including LyondellBasell, reported profitability challenges, with LyondellBasell posting a $603 million loss attributed to high operational costs and weak European market conditions. Despite elevated costs, manufacturers maintained cautious production strategies to prevent oversupply.

Demand for n-hexane in Europe was mixed. The edible oil extraction sector provided some support to n-hexane consumption, bolstered by global vegetable oil production projected to reach record levels in the 2024/25 crop year, driven by higher soybean and palm oil output. However, lower sunflower oil production in Russia and Ukraine raised supply chain concerns. Meanwhile, coatings and adhesives sectors—tied to the struggling construction industry—remained subdued amid high building costs and labor shortages. Dow’s Q4 earnings reflected weaker sales in construction chemicals across Europe, reinforcing the region's demand challenges including n-hexane.

N-hexane prices in Asia are expected to remain stable in the near term, with restocking activity picking up gradually but limited by cautious procurement. In Europe, high feedstock and energy costs may continue to support price stability, though sluggish construction and industrial demand could cap significant gains.