The Tetradecane market in China showed significant activity in January 2025, with prices experiencing slight fluctuations. Tetradecane, a hydrocarbon with various industrial applications, continued to be a key base material in the chemical industry. During the month, the prices of Tetradecane saw a nominal increase of about 1% compared to December 2024.

This marginal rise was because of the growing demand from the manufacturing sector, which has been recovering from the economic slowdown experienced in the previous year. The increased industrial activity has led to a higher usage of Tetradecane, providing some upward pressure on its selling price.

China's automobile sector saw steady growth in January 2025. As per the China Passenger Car Association (CPCA), passenger car production reached 2.11 million units, a 3.6% increase year-on-year. New energy vehicles (NEVs) segment in particular performed well, with production and sales increasing by 25.8% and 10.5%, respectively.

This growth in the automobile sector, especially in NEVs, contributed to the overall demand for Tetradecane. It is a crucial material used in the production of automotive coatings and lubricants. Similarly, the paints and coatings sector in China experienced positive trends in January 2025.

The market saw a shift towards more sustainable, water-based coatings due to environmental regulations. This change increased the demand for eco-friendly raw materials, including Tetradecane, which is used in the production of these coatings. The cosmetics and personal care market in China also showed robust growth during this period.

This growth significantly contributed to the demand for Tetradecane, as it is used as a base material in various formulations within this sector. The increased demand for luxury beauty products and eco-friendly personal care items also added upward pressure on Tetradecane prices, although the impact was relatively moderate.

On the other hand, the agrochemical sector in China faced challenges in January 2025 due to regulatory changes and trade tensions. Despite these challenges, the sector showed stability, with constant orders for agrochemicals supported by the demand for crop protection and increased agricultural productivity. This consistency in demand also affected the Tetradecane prices, as it is used as an intermediate in the production of agrochemical products.

In addition to sectoral factors, January 2025 saw a significant increase in crude oil prices in China, driven by geopolitical tensions and supply constraints. This increase in crude oil prices resulted in relatively higher production costs for Tetradecane, contributing to the moderate growth in Tetradecane prices.

Looking forward, the outlook for the Tetradecane market in China remains positive, with expectations of continued growth in demand. The price forecasts for Tetradecane by ChemAnalyst indicate fluctuations over the next six months, with overall price trends showing a significant growth trajectory.

The firm has projected the prices to increase by approximately 2-4% month-on-month during the first quarter of 2025. In addition, the government's focus on reviving the overall domestic demand and supporting industrial growth is expected to further boost the Tetradecane market in the coming months.