The US Hexene market experienced a period of flux in the first half of January 2025, marked by a complex interplay of factors influencing price trends. The initial months saw a bullish trend, with exports (FOB Texas) prices inclining by 2.5% during the first half of January. This upward movement was directly linked to the resolution of a looming port strike by the International Longshoremen's Association (ILA). The averted port strike removed a significant logistical bottleneck to the efficient movement of goods. This positive development is anticipated to stimulate increased purchasing activity and, subsequently, upward price adjustments for Hexene in the near future.

The potential for a major port shutdown had spurred preemptive purchasing throughout November and December. This pre-emptive buying, designed to avoid anticipated January price increases, resulted in high Hexene inventory levels. This, consequently, exerted downward pressure on prices in Early January. Market sources observed that warehouses remained full, indicating the substantial amount of Hexene stockpiled in anticipation of the averted strike. This created a situation where some suppliers, seeking to liquidate cheaper, older Hexene inventories from December, became more aggressive in the market. As a result, an unusual dynamic of both price increases and significant stock levels were observed in the Hexene market.

The impact of the port strike resolution did not seem uniform across the market. Although the removal of the logistical bottleneck initiated a gradual resumption of normal operations, some delays at public warehouses persisted. These lingering delays continued to affect the overall efficiency of the Hexene supply chain. The disruption in the smooth flow of goods impacted the overall movement of Hexene, and sources predicted a return to normal operations only by mid-to-late February. The combination of lingering delays and substantial existing Hexene inventories meant that the full impact of the averted strike on prices wouldn't be immediately apparent. Therefore, while early January showed a positive price trend for Hexene, the complete effects of the resolution were expected to become fully visible later in January and into February. The overall expectation was that these logistical issues would gradually resolve, leading to increased export activity and, consequently, a reduction in Hexene inventory levels. Further complicating the situation was the news that some producers might reduce operating rates due to persistent logistical issues and potentially declining margins resulting from rising feedstock Ethylene prices.

As per ChemAnalyst Pricing Intelligence, the Hexene market in the USA is expected to see further price increases in February 2025, driven by the anticipated inventory drawdown. However, the extent of these increases will depend on the speed of inventory reduction and the continued resolution of logistical bottlenecks. The impact of the pre-emptive buying in late 2024 will still be felt, moderating the overall price increase.