For the Quarter Ending September 2024
North America
In Q3 2024, the n-hexane market in North America witnessed an increase in prices, with notable factors driving this upward trend. Various elements contributed to this surge, including robust demand from downstream industries, limited supply availability, and escalating production costs. This heightened demand, coupled with stable domestic production, contributed to the upward trend in prices.
Additionally, the market saw steady procurement activities and active trading operations, further supporting the price increases. Energy costs, including natural gas prices, played a crucial role in maintaining the positive price momentum.
Specifically focusing on the USA, the region witnessed the most significant price changes during the quarter. Overall trends indicated a seasonality effect, with prices showing a correlation between demand fluctuations and supply dynamics. Despite a substantial decrease from the same quarter last year, recent price changes recorded a more modest decline from the previous quarter in 2024. Notably, there was a slightly price difference between the first and second half of the quarter, signaling a consistent upward trajectory in the pricing environment.
APAC
In Q3 2024, the n-Hexane market in the APAC region experienced a significant decline in prices, mainly attributed to weak demand and high inventory levels. Factors such as reduced downstream oil extraction sector activity, coupled with subdued global demand, contributed to the downward pressure on prices. The market was further influenced by adverse weather conditions, logistical challenges, and geopolitical tensions, which hindered any potential price recovery. China, in particular, witnessed the most substantial price changes, reflecting the overall negative trend in the region. The quarter saw a notable -15% decrease from the same period last year, with a further -8% decline from the previous quarter in 2024. The comparison between the first and second half of the quarter revealed a significant drop, indicating a continuous downward trajectory for n-hexane market. The latest quarter-ending price for n-Hexane in China stood at USD 1216/MT FOB Qingdao. The market sentiment remained negative due to sluggish global demand, new capacity additions during the quarter.
Europe
In Q3 2024, the n-Hexane market in Europe experienced a period of increasing prices, driven by various significant factors. The market was influenced by robust demand from downstream industries, particularly in the oil extraction sector. This heightened demand, coupled with stable domestic production, contributed to the upward trend in prices. Additionally, the market saw steady procurement activities and active trading operations, further supporting the price increases. Energy costs, including natural gas prices, played a crucial role in maintaining the positive price momentum. Specifically focusing on the Netherlands, the region witnessed the most significant price changes during the quarter. Overall trends indicated a seasonality effect, with prices showing a correlation between demand fluctuations and supply dynamics. Despite a substantial -23% decrease from the same quarter last year, recent price changes recorded a more modest -1% decline from the previous quarter in 2024. Notably, there was a 5% price difference between the first and second half of the quarter, reflecting market volatility. The quarter-ending price for n-Hexane in the Netherlands stood at USD 1152/MT FD Rotterdam, signaling a consistent upward trajectory in the pricing environment.
For the Quarter Ending June 2024
North America
Q2 2024 has been marked by a persistently negative pricing environment for n-hexane in North America, driven predominantly by adverse weather conditions, ample inventories, and subdued downstream demand.
Heavy rainfall and unfavorable weather significantly impacted the harvest of key crops like rapeseed and sunflowers, diminishing the need for n-hexane in oil extraction processes. Compounding this were high stock levels, which exerted substantial downward pressure on prices amidst a low-demand backdrop. Despite a slight recovery in feedstock naphtha prices due to rising crude oil prices, the cost pressure on n-hexane remained limited, leading to an overall bearish market sentiment.
In this context, the USA experienced the maximum price changes. The Q2 2024 n-hexane market in USA reflected a pronounced downward trend compared to the same quarter last year. From the previous quarter in 2024, n-hexane prices fell slightly, highlighting a steady decline. The overall trend was negative, with market factors such as high inventory levels, weak downstream demand, and adverse weather conditions significantly influencing price dynamics. This sustained decrease underscores the challenging market conditions, reflecting a consistent downward trajectory throughout Q2 2024.
APAC
The second quarter of 2024 has seen a mixed sentiment in n-hexane pricing in the APAC region influenced by various factors. However, the South Korea market experienced the maximum price changes during this period. Prices have been influenced by several factors including the improve demand and high feedstock naphtha prices.
The first two months of 2024 has seen a significant increase in n-Hexane prices in the APAC region. In the South Korea, the trajectory of n-hexane prices was particularly pronounced. The market saw an upward trend, marked by an 29% increase compared to the same quarter last year, reflecting a strong recovery and escalating demand. This surge was further compounded by a 1.2% rise from the previous quarter, underscoring consistent market momentum. The first half of the quarter recorded notable price gains, indicative of sustained procurement activities and supply chain adjustments in response to geopolitical tensions and rising freight rates.
By the end of the quarter, the price of n-hexane in the South Korea reached USD 1199/MT, FOB Busan. This steady incline in prices highlights a positive pricing environment, driven by strong domestic demand and strategic market positioning by Korean exporters.
Europe
Q2 2024 has been marked by a persistently negative pricing environment for n-hexane in the European market, driven predominantly by adverse weather conditions, ample inventories, and subdued downstream demand. Heavy rainfall significantly impacted the harvest of key crops like rapeseed and sunflowers, diminishing the need for n-hexane in oil extraction processes. Compounding this were high stock levels, which exerted substantial downward pressure on prices amidst a low-demand backdrop. Despite a slight recovery in feedstock naphtha prices due to rising crude oil prices, the cost pressure on n-hexane remained limited, leading to an overall bearish market sentiment.
Germany experienced the maximum price changes within this context. The Q2 2024 n-hexane market in Germany reflected a pronounced downward trend, with prices decreasing by 28% compared to the same quarter last year. From the previous quarter in 2024, n-hexane prices fell by 2%, highlighting a steady decline. The overall trend was negative, with market factors such as high inventory levels, weak downstream demand, and adverse weather conditions significantly influencing price dynamics.
The latest quarter-ending price for n-hexane in Germany was USD 1090/MT FD Hamburg. This sustained decrease underscores the challenging market conditions, reflecting a consistent downward trajectory throughout Q2 2024.
For the Quarter Ending March 2024
North America
The first quarter of 2024 has seen a mixed sentiment in n-hexane pricing in the North America region influenced by various factors. However, the USA market experienced the maximum price changes during this period. Prices have been influenced by several factors including the improved demand and high feedstock naphtha prices.
The market experienced an upward trend in prices in January and February, driven by factors such as increased demand from the downstream food, paint and coating industries. The construction boom in the region, supported by government investments and streamlined regulations, has led to a surge in demand for essential materials like n-hexane. Additionally, supply constraints and an increase in the price of feedstock Naphtha contributed to the rise in production costs for n-hexane, further driving up prices. While in March, the prices of n-hexane declined due weaknesses in U.S. construction spending, as reported by the Commerce Department.
The market was influenced by factors such as high feedstocks price, production costs, and demand from downstream industries.
APAC
The first quarter of 2024 has seen a mixed sentiment in n-hexane pricing in the APAC region influenced by various factors. However, the South Korea market experienced the maximum price changes during this period. Prices have been influenced by several factors including the improve demand and high feedstock naphtha prices.
The first two months of 2024 has seen a significant increase in n-Hexane prices in the APAC region. This upward trend can be attributed to various factors that have influenced market prices. One of the key drivers has been the overall improvement in demand for n-Hexane, particularly in industries such as food industry during before and during the lunar year, automotive and electronics and. These sectors have experienced strong growth, leading to higher demand for n-Hexane in the production processes. Additionally, supply chain disruptions and geopolitical tensions in the Middle East have contributed to the price increase. While in March, price declined due to lower consumer demand and oversupply in the market.
The overall trend in South Korea has been positive, with n-Hexane prices showing an increase of 22% from the previous quarter in 2024. In the South Korean market, the quarter-ending price for n-Hexane stood at USD 1135/MT FOB Busan.
Europe
In Q1 2024, the n-Hexane market in Europe experienced a significant decrease in prices, reflecting an overall negative pricing environment. Several factors influenced these price declines, including reduced demand from downstream industries, and limited trading activities. Further the low natural gas prices combined with subdued demand from the construction sector and the paint and coating industry, resulted in decreased prices.
In the Netherlands, which saw the maximum price changes in the region, the market followed a similar downward trend. Limited trading activities and low procurement efforts contributed to an overall negative market sentiment. The capacity utilization rate in the industry remained low, further exacerbating the stagnant market environment. When comparing Q1 2024 to the same quarter of the previous year, there was a significant decrease in n-Hexane prices. Additionally, the price decline from the previous quarter in 2024 was recorded at -23%.
Overall, the pricing environment remained negative throughout the quarter. As the quarter concluded, the assessed price for n-Hexane in the Netherlands stood at USD 1030/MT FD Rotterdam, reflecting the prevailing downward trend in prices.
For the Quarter Ending December 2023
North America
In Q4FY23, n-hexane prices in the USA market exhibited a mixed sentiment, showcasing diverse trends over the three months. The pricing dynamics unveiled a substantial increase in n-hexane prices during October, propelled by robust cost support and stable procurement in the domestic market. However, November witnessed a stable downward trajectory in prices, and this trend persisted with a significant fall in December.
The December price decline was influenced by factors such as low natural gas prices and reduced demand from downstream sectors. This reduction can be linked to ample gas supplies resulting from prolonged mild weather conditions, despite an ongoing cold snap. The mild weather led to decreased gas consumption for heating purposes and reduced production by energy-intensive companies, contributing to an overall decline in n-hexane demand.
Simultaneously, the UN's Food and Agriculture Organization (FAO) reported a global decline in food prices in 2023, particularly in the vegetable oil price index, which experienced a significant drop of 32.7%. This decline in vegetable oil prices impacted n-hexane demand, given its common usage as a solvent in the extraction of vegetable oils. The pricing trends in the USA market for n-hexane in Q4FY23 highlight the intricate interplay of factors shaping the market dynamics, including supply conditions, weather impacts, and global trends in food prices.
APAC
In Q4FY23, n-hexane prices in the APAC market exhibited a positive trend throughout the final quarter. The first month witnessed a stable upward trajectory, supported by steady feedstock naphtha prices and sufficient stockpile availability to meet demand. However, as the quarter progressed, n-hexane prices experienced a significant increase in the last two months. This upward movement was primarily driven by a surge in demand from the downstream paint and coating industries within the automobile sector. Notably, according to the China Association of Automobile Manufacturers (CAAM), China's overall auto sales exceeded 30.09 million units during the quarter, reflecting a substantial 12 percent increase. Furthermore, new energy vehicle sales recorded a remarkable 37.9 percent year-on-year surge, surpassing 9.49 million units. The Industrial Solvent sector faced disruptions due to the sudden operational halt by Kelly-Moore Paints, a major solvent supplier in the US. This interruption impacted the global supply chain, contributing to the surge in n-hexane prices. As of December, n-hexane prices in China were assessed at USD 1889/MT FOB Qingdao, underscoring the intricate dynamics of demand, industry disruptions, and global market conditions influencing n-hexane prices in the quarter.
Europe
In Q4FY23, Prices of n-hexane observed mixed sentiment in the European market. The pricing dynamics revealed a substantial increase in n-hexane prices in the Netherlands during October, attributed to robust cost support and stable procurement in the domestic market. However, November witnessed a stable downward trajectory in prices, and the trend continued with a significant fall in December. The December price decline was influenced by factors such as low natural gas prices and reduced demand from downstream sectors. This reduction can be linked to ample gas supplies resulting from prolonged mild weather conditions, despite an ongoing cold snap. The mild weather led to decreased gas consumption for heating purposes and reduced production by energy-intensive companies, contributing to an overall decline in n-hexane demand. Simultaneously, the UN's Food and Agriculture Organization (FAO) reported a global decline in food prices in 2023, particularly in the vegetable oil price index, which experienced a significant drop of 32.7%. This decline in vegetable oil prices impacted n-hexane demand, given its common usage as a solvent in the extraction of vegetable oils. In the downstream textile industry, despite market openings in western countries during the festive season, the Indian market experienced a downturn in exports. Ready-made garments, a key component of the textile export portfolio, witnessed a notable decline of 15%. Manufacturing in the eurozone remained in contraction in December 2023, as reflected in purchasing managers indices (PMIs), which indicated steep declines in output and employment. As of December, n-hexane prices in the Netherlands were assessed at USD 1275/MT FD Rotterdam, encapsulating the diverse factors influencing pricing trends in the European market.
