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.
For the Quarter Ending September 2023
North America
The improvement in the WTI prices during the third quarter provided ample impetus to the n-Hexane prices in the US market during the third quarter of 2023. The rising cost support from raffinate and heavy aromatic naphtha prices, coupled with ample demand from the paints and coating industry, have culminated in the rising prices of n-hexane. The performance of the construction industry remained robust throughout the quarter; however, the output has slowed in comparison to the previous quarter. WTI prices rose sharply in the second half of the quarter as the production cuts announced by OPEC+ ensured bullish sentiment in the market. Meanwhile, the prices of n-Hexane in the US rose consistently in the first two months while the prices stabilized in the third month of the quarter. Thus, after the conclusion of the third quarter, n-Hexane prices in the USA were assessed at USD 1170 per MT on a FOB basis.
APAC
n-Hexane experienced mixed sentiments in the Asia-Pacific market during the third quarter of 2023. The quarter began with a decline in prices attributed to weak cost support and stagnant demand pressure from downstream industries. However, the market dynamics shifted in July and August, resulting in a significant price improvement driven by increased demand from the solvent industry and high crude oil prices. In the Chinese domestic market, n-Hexane prices declined in July 2023 due to steady demand fundamentals and ample cost support from the upstream sector. Stable demand from downstream industrial solvents and the oil extraction industry contributed to this pricing trend. Although there was an improvement in procurements, the presence of abundant stock levels limited changes in pricing sentiment. Domestic production remained robust, resulting in ample inventory levels in both the domestic market and at ports. Production cuts announced by Saudi Arabia and Russia supported oil prices, which had risen consistently in the global market during the first half of the third quarter, increasing the cost pressure on Heavy Aromatic naphtha and its derivatives. Additionally, Sinopec raised its prices as the market recovered after an underwhelming period in the previous two months. The upstream Benzene market steadily rose in response to the strengthening crude oil prices. Downstream procurement was robust, with active queries from market participants. Demand from the edible oil extraction industry improved in anticipation of the upcoming festive season in the Asian market. Meanwhile, demand from the pharmaceutical industry remained largely stable, with limited changes in new orders. As of the end of September 2023, n-Hexane prices were assessed at USD 960 per MT FOB Qingdao, reflecting the evolving market dynamics and the various factors influencing pricing in the Asia-Pacific region.
Europe
In Europe, n-Hexane prices displayed a bearish trend throughout the third quarter of 2023, primarily driven by depressed demand dynamics and limited cost support from upstream sources, resulting in limited procurement activities. In the Netherlands, n-Hexane prices experienced a continuous decline over the course of the third quarter of 2023. The bearish market conditions can be attributed to both supply-side dynamics and demand fundamentals. Despite some improvements in crude oil prices, these factors had limited influence on n-hexane prices due to weak procurements and stable inventory levels. The construction industry's lackluster performance was highlighted in Dow Chemicals' quarterly report ending June 2023, contributing to the subdued demand in the n-Hexane market. Demand from downstream industries, such as oil extraction and others, remained stagnant. Olefins, aromatics, and other related sectors faced challenges, including diminishing margins, weak demand, and limited procurement activities, primarily due to persistent competition from Asian imports and declining energy prices. Europe's advanced LNG procurements for the upcoming winter, in contrast to the previous year's trends, also played a role in these market dynamics. As of the end of September 2023, n-Hexane prices were assessed at USD 1499 per MT FD Rotterdam, reflecting the evolving market conditions and the various factors impacting pricing in the Netherlands.
For the Quarter Ending June 2023
North America
The n-hexane prices in the second quarter of 2023 showed mixed trends with the overall bearish outlook in the American markets owing to the sentiments related to the crude oil market. The value per unit quantity(USD/ton) exported from American ports fluctuated, showing mixed trends with a variation of USD 1.5220659 per ton to USD 1.4940663 per ton from April to June noted at the American ports, which is further expected to follow the similar trend in direct relation with the crude oil price fluctuations as n-hexane is produced directly from crude oil through precision refining and distillation that is subsequently used in extraction processes for solvents such as soybeans, flax, peanuts, and safflower seed. Further, the demand coming from the downstream textile and printing industries is to stay on the stable side as it is actively utilized as a cleaning agent in the textile, furniture, shoemaking, and printing industries. On top of that, the underwhelming performance of the construction industry and cheaper imports reaching the American ports from the producing nations had further hampered the procurement activities in the local market and eased the cost support, respectively, both culminating in further price decline.
Asia Pacific Region
The outlook for n-hexane in the Asian market has been positive, observing an overall increment in the entire second quarter. However, it witnessed a slight decline in the second half of Q2 from mid-May to June. The market was bullish owing to the growing regional demand for n-Hexane from downstream textile and furniture industries, which led to a marginal increment in its prices. On top of that, n-Hexane's limited supply as a result of limited production activities resulted in the n-hexane's price increase. At the same time, crude oil production cut from May month onwards has further pushed up the prices of n-hexane in the Asian markets. Furthermore, the market had an adequate inventory in place along with operating rates running on the smooth side and no congestion reported in the Chinese ports culminating in the increased prices of n-hexane. The enterprises followed up on their purchases just to fulfill their needs. Buyers showed reluctance towards high-priced goods. Nevertheless, in the Chinese market, prices are expected to take an uptrend in the coming quarter in regard to the optimistic demand from the downstream textile industry.
Europe
The n-hexane price in the European region witnessed a bullish trend across the entire Q2 of 2023 in the presence of promising demand incoming from the downstream textile and printing ventures as industries were willing to increase the production in order to compensate for declining inventories in the region as supply was on the low side. Further down the line, high demands were received from domestic and overseas suppliers, thereby governing high operating costs. Further prices have increased amidst healthy trading activities, and currency exchange-related price fluctuations from Euro to USD have been appreciated with a monthly increment of 1.29 %. In Germany, a steady flow of cheap imports from the Asian nations in between the unstable energy market and stable demand incoming from the downstream chemical industry has further eased the prices. Germany's IFO Business Climate index has fallen, and market participants have witnessed a decline in the prices towards the end of Q2 2023, specifically in Germany. In June, the IFO Business Climate Index fell to 88.5 points, down from 91.5 points in May. Further stable crude oil and LNG market is expected to keep the feedstock cost pressure on the softer side.
For the Quarter Ending March 2023
North America
In Q1 2023, the price of n-hexane surged in the first month due to an uptick in the feedstock crude market along with an increase in spot purchasing activities in the region. Demand fundamentals remained high in the US market, and the sentiments induced after the announcement played the major driving factor behind the higher price trend. However, prices declined in Feb 2023 and March 2023 on the back of weak market fundamentals and product oversupplies. In terms of the downstream market, the demand for n-hexane from the downstream textile and printing industries remains lackluster, and feeble crude oil prices also declined the production cost among the significant enterprises.
Asia Pacific region
In Q1 2023, n-hexane trading fundamentals elevated, and an uptrend in feedstock crude oil provided support to the price trend. The incline in price was attributed to the increase in purchasing activities from the domestic and overseas markets and the constant demand that this product was receiving from footwear and textile companies for downstream processing. In Feb 2023 and March 2023, the n-hexane market slumped due to fading demand and relaxation in the upstream crude oil market. In March 2023, the n-hexane price in China was USD 1494/ton FOB Qingdao. When compared with the previous quarter, the Asia-Pacific region suffered from bearish demand and lackluster downstream requirements.
Europe
This quarter, the n-hexane market remains under enormous pressure from feeble demand and recession fear, which declined the price trend for the domestic and overseas markets. In Germany, the n-hexane price during March 2023 was USD 1560/ton FD Hamburg. The declining regional demand for n-Hexene from downstream textile and furniture industries has led to a decrease in its prices. However, n-Hexane's sufficient supply because of moderate production activities was the cause of the price decrease. Inventories were on the higher end pressurizing the producers to stock them out. n-hexane market to be buoyed by arbitrage flow and supply cutback.
For the Quarter Ending December 2022
North America
The markets in North America and Europe were identical in the last quarter of 2022. The commodity's price continued to fall in the first two months in the United States as a result of lower demand from businesses downstream. As a result, suppliers were lowering their quotes to clear out stocks while upstream businesses were maintaining average production rates. Even though there was still a moderate amount of demand, the price of this product went up because there was only a limited amount of it available because upstream companies were still doing average production, which made the price of this product go up.
APAC
n-Hexane prices increased in the Asia-Pacific region in this quarter. The product's increased demand and the commodity's availability in warehouses and inventories were the primary factors contributing to the price increase in China. There was sufficient supply of this commodity to meet the increased demand from footwear, furniture, and textile manufacturers in the first half of this quarter. However, even though demand decreased in December, there was only a limited supply of this product in warehouses and inventories due to the impact of Covid- 19 curbs on upstream production. In terms of India, there was a lot of demand for this product in the first two months, and in December, it got reduced, which led to price cuts.
Europe
This quarter, the market for n-Hexane was the same across all of Europe. In terms of Germany, the price of this commodity continued to fall in the first two months due to decreased demand from downstream businesses that had restricted their production due to rising energy costs as a result of the ongoing conflict between Russia and Ukraine. For the same reason, upstream companies were also maintaining average production rates. However, despite the fact that demand for this commodity remained moderate in December, there was a shortage on the market as upstream productions continued to be modest, which allowed the price of this product to rise. The market for n-Hexane in the Netherlands and Germany both moved in the same direction.
For the Quarter Ending September 2022
North America
Similar to the European and Asian markets, the markets of n-Hexane in North America, too got impacted by the events that occurred in the crude oil market. n-Hexane witnessed a downfall in costs in the U.S. this quarter. The demand for this product was found to be average from downstream companies, as the supply of n-Hexane was limited because of force majeure. So, furniture companies opted to use cyclohexane for their production purposes instead of using this product. Hence, n-Hexane closed its market in the U.S. this quarter at USD 1,688 per MT.
APAC
The market of n-Hexane witnessed a downfall in the whole of the Asia-Pacific region this quarter. In China, the n-Hexane price got stepped down due to several factors. In the initial days of this quarter, the reduction in upstream crude oil prices because of the recession that happened in the Asian crude oil markets and the enforcement of lockdowns by provincial governments was the key reason for a price reduction. However, from mid-August, the price got lowered as industries involved in n-Hexane production and textile, furniture, and footwear companies that use n-Hexane for their manufacturing activities had to completely halt or drastically lower their production rates because of acute power shortages. Hence, n-Hexane closed its market in China this quarter at USD 1,375 per MT on FOB – Qingdao basis. When it comes to India, n-Hexane’s market was identical to that of China in this quarter. The prices of this product were influenced by the reduced crude oil prices and moderate demand for n-Hexane from downstream companies.
Europe
In this quarter, European n-Hexane markets were like that of Asian markets. In Germany, this product began its market with a growth in the initial month, and from the next month till the end of this quarter, the cost of this product was constantly declining. As the supply of natural gas and crude oil was tightened because of the enduring war between Ukraine and Russia, which significantly enhanced the production and energy costs, downstream companies were very much concerned, and they showed modest interest in this product. So, at the end of this quarter in Germany, n-Hexane’s cost stood at USD 1,710 per MT on FD – Hamburg basis. Netherlands’ n-Hexane market followed a similar trajectory to that of Germany. The factors which had influenced the price of this product in Germany were the same behind the downfall of this product’s cost in the Netherlands as well in this quarter.
For the Quarter Ending June 2022
North America
The prices of n-Hexane surged in the North American market during the second quarter of 2022, with an escalation in the prices of upstream feedstock crude oil varying due to the ongoing war between Russia and Ukraine. The inventory pressure was low, and fewer products were stockpiled with the traders and the suppliers in the regional market. Rising freight charges globally and congestion in various ports caused a shortage of products. Disrupted supply chain values were also observed, affecting the market sentiments. The demand from the downstream market also surged in the region; thus, traders increased their prices.
Asia
The prices of n-Hexane surged in the Asian market during the second quarter of 2022 with a quarterly escalation of 7.5% in India, as recorded by Chem Analyst pricing team data. There has been a spike in crude oil prices, and demand has remained strong. In the short term, the supply tightening challenges are expected to ease. In the short term, oil prices were boosted by low inventories and expectations of tightening supply and ran at a high level under the influence of the EU's anticipation of implementing the Russian oil ban bill. In the medium and long term, oil prices sought to rebalance supply and demand in the context of the Fed raising interest rates and increasing demand uncertainty.
Europe
The price trend of n-Hexane surged in the European market during the Q2 of 2022, with a quarterly escalation of 6.2% in Germany, as recorded by Chem Analyst pricing team data. A surge in demand for the product from the downstream glues, varnishes, and inks sectors supported the upward price trend of the product in the region. The inventories were observed to be decreasing, and fewer products were stockpiled. Additionally, favorable supply and demand led to a slight increase in liquefied gas prices in many European places due to the maintenance of liquid plants. The prices of upstream feedstock Crude Oil varied due to the ongoing war between Russia and Ukraine supporting the price trend.
For the Quarter Ending March 2022
North America
In the first quarter of 2022, the n-Hexane market experienced an upward pricing trajectory in the North American region. Consistent upward crawl in upstream crude oil prices supported this uphill curve during the first quarter. A constant surge in the prices of n-Hexane was seen in the US owing to the constraint availability and firm demand pattern from the downstream solvent industry in the overseas market. The inflation in the pricing trend of n-Hexane was additionally backed by high-end demand from textile industries which caused the prices to reach USD 1734/MT FOB during March in the USA.
Asia Pacific
n-Hexane prices climbed up in Asia Pacific during the first quarter of 2022. The hike was observed owing to increased demand for the solvent in textiles manufacturing and for the extraction of oils. Besides higher upstream crude oil prices in mid-March and scarcity of supplies in the region due to Russia's invasion of Ukraine significantly influenced manufacturing rates and operating costs. Besides, the crisis in Ukraine severely hampered supply networks across the global market, which led to the rise in prices of n-Hexane in India. n-Hexane prices were estimated at USD 1580/MT in March 2022.
Europe
In continuation to the last quarter of 2021, n-Hexane showcased positive market sentiments in the European region through the first quarter of 2022. Solvent prices rallied as the regional market recovered with improved demand in other European countries. Persistent shortage in supplies and increase in the demand across the oil extraction industry resulted in high price of n-Hexane in the region. Furthermore, increased freight charges due to container shortage disrupted supply chains which resulted in firm prices which were assessed at around USD 2158/MT towards the end of Q1 2022.
For the Quarter Ending December 2021
North America
Due to consistent demand from domestic as well as from international market, n-Hexane price kept on oscillating in a narrow range throughout Q4 2021. Demand fundamentals for solvents across US market remained modest to dull during this timeframe. However, being highly versatile and widely used solvent, n-Hexane performed better than other commodities. Industrial intermediate and pharma remained major downstream driving sectors during this timeframe in USA, while most of the exports demand was also driven by these segments. During December, n-Hexane price assessed around USD 870/MT in USA. However, only marginal fluctuations were observed throughout the quarter i.e., USD 50-60/MT.
Asia
Asian market kept on oscillating throughout the quarter on the back of frequently changing market dynamics. In China, sudden surge in coal prices shot up the price of several commodities during October, which later showcased some ease by the end of December. Meanwhile in India, after witnessing astonishing height, n-Hexane prices started gaining stability during December in Indian market. Traders revealed that, during festive season in India, base price of several solvents rose up abruptly on the back of high demand from the domestic market. However, for December month, feeble offtakes and ample inventories level pulled down the price across domestic market, while major manufacturers heard ready to negotiate on their old cargoes. Prices heard hovering around USD 1000/MT during December in India.
Europe
n-Hexane price remained buoyant throughout Q4 2021 on the back of firm offtakes from the domestic market. However, overall buoyancy was induced after witnessing sudden surge in natural gas cost, which later eased in the domestic market. Furthermore, demand fundamentals across Germany and UK remained firm, as pandemic related uncertainties remained less dominant than Q3 2021. Conclusively, post witnessing consistent hikes during October and November, prices marginally declined during December across Europe, which later projected to show uptrend in January 2022.
For the Quarter Ending September 2021
North America
In the third quarter of 2021, n-Hexane market in North America experienced an upward rally supported by the robust demand from the downstream pharmaceuticals and rubber industries and the limited supply. In USA, the production rates were significantly reduced due to the arrival of Ida hurricane that made landfall in the gulf coast of the US at the end of August. Industries remained closed as a part of contingency plan for approximately two weeks that shot up the prices of n-Hexane in this timeframe.
Asia Pacific
In Asia pacific region, n-Hexane market showcased mixed sentiments during the third quarter of 2021. At the beginning of the quarter, key manufacturers ramped up their production rates after the resurgence in the industrial activities that led to the ample availability of stock and a decline in the price of n-Hexane. However, in the latter half, an upsurge in the values of n-Hexane was observed due to several factors such as congestion on several ports of China that caused supply chain disruption. In India, after witnessing a steep decline due to sufficient supplies under stable offtakes from the domestic market, n-Hexane prices showcased a sharp rebound in September. Several solvents in Indian market gone through a price revision, as the demand from the domestic market changed under the market optimism. Hence, Ex Kandla n-Hexane prices dropped to USD 961.49 per MT from USD 963.93 per MT from July to August. However, in September, Ex Kandla n- Heptane prices stood at USD 1048 per MT witnessed a significant hike since July.
Europe
n-Hexane market experienced an upward trend in the European region during the third quarter of 2021. The price of n-Hexane rose significantly owing to the delayed supplies from Asian countries followed by the congestion on several ports of China and constraint availability of shipping containers. Moreover, the demand remained firm from the end use industries including rubber and Pharmaceuticals. Furthermore, volatile crude oil prices also influenced the prices of n-Hexane and hence, in Europe n-Hexane prices kept on surging throughout the quarter.
For the Quarter Ending June 2021
North America
The resumed industrial activities in the US Gulf Coast, improved the market outlook during the second quarter of 2021. As a repercussion the supplies in the n-Hexane observes a drastic surge and improved compared to the previous quarter, however some hinderance was observed as the colonial pipeline was shut for a week due to the cyber-attack in the second quarter. Amidst the recovered supply chains and increased industrial activities, the demand supply gap narrowed which further eased the prices in the regional market. Demand was deemed good following continuous offtakes from the rubber and pharmaceutical industries.
Asia Pacific
During the second quarter of 2021, market activities were subdued in the Asia Pacific region due to unprecedented rise in COVID cases in several Southeast Asian countries. The second COVID wave in India restricted the public movement and amidst the hovering uncertainties buyers were reluctant to procure in bulk. However, the situation improved in the second half following the ease in restrictions which led to improved market activities, therefore the offers of n-Hexane were raised in June with Ex-Work Kandla prices reaching USD 805 per tonne. In China, imports of the brent crude surged which proportionally improved the availability of the n-Hexane in the Chinese market.
Europe
n-Heptane market in the European region showcased mixed trends during the second quarter. Availability in the first half of Q2 remained constraint owing to the low production levels at several manufacturing facilities along with the delayed exports to the Asian buyers. The condition improved in the second half, as the supply chain was restored with better output and export of crude oil. Demand remained continuous from downstream rubber and pharmaceutical sector. Thus, prices in the European region remained stable to firm in the second quarter of 2021.
For the Quarter Ending March 2021
North America
The North American n-Hexane market was severely impacted as the extreme freeze weather conditions in Texas and US Gulf coast area took a toll over almost all the regional crackers which were shut starting mid-February. Surging Crude rates proportionally impacted the prices of almost all grades of n-Hexane in the region. ExxonMobil announced positive price revision for almost all grades of n-Hexane by USD 110/MT for its March deliveries. The demand surged from the export segments, followed by improved offtakes from the downstream industrial solvent sector.
Asia-Pacific
n-Hexane supplies were short in the APAC region during Q1 2021, amidst major refiners responding to Saudi Aramco’s output cut in crude oil extraction which hiked the prices of almost all petrochemical products early in the quarter. Prices of n-Hexane in China market in March were assessed at USD 1505/MT FOB Shanghai. Producing plants in the region were operating at full swing to coverup the rising enquiries from the western region which significantly improved the margins. Several buyers were heard piling up their inventories ahead of the Chinese lunar year holidays starting Feb. 12, followed by better prospect for the refinery solvents.
Europe
The supplies of n-Hexane in the region were constrained, owing to low refinery operating rates reported due to severe freeze weather and transportation lag in the northwest Europe. A sharp fall in the imported volumes was reported as the US shipments declined amid bad weather conditions with the situation further exacerbated by escalating shipment cost and Suez Canal blockage hindered the Asian supplies. On the basis of feedstock price movements, the European producers adjusted their prices to new hikes in early March.
For the Quarter Ending December 2020
North America
High volatility in the international crude oil market continued to hamper the n-Hexane price curve with the uniform demand growth observed in the downstream sectors. Prices revived towards the end of the quarter with immense utilization reported in the industrial solvent applications. The demand for food grade Hexane surged due to better offtakes for edible oil extraction. Eventual restart of some upstream crackers in December lifted the production volumes.
Asia
Steady hike in the prices of upstream crude oil backed by low product availability across Southeast Asia provided a striking upward push to the prices of N-hexane in Q4. In some southeast Asian countries, such as Malaysia and the Philippines, prolonged national lockdowns however, further dampened possible signs of demand recovery and added to the growing inventory pressure. Price of n-Hexane remained in the substantial to firm range in the first half of the quarter due to year-end restocking activities observed in China and Taiwan. Some plant turnarounds in the region indicated towards potential tightness in the supply in H1 2021.
Europe
Alleviating demand for n-Hexane from the pharmaceutical intermediates and industrial solvents pushed up the market sentiments in Europe. Several manufacturers were heard increasing their production rates in the first half of the quarter while its utilization grew in the pharmaceutical industry for forming pills and tablets. In early October, there was an upward push to the pricing curve of n- Hexane due to active restocking by end-user industries owing to levelled demand. Regional prices also rallied on the back of firmer crude oil due to production related constraints from the producing belts.
