For the Quarter Ending March 2025
North America
During Q1 2025, the U.S. non-polar solvents market experienced a broadly bearish trend, with most key products showing price declines amid fluctuating upstream costs, subdued downstream demand, and macroeconomic uncertainties. O-xylene prices dropped by 8.01%, influenced by weak sentiment and elevated inventories despite initial cost-push pressures.
Isopentane saw a 4.15% decline as crude oil volatility and tepid demand from the EPS sector outweighed early gains. Benzene fell 2.11%, driven by inconsistent demand from polymers and aromatics along with falling feedstock prices. Toluene registered a 1.91% decrease as weak crude oil support, soft demand from TDI and coatings, and trade uncertainties pressured prices. Hexene also slipped by 1.97%, despite a strong start, due to oversupply and cautious buying in March.
Chloroform showed relative resilience, dipping only 0.16%, supported by stable demand from pharmaceuticals. Tetrahydrofuran (THF) declined by 3.32%, reflecting low demand from PTMEG and spandex, with minor support from stable feedstock supply. Cyclohexanone was the exception, rising 0.91% due to strong nylon sector demand early in the quarter, though prices eased by March. Carbon Disulphide declined 6.58%, despite stable supply and agrochemical demand, impacted by weakness in textiles and industrial activity.
Overall, the quarter highlighted a challenging environment for non-polar solvents, marked by price softness and sector-specific demand pressures.
Europe
In Q1 2025, non-polar solvents in the European market displayed a predominantly downward price trend, with the exception of o-xylene, which recorded a 1.38% increase due to firm downstream demand and rising feedstock costs. Isopentane prices fell by 2.22%, pressured by weak demand from the EPS sector and fluctuating supply conditions. Benzene experienced a slight decline of 0.08%, affected by volatile feedstock prices and weak downstream polymer demand. Toluene prices dropped by 0.43% amid sluggish industrial activity and inconsistent market fundamentals. Hexene saw a sharper decline of 3.81%, primarily driven by poor construction sector demand and oversupply conditions. The chloroform market was relatively stable but still registered a 0.64% decrease due to falling methanol prices and limited growth in agrochemical demand. Tetrahydrofuran prices declined by 2.60%, influenced by weak demand in the spandex and polymer solvent sectors alongside lower production costs. Cyclohexanone saw a significant price reduction of 7.88%, driven by falling benzene prices and declining demand from the caprolactam sector. Carbon disulphide experienced the steepest drop at 8.42%, reflecting subdued industrial activity and oversupplied market conditions despite a modest late-quarter recovery in demand.
APAC
In Q1 2025, the non-polar solvents market in the APAC region presented a varied performance. Ortho-xylene registered a 7.75% increase, supported by consistent demand from the phthalic anhydride sector and regional supply tightness, although the market corrected slightly towards the end of the quarter. In contrast, isopentane saw a marginal decline of 0.09%, reflecting muted demand from the EPS sector and steady domestic supply. Benzene and toluene both experienced declines, with prices dropping by 5.32% and 4.24% respectively, driven by weak downstream demand, falling crude oil and naphtha prices, and persistent macroeconomic challenges. Hexene prices rose by 1.42% over the quarter, with gains in February due to stronger demand from the packaging sector, although the market softened again in March due to oversupply. Chloroform maintained relative stability, ending Q1 with a modest 0.78% gain, bolstered by consistent pharmaceutical and agrochemical demand. Tetrahydrofuran prices declined by 5.37% due to sluggish demand from spandex and PTMEG sectors, though the market stabilized later in the quarter. Cyclohexanone saw a 2.50% increase, despite weak textile and coatings demand, helped by steady supply and localized procurement activity. Carbon disulphide experienced the sharpest drop of 11.91%, influenced by weak domestic demand and volatile energy costs, despite stable production and strong exports.
For the Quarter Ending December 2024
North America
The United States non-polar solvents market in Q4 2024 experienced significant price volatility, characterized by substantial declines across multiple key compounds. Benzene emerged as the most dramatically impacted, with a sharp 16% price reduction Q-o-Q that reflected broader challenges in petrochemical and manufacturing dynamics. Isopentane followed closely, declining by 14.11% and signaling widespread market pressures across solvent categories. The market's downward trajectory was primarily driven by reduced manufacturing activity, strategic inventory optimization, and softening demand from critical industries including pharmaceutical, chemical processing, and specialty manufacturing sectors.
Toluene demonstrated a 9% price decrease on a quarterly basis, while Cyclohexane showed a more moderate contraction of 4.5%. Tetrahydrofuran and Chloroform exhibited relative stability, each declining by 3% Q-o-Q, which suggested underlying resilience in specific market segments. These pricing movements were underpinned by complex interactions between supply chain dynamics, industrial demand fluctuations, and strategic corporate responses to economic uncertainties. Pharmaceutical research laboratories, chemical manufacturers, and associated industries implemented cautious procurement strategies, further contributing to the market's subdued performance.
Asia Pacific
The Chinese non-polar solvents market in Q4 2024 distinguished itself through more extreme price variations and substantial market disruptions. Cyclohexane represented the most dramatic market movement, experiencing a unprecedented 20% price decline that highlighted the profound challenges facing the sector. This significant contraction was directly influenced by geopolitical tensions, particularly surrounding potential US tariff announcements, aggressive inventory destocking strategies, and reduced export demand from Western markets. The complex interplay of currency fluctuations and anticipated policy changes created an environment of considerable market uncertainty.
Chloroform recorded an equally notable price reduction of 15.21% on a quarterly basis, while Benzene and Toluene decreased by 7.76% and 7% respectively. The relatively minimal decline of N-Heptane at 0.71% indicated nuanced market segmentation and varied resilience across different solvent categories. Market challenges stemmed from cautious buyer behaviour, anticipated administrative policy shifts, persistent supply chain recalibrations, and reduced manufacturing output. These factors collectively contributed to a market characterized by strategic repositioning and conservative approach to inventory management and pricing strategies.
Germany
The European non-polar solvents market, particularly in Germany, presented a uniquely complex pricing landscape during Q4 2024, distinguished by significant declines interspersed with selective positive movements. Styrene experienced the most dramatic price contraction at 22%, reflecting broader industrial restructuring efforts and strategic market adjustments. This substantial decline was contextualized within a broader market environment marked by seasonal demand fluctuations, holiday-related logistics disruptions, and intricate regulatory considerations.
Benzene declined by 16%, while Cyclohexane and Tetrahydrofuran contracted by 14% and 13% respectively, demonstrating widespread market pressures. Notably, the market exhibited distinctive characteristics through the positive price momentum of Chloroform and Carbon Disulphide, which increased by 1.9% and 1.6% respectively. These nuanced pricing trends reflected a more sophisticated approach to market management, characterized by targeted industrial demand preservation, complex regulatory navigation, and strategic positioning in anticipation of potential economic shifts. The European market's response highlighted its ability to maintain selective resilience amidst broader market challenges.
