During mid-November 2025, n-hexane prices remained stable at low level in the Asian market, even as monthly pressure persisted due to weak feedstock naphtha, sluggish downstream demand, and rising inventories. Oversupply, soft crude oil sentiment, and limited new orders continued to weigh on the market.
In China, n-hexane fundamentals remained weak as oversupply and subdued downstream requirements dominated market sentiment. Domestic plants continued operating at steady rates, but demand lagged behind production levels, contributing to rising inventories across key trading hubs.
Feedstock naphtha prices remained under strong pressure, declined 6% in October 2025, driven by weak upstream crude oil. The downturn in crude stemmed from rising global output and slow demand growth, reducing overall cost support for n-hexane producers and widening the price decline on a monthly basis.
Crude oil sentiment deteriorated further as the global market moved toward a supply glut. OPEC+ raised output by almost 3% since April, while U.S. crude production hit a record 13.65 million bpd, pushing inventories up by 5.2 million barrels in recent week. These dynamics filtered down into naphtha and ultimately n-hexane production economics.
China also grappled with logistical bottlenecks as congestion at Qingdao worsened. Vessel’s waiting times increased, slowing export shipments and contributing to inventory accumulation. With export orders being largely flat, producers found little relief from overseas markets.
Demand from China’s downstream sectors stayed weak. High inventories in oil extraction slowed solvent consumption, while paint, coating, and plastics manufacturers placed only minimal replenishment orders. Construction activity contracted to 49.1%, down 0.2 points, highlighting persistent caution across the building sector and further weighing on n-hexane demand.
In South Korea, n-hexane demand registered mixed signals across industries. Painting, coating, and plastics sectors remained subdued due to stagnant construction conditions and rising financial burdens on developers, which continued to affect new project initiation.
South Korea’s construction sector saw further strain as both public and private segments slowed. However, the edible oil extraction sector maintained steady consumption, and pharmaceutical demand remained robust, offering some support and preventing deeper declines in overall n-hexane use.
India recorded improving demand momentum as downstream paint, coating, and plastics sectors resumed procurement after Diwali. Seasonal recovery across industries helped restore market activity and supported n-hexane consumption entering the mid-November period.
India’s construction sector accelerated meaningfully in October, driven by government spending on housing and major infrastructure initiatives. The recent GST revision reducing taxes on input materials such as cement further boosted project affordability and stimulated fresh construction activity.
However, n-hexane demand from India’s edible oil sector remained low due to declining oilseed availability. Total acreage fell to 16.68 million hectares, down 0.38 million hectares, reducing processing volumes and restricting consumption from extraction units.
Looking ahead, n-hexane prices in Asia may find some seasonal support as construction activity picks up and downstream paint and coating industries increase consumption.
