European Hexene Prices Weaken in April After Having a Strong Performance in March
- 06-Apr-2022 4:37 PM
- Journalist: Robert Hume
Hexene prices have been termed as stable to weak in German market during the initial assessment as market participants reported of declined demand from downstream Polyethylene. Hexene prices in the European market remained firm throughout March owing to increased prices of imports reaching German shores. European continent has been mired in the firm grip of inflation as energy prices has been skyrocketing pressuring commodities market.
European Polyethylene market has been going through an upheaval as demand from packaging sector has been robust however PE producers have been left wanting with the increasing energy and feedstock prices. Increasing costs have culminated in production cuts and consequently demand for PE intermediates including Hexene which is widely used in production of Linear Low-Density Polyethylene (LLDPE) has dipped in the first week. Hexene prices in Germany has been assessed at USD 3385 per MT on CFR basis. Market participants have been vigilant of the current development in the PE market has been considering conservative (wait and see) approach in terms of procurements.
Declining production rates is expected to provide timely opportunity for US and Middle East Asian Polyethylene to reach European shores. USA and Saudi Arabia are key players having surplus PE production and can easily avail PE as PE prices are still firm in the European market. This is likely to further deter the production rates in Europe.
Meanwhile, in Middle East Asia, Hexene prices have fallen as the crude oil prices have declined sharply in last couple of weeks owing to demand stability and supply enhancement globally. SABIC, a key manufacturer of Hexene in the region, have reported drop in prices as feedstock costs have deteriorated.
As per ChemAnalyst, “Hexene prices have been declining and may continue to dip further in coming weeks as demand fundamentals are expected to remain weak in the short term. Supply fundamentals are expected to strengthen as both European and Middle East Asian Hexene production is likely to remain stable to firm availing ample material in the market.”