Hexene Prices Drop In USA, Feedstocks Maintain Weak Outlook
- 15-Jun-2022 3:48 PM
- Journalist: Patricia Jose Perez
As per the latest assessment by ChemAnalyst, the Hexene market has observed a bearish trend in the last couple of weeks owing to waning demand dynamics and easing feedstock prices and availability. Despite the fact that Natural gas prices are running riot in the North American region as Henry Hub Natural gas prices crossed USD 9/MMBTU in early June.
Ethylene prices have returned to pre-Covid levels as, according to the latest data, Ethylene contracts settled at a tad under USD 0.30/lb (at 29.75 cents/lb). A sustained decline in the feedstock market has encouraged manufacturers to change the direction of the pricing sentiments for downstream Hexene.
Meanwhile, demand in the domestic and international market has slowed down in the last month, further releasing the demand pressure from Linear Alpha olefins, including Hexene. Polyethylene has been a key consumption segment for Hexene demand, and a drop in market sentiment worldwide has further eased the pricing dynamics of the material.
Lockdowns in China have worsened the export demand for US resins, while strengthening supply chains has resulted in a bearish trend in the domestic market. In the spot market, railcar availability has increased while off-grade discounts steepened in the latest assessment. Hence, since the week ending May 2022, Hexene prices have declined by more than 4% on FOB basis till the 2nd week of June 2022.
As per ChemAnalyst, “Hexene prices are expected to remain sluggish in the coming weeks owing to ample supply availability and weak to stable demand dynamics. Feedstock Ethylene may show some gain in the short term as Motiva Chemicals has shut down their Port Arthur cracker, which may alter the market dynamics for Ethylene. Recently, Ethane prices have been at a multi-year high, breaching USD 0.68/gallon mark. Ethane is upstream of Ethylene. In the next quarter, hurricane season looms large, which may alter the market dynamics of upstream and downstream value chains of Hexene.”