N-Heptane prices in Asia weakened in mid-July 2025, driven by low demand in the downstream and soft naphtha feedstock costs. Excess Supply and cautious buying kept the market sentiments bearish. Confidence remained low across the region.
In China, N-Heptane supply exceeded demand as downstream procurement slowed and overseas interest weakened, causing inventories to rise. Naphtha costs remained soft, tied to stable crude benchmarks and upstream availability. Port congestion at Qingdao, worsened by fog, delayed exports and led producers to issue softer offers to manage mounting stock levels.
Replenishment enthusiasm fell sharply, with inquiries scarce as paints, adhesives, and oil extraction sectors operated at reduced rates. Seasonal off-peak conditions and weak construction activity further weighed on intake. Sellers maintained competitive offers, with most transactions restricted to spot needs, as buyers avoided forward commitments amid persistent uncertainty.
The market mood worsened as inventories grew. Producers cut operating rates to match low demand, but oversupply and weak overseas orders kept the market soft.
Declining second-hand housing prices across major cities added to caution. With high stocks, logistical delays, and low downstream activity, China’s N-Heptane market remained fragile, with buyers and sellers reluctant to commit beyond immediate needs.
In South Korea, N-Heptane demand stagnated as seasonal lulls in oil extraction limited solvent usage. Coating and adhesives consumption weakened as construction faced declining project starts and swelling unsold housing inventories. Distributors restricted replenishment, relying on essential volumes, further deepening bearish sentiment across South Korea’s N-Heptane market.
Corporate confidence deteriorated as U.S. tariffs and weak export flows suppressed construction-driven chemical consumption. ASEAN markets offered no support, with monsoon disruptions curbing intake. N-Heptane spot transactions stayed minimal as buyers avoided stockpiling, leaving sentiment subdued and the South Korean market entrenched in a distinctly bearish phase during the period.
In India, heavy monsoon rains stopped construction, delaying projects and reducing demand for paints, coatings, and adhesives. Off-season oil extraction worsened the slowdown, keeping N-Heptane use flat. Traders lowered prices, but transactions stayed small, with buyers avoiding future deals due to uncertainty.
Landslides and logistical delays further slowed demand in key regions. Downstream industries avoided building stocks, inquiries dropped, and the market stayed weak. Ample local and imported supply failed to spark demand, keeping India’s N-Heptane market subdued.
ChemAnalyst expects N-Heptane prices in Asia to keep falling. Off-season demand, monsoon disruptions, and typhoon risks will likely weigh on construction, while high inventories and cautious buying maintain weak interest, prolonging the bearish market tone in the coming weeks.
