n-Heptane Prices Witness Growth in China This Quarter
- 01-Dec-2022 11:51 AM
- Journalist: Nicholas Seifield
The market for n-Heptane in China is showing strong growth this quarter. This increase is due to several factors, including increased demand for octane-boosting agents, higher global crude oil prices, and an overall increase in automobile sales across the country.
n-Heptane is primarily used as an ingredient in paint thinners, but it also has other uses, such as being used as an industrial solvent or as part of brake fluid formulations. The largest consumer market for the n-Heptane product is the automotive industry, and the uptick in demand is pushing prices up, and more businesses are opting for this highly efficient product over traditional alternatives like butane or propane.
According to the observations by ChemAnalyst, n-Heptane prices are growing in China this quarter and have grown by almost 6% till now. This is great news for the industry, as it means that companies can continue to invest in their products without worrying about price increases from their raw materials.
This increase comes at a time when many were beginning to worry about the health of the chemical industry; with so much focus on pollution, some were afraid that China would enact stricter environmental laws that would hurt business profitability. However, these fears have been allayed by the fact that no new laws or regulations have been passed recently, and any updates on this front will be available in advance so that companies can plan accordingly.
The price increase can be attributed to the tight supply of n-Heptane, which is caused by moderate production activities. These average production numbers of n-Heptane are due to the strict implementation of the zero-Covid strategy by various provincial governments.
While manufacturers were initially concerned about price fluctuations due to sanctions placed on China by the United States government, those worries have been alleviated by increased trade between these two countries, with American businesses seeking out n-Heptane as well as Chinese suppliers looking to sell this product at higher prices than they would be able to get domestically.
As on 25th November 2022, the cost of n-Heptane in China stood at USD 1,800 per MT on a FOB-Qingdao basis.