n-Hexane Experiences Growth in Prices in China This Quarter
- 20-Dec-2022 6:14 PM
- Journalist: Rene Swann
This quarter, n-Hexane sales in China is increasing significantly. There are a number of reasons for this rise, including resumption in production across the nation, an increase in demand for this product from downstream businesses, etc.
Due to power shortages and the implementation of the zero Covid strategy, several upstream companies involved in processing n-Hexane were forced to limit or reduce their production rates during the preceding quarter, which resulted in a very dull market for n-Hexane. Downstream companies that make textiles and furniture also had to reduce their manufacturing activities for the same reasons.
ChemAnalyst's observations indicate that n-Hexane prices in China are rising this quarter and have increased by almost 6.62% per MT till November 2022. This is excellent news for sectors because it allows businesses to continue investing in their products without worrying about rising raw material costs.
This rise in n-Hexane price comes at a time when many people started to worry about the chemical industry's health; Some feared that China would enact more stringent environmental laws that would hurt business profitability because of the focus on pollution. On the other hand, these worries have been allayed by the fact that no new laws or regulations have been enacted recently. Any updates on this front will be made available ahead of time so businesses can plan accordingly.
n-Hexane's limited supply as a result of moderate production activities is the cause of the price increase. The strict implementation of Covid -19 curbs again by various provincial governments is the reason for the average n-Hexane production volumes, and as on 16th November 2022, this product was being traded at USD 1,565 per MT on a FOB-Qingdao basis.
The firm anticipates the price of n-Hexane to continue growing till January 2023, as it expects textile and footwear companies, the key users of this product, to come up with more procurement orders for this product as well as due to the growth that it foresees in the prices of upstream crude oil.