n-Hexane is to Experience Growth in Cost in the Netherlands in the Forthcoming Months
- 16-Mar-2023 3:30 PM
- Journalist: Jai Sen
In the Netherlands, n-Hexane prices have remained constant for nearly a month. According to ChemAnalyst's analyses, this commodity cost approximately USD 1,600 per MT FOB-Rotterdam in the second week of March.
The market intelligence team at ChemAnalyst discovered that n-Hexane's persistent demand-to-supply ratio was the reason for the price stability. The supplies being carried out were of standard volumes due to the moderate demand for this commodity from companies in the downstream sector at this point.
n-Hexane is manufactured by refining crude oil and sold for use in furniture, footwear, and materials production. Pharmaceuticals and vegetable oil production also make use of it as a solvent. The Netherlands' n-Hexane market is dominated by the events that occur in the upstream crude oil market and on the basis of supply and demand for this commodity.
As a result, the demand for these other products largely determines how much n-Hexane is available on the market. In addition, n-Hexane's price and availability can be directly affected by changes in these markets.
Therefore, when there is a low demand for n-Hexane, producers are more likely to reduce production, which will probably lead to lower prices. On the other hand, when there is much demand, producers are more likely to raise prices and increase production.
It is likewise fundamental to consider that albeit the market for n-Hexane in the Netherlands is generally steady as of now, occasional or local impacts can, in any case, make costs change month to month.
On the other hand, the demand for n-Hexane by end-use industries is expected to rise in the coming months as they look to boost sales and improve production. It is anticipated that the rise in demand from the food and pharmaceutical industries will drive growth in the n-Hexane market. As a result, sellers and suppliers of this product are likely to raise their n-Hexane inventories and stockpiles to meet the increased demand.
In addition to this, growth in upstream crude oil prices is also predicted, which could have a significant impact on the cost of this product.
As per the analyses by ChemAnalyst, the price of n-Hexane is expected to rise by 3% per MT in the upcoming month and by a further 2% per MT in the month of May 2023.
