In the first half of August 2025, n-hexane prices were under pressure across Asia and Europe from weak feedstock cost from naphtha, high availability as a result of persistent oversupply, and tepid demand from downstream industries, especially in construction-related activities and edible oil extraction.
In China, n-hexane prices kept falling as supply remained high and demand stayed weak. The edible oil extraction industry was in its usual off-season, and the construction sector was affected by hot weather and heavy rains, which slowed down paint and coating use.
Producers and distributors held large inventories, showing that buyers were cautious. Naphtha prices stayed soft because crude oil values were low, especially with Russian crude flooding the market. This made production cheaper and added more pressure on n-hexane prices.
Grain and edible oil markets were quiet, with wholesale prices for oils and grains dropping 0.62% month-on-month. This meant less buying from the vegetable oil extraction industry, which is one of the main users of n-hexane.
In China, n-hexane prices were on the decline as the oversupply situation lingered, and downstream demand continued to be lackluster. The edible oil extraction industry remained under its seasonal lull, while the construction-related consumption in the paint and coatings sector was also low due to slowdown in that segment as well as disruption due to weather conditions.
In South Korea, the construction sector recorded its third consecutive monthly decline. New orders slowed, funding constraints tightened, and civil engineering activity weakened, curbing demand for n-hexane in coatings and adhesives.
Official data released on August 1 showed petrochemical shipments fell 10.1% year-on-year, weighed down by weak oil prices and a global supply glut. Manufacturing activity declined, driven by downturns in autos and construction, alongside soft foreign demand.
In India, monsoon season disrupted construction projects. This led to reduced n-hexane demand for coatings and adhesives, with buyers opting for small, on-demand purchases.
Dow’s Q2 2025 construction-related sales in EMEAI, including India, fell mid-single digits year-over-year, with volumes slipping 2–3% sequentially. The decline reflected weak housing activity and cautious procurement across infrastructure segments.
In Europe, market activity slowed as summer holidays and shutdowns reduced operations. Construction and oil extraction sectors posted muted orders, limiting n-hexane consumption.
New construction orders declined across housing, commercial, and civil engineering projects. Edible oil extraction remained in its off-season, with high temperatures and soft grain markets further restricting procurement in the n-hexane market.
Export interest stayed weak amid global demand headwinds and U.S. tariffs on European chemicals, which continued to erode competitiveness and limit overseas sales.
According to ChemAnalyst, n-hexane prices are expected to decline or remain stable low in the coming weeks, driven by subdued downstream demand from the construction and edible oil sectors across Asia. In Europe, seasonal summer holidays and reduced industrial activity, coupled with U.S. tariffs on European chemicals, are likely to further suppress pricing momentum.
