Recovery in Manufacturing Sector Increases Hexene Prices in Germany
- 25-Apr-2023 4:05 PM
- Journalist: Rene Swann
The pricing trend of Hexene in the European markets upsurged in the past few weeks, and the overall prices saw an incline of 10-12%. While facing suppressed global demand outlook and uncertainties regarding financial conditions in February 2023, the market sentiments for Hexene started improving from March 2023 in the European region as the manufacturing sector reported improvement in production outputs and enhancement in supplier performance.
Previously, the prices were on a downward trajectory in the fourth quarter of 2022 due to uncertainties regarding the demand for Hexene in the German domestic market. Numerous Hexene producers, including BASF, lowered production to minimize the impact of gas shortages in the region. At the same time, downstream plastics and textile market offtakes were below average.
In the German domestic market, the prices of Hexene in March 2023 upsurged by 13.6% and settled at USD 2199 per tonne from USD 1935 per tonne in February 2023 amidst an increase in demand from the downstream polymer and plastics industries. As the production rates increased, the demand for the downstream HDPE and LLDPE upsurged in the packaging sector. Furthermore, the market prices of Polyethylene (PE), -a polymer manufactured by Hexene, rose in the domestic market, ensuring positive cost support.
The drop in manufacturing input costs also accelerated, owing to lower transportation costs, in addition to a softening in energy prices boosted the manufacturer’s confidence in the region.
The market fundamentals of Hexene improved in the Asian market simultaneously as the demand from the consumer market paced up in the textile, polymer, packaging, and other related industries, and the prices of Hexene soared considerably. Amidst rising market competitiveness, the overall market prices of Hexene upsurged substantially in the global markets.
According to the ChemAnalyst database, the offered quotes for Hexene in the European region will likely rise further in the upcoming weeks as the demand perspective is anticipated to remain sturdy, and active procurement rates from the end-use consumers are foreseen in the region.