N-Hexane prices remained stable in early June 2025 due to weak feedstock naphtha costs and sluggish demand from oil extraction and coatings sectors, with expectations of further price declines ahead.
N-Hexane prices remained stable across key Asian and European regions during early June 2025. Weak feedstock naphtha costs and sluggish demand from end-use sectors such as oil extraction and coatings kept markets subdued. With no recovery signals, prices are anticipated to come under downward pressure in the coming weeks.
In China, N-Hexane prices held steady amid flat upstream costs and low buying interest. Feedstock naphtha remained soft due to oversupplied crude markets, keeping production expenses minimal. Despite this, buyers avoided bulk purchases, citing slow consumption trends across downstream segments.
Downstream Oil extraction demand continued to lag as summer heat reduced oilseed arrivals, leading to a decline N-hexane demand in solvent usage. Crushing activities remained minimal, reflecting seasonal weakness. The high-temperature off-season significantly affected procurement levels in this segment.
The coatings sector also failed to gain momentum, weighed down by poor construction activity in the domestic market of China. Delays in infrastructure and real estate projects limited the need for solvents like N-Hexane. Buyers stuck to short-term orders, wary of market uncertainty.
China’s export momentum showed no signs of improvement. Extended Eid holidays in the Middle East and parts of Asia delayed transactions and weakened offshore interest. Port activity in Qingdao remained stable, but overall overseas orders stayed soft.
N-hexane Production in China ran without disruption, as plant operators kept output levels aligned with demand. N-hexane Inventory remained manageable, but sentiment stayed muted due to macroeconomic pressures and limited export opportunities.
In South Korea, N-Hexane demand stayed weak amid broader economic challenges. South Korea’s Q1 GDP shrank by 0.2% quarter-on-quarter, with declines in chemical production and machinery output affecting overall industrial performance.
Export activity in South Korea remained subdued, with chemical shipments falling 0.6% quarter-on-quarter. Seasonal weakness in oil extraction and a lack of recovery in coatings demand further dampened market activity.
In Europe, prices remained unchanged due to persistent softness in feedstock naphtha and downstream demand. Construction activity across Germany and the Eurozone stayed sluggish, keeping coatings-sector consumption of N-Hexane subdued.
Buyers in Europe favored spot purchases over forward deals amid pricing uncertainty. Hamburg port congestion disrupted shipments and increased domestic stockpiles, weighing further on trading interest and production planning.
As per the ChemAnalyst, with little support from end-user industries and ongoing weak feedstock dynamics, N-Hexane prices are expected to edge lower in the coming weeks. High summer temperatures and seasonally weak oilseed and construction activity continue to restrict overall market participation.
