For the Quarter Ending December 2022
North America
Overall, the Hexene market in the North American region has observed a consistent bearish outlook throughout the fourth quarter of 2022. The Hexene market has been consistently influenced by the reduced cost support from the feedstock, and the weakening values of the Crude have a significant impact across the values chain. In addition, the demand from the downstream has remained inadequate to uplift manufacturers' sentiments to increase the offers for Hexene in the domestic market. However, the offers in the first half of the quarter have offered quoted for Hexene have remained fluctuating within a rangebound depending on the demand outlook from the overseas market. However, in the latter half, the discussion for inquiries from the PE industries has further plunged, weakening the enthusiasm amongst the market players despite the embargo of the EU over Russian energy supplies. As a ripple effect, the FOB Texas discussions for Hexene were assessed at USD 2478 per tonne in December 2022.
Asia Pacific
The Hexene outlook in the Asia Pacific region has remained on a bearish trajectory throughout the fourth quarter of 2022. This setback is majorly attributed to the increased market competition across the region. The consistent imports of Russian Crude Oil at cheaper rates have provided an advantage to the prominent exporting nations over the price competitiveness. At the same time, the far east Asian player has started the destocking drive to complete the sales target and improve the enterprise's financial outlook ahead of the year's end, leading to a wider window for negotiation from the downstream players. In contradiction, the downstream players in the far-east Asian markets have also restricted the cash outflow resulting in a curtailment of overall demand. As a ripple effect, the Asian Hexene players are keen to participate in other regions leading to intense price competitiveness amongst the market players. The FOB Busan discussion for Hexene was assessed at USD 1345 per tonne in December 2022.
Europe
In the fourth quarter of 2022, the Hexene market in the European region has observed a consistent bearish outlook and a considerable drop in offers throughout the period. As per the market experts, the European market currently lacks market competitiveness. The constantly soaring inflation and hiked interest rates have increased the cost of living amongst end-use consumers leading to a strict conservative buying streak. Even though the operating rates at the facilities remained dull and the embargo on the Russian energy supplies has been negated by the participation of the Asian players with high price competitiveness margins. As a ripple effect, the CFR Hamburg discussion for Hexene was assessed at USD 2248 per tonne in December 2022.
For the Quarter Ending September 2022
North America
In the third quarter of 2022, the Hexerne market in the North American region witnessed mixed sentiments that varied monthly. As per the market experts, the consistent fluctuation in the values of upstream Crude Oil in the international market coupled with the unstable demand pattern from the downstream solvent industry. At the same time, the slower inquiries for Polyolefins manufacturers have further dampened the will of the producers to ease out the quotations for Hexene in the domestic market. In addition, the queries from the overseas markets, especially from the European region, remained restricted due to the holidays. However, the offers rebounded after the market reopened further, coupled with restocking practices to avoid supply chain hindrance caused by the hurricane season in North America. The FOB Texas discussion for Hexene settled USD 3330 per tonne during the quarter ending September 2022.
Asia Pacific
Overall the sentiment for Hexene in the Asia Pacific region was mixed that varied based on the economic conditions of the countries. The weaker performance of the major economy like China in the Northeast Asian region due to the zero COVID policies, further coupled with the power rationing, has impacted the manufacturing sector. The latest figures released by the Chinese authorities showcased that the manufacturing PMI index has slipped below 50. At the same time, the demand from the downstream polyolefins industry remained buoyed. Therefore the 1-Hexene discussions on CFR Nanjiang basis assessed USD 1690 per tonne during the quarter ending September 2022.
Europe
In the third quarter of 2022, the Hexene market in the European region remained silent, and the discussions on CFR Hamburg were assessed at USD 2650 per tonne during the quarter ending September 2022. The market sentiments remained muted for a considerable duration due to the summer holidays across the Northwest European region. In addition, the demand for polyolefins remains bearish has further dampened the will of the domestic and overseas players regarding the arbitrage for Hexene. Meanwhile, European supply chains remained under pressure throughout the third quarter as port congestions and port labor strikes curtailed normal port operations.
For the Quarter Ending June 2022
North America
During the second quarter of 2022, Hexene prices in the United States rose during the first half on the back of the soaring cost of production due to strong energy and feedstock prices along with high logistics costs. Olefins prices increased sharply during the initial month of April 2022; however, pricing sentiment shifted the balance towards the second half of the quarter, where downstream Polyethylene demand weakened, which prompted the market participants to ease the demand pressure from upstream, meanwhile feedstock ethylene prices declined after months of the resurgence in May and June 2022. Energy prices remained higher throughout the quarter; however, ample olefin inventories ensured no further price increase in olefins.
APAC
Middle East Asia has been a key region of exports of Hexene to the Asia Pacific region, including all major countries in South Asia and Southeast Asia. After an initial increase in Hexene prices during April, rising feedstock costs and a shortage of inventories lead to a sharp price increase. However, prices stabilized towards the 2nd half of the quarter as prices declined significantly, inventory levels improved, demand from polymers eased, and feedstock olefins costs slumped. China and India import hefty quantities of Hexene from Saudi Arabia, and the market trend in South Asia mirrored the market trend of Saudi Arabia. China continued its battle with Covid leading to demand deterioration, while India maintained stability in volume intakes.
Europe
European countries have also followed a similar trend where demand plunge in polymers during the second half of the quarter prompted the market participants to revise the prices towards the weaker side. While, during the initial stages of the 2nd quarter of 2022, Hexene prices rose substantially as Europe was caught in the crossfire between Russia and Ukraine. Feedstock costs remained unchecked as the inflation rate soared during April and logistic costs climbed as the uncertainty around the Ukrainian crisis left space for price moderation. Hence, 1-Hexene prices increased in the first half in Germany and France by 5%, and later prices stabilized and fell by 4-5%.
Hexene market was firm during the first quarter of 2022 owing to strong cost pressure from crude oil prices and robust demand from downstream Polymers and other industries. Market dynamics were tighter as the global demand for crude oil was outpacing the available supply. In addition, the Ukraine-Russia conflict further exacerbated the demand-supply dynamics of crude oil. Both Brent and WTI prices remained strong in the global market and consequently, inflationary over Hexene compounded while demand for the material rebounded in H2 of Q1 2022. Chevron Phillips has reported normalcy in production with limited to no production disruptions during the quarter. The company has also signified the consistent rise in crude oil may not show any short-term drawbacks however midterm to long term implications could be dire having global ramifications. Demand from polymer segment has increased and, as of March 2022, Hexene prices were assessed at USD 3595 per MT on FOB basis.
Middle East region, key producer of Hexene in Asia, has observed strong Q1 2022 where Hexene prices skyrocketed in the backdrop of rising prices of crude oil and its derivatives. Hexene prices were assessed in excess of USD 3300 per MT on FOB basis owing to strong demand sentiment and increased prices of crude oil. SABIC, only producer in the middle east Asia region, has increased prices amid rising demand from downstream plasticizers and growing international consumption. Middle East Asia cater to South Asian demand of Hexene and consequently, India and China have witnessed strong pricing sentiment during the quarter. China also has domestic production and uptrend in the prices has also been observed in the domestic market and prices were assessed at USD 3140 per MT on FOB basis after conclusion of Q1 2022.
During the first quarter, prices of Hexene remained firm on the back of strong cost pressure and robust demand from downstream Polyolefins. Crude oil prices started the year on a firm note as prices were assessed in USD 80-90/b range however the Russian invasion of Ukraine exacerbated market dynamics and crude oil prices went haywire. Consequently, downstream Naphtha prices broke charts in Q1 pressuring downstream derivatives including Hexene. Imports of LNG become strained as trade in Black Sea region got hampered while relationship between the West and Russia reached its lowest point in decades. Limited availability of LNG increased inflationary pressure and subsequently production cost increased substantially. Hence, after conclusion of Q1 2022, Hexene prices were assessed at USD 3940 per MT on FOB basis.
