For the Quarter Ending March 2024
North America
North American n-Heptane faced a bearish Q1 2024 with declining prices. Sluggish demand from key users like the industry, caused by seasonal slowdowns and broader economic woes, put downward pressure on prices. Additionally, subdued demand from China due to holidays and a weak construction sector further dampened the market.
The US market saw significant price drops in February, reflecting low seasonal demand and reduced production. With moderate to high supply exceeding low to moderate demand, the sentiment remained bearish. The construction lull further weakened demand. However, a glimmer of hope emerged at the quarter's end, with anticipation of increased activity and demand pushing prices slightly upward.
Overall, Q1 witnessed a notable price decline compared to the previous quarter. Limited activity and low consumption marked the first half, but optimism prevails for a second-half rebound. Despite the challenging start, the market anticipates a turnaround with improved activity and demand.
APAC
During Q1 2024, the n-Heptane market in the APAC region experienced a downward trend in prices. Several factors influenced market prices, including global economic uncertainties, reduced demand from downstream industries, and stable feedstock prices. The overall sentiment in the market was negative, with prices consistently decreasing throughout the quarter.
In South Korea, the price of n-Heptane saw the maximum changes compared to other countries in the region. The market in South Korea exhibited a similar downward trend, with prices declining by 2% from the previous quarter. This decline can be attributed to lower demand from the electronics and pharmaceutical industries, as well as geopolitical tensions in the Middle East affecting the supply chain.
Overall, the n-Heptane market in the APAC region experienced a challenging quarter, with prices consistently decreasing. This downward trend can be attributed to factors such as reduced demand, stable feedstock prices, and global economic uncertainties. The latest quarter-ending price for n-Heptane in South Korea was recorded at USD 1870/MT FOB Busan, reflecting the negative pricing environment in the region.
Europe
Europe's n-Heptane market faced a slump in Q1 2024. Prices dropped steadily throughout the quarter due to a mix of factors. Global economic concerns, weak demand from downstream industries, and stable feedstock costs all played a role. Belgium saw the steepest decline in the region, with prices falling 2% compared to the previous quarter. This can be linked to lower demand from paints and coatings, electronics and pharmaceuticals, along with supply chain disruptions caused by Middle Eastern tensions. Overall, a challenging quarter for n-Heptane in Europe, with prices reflecting a bearish market. The quarter ended with n-Heptane priced at USD 1870/MT FOB Antwerp, Belgium.
For the Quarter Ending December 2023
North America
The North American n-heptane market demonstrated a stable to slightly declining trend in Q4 2023, concluding the quarter approximately 5-10% lower than Q3, following a period of modest increases earlier in the year. Key factors contributing to this price movement included a balance between supply and demand. Domestic refineries maintained relatively stable supply, while adequate inventory levels met demand from crucial sectors such as construction and solvents, preventing significant price fluctuations.
Crude oil price fluctuations, particularly the surge in WTI crude oil prices in the second half of the quarter, had a mitigated impact on n-heptane prices. Increased shale oil production in the US, known for yielding more light naphtha fractions like n-heptane, and refineries' flexibility in using alternative feedstocks, such as naphtha, helped stabilize the supply. Seasonal factors, like reduced construction activity during winter months, contributed to the Q4 price decline, aligning with typical demand patterns for n-heptane.
Regional variations were observed, with generally lower prices in the Gulf Coast region due to higher production and refinery concentration. Conversely, the Northeast and Midwest experienced higher prices influenced by transportation costs and elevated demand from specific industries. The impact on downstream industries was positive, as stable or slightly lower n-heptane prices benefited users facing cost pressures. For refineries, profitability was influenced by production adjustments based on feedstock costs and demand variations.
Europe
In Q4 2023, the European n-heptane market witnessed a decline, with prices concluding the quarter 5-10% lower than Q3 after experiencing significant increases earlier in the year. Key drivers of this downward trend included weakening demand from vital industries like construction and solvents. Factors such as a general economic slowdown, increased adoption of alternative solvents, and downstream industries utilizing existing inventory contributed to the reduced demand for n-heptane. Ample supply and stable production capacity across the region played a significant role in the price decline. Import competition, particularly from Asia, contributed to the downward pressure on domestic prices. Despite elevated Brent crude oil prices, the impact on n-heptane prices was mitigated by refinery flexibility in adjusting production processes and utilizing alternative feedstocks. Additionally, increased imports of light crude oil fractions containing n-heptane from countries like the US helped manage costs. Regional variations were observed, with Western and Central Europe experiencing generally higher prices due to elevated transportation costs and concentrated demand. In contrast, prices in Eastern Europe were generally lower due to closer proximity to production facilities and less concentrated demand. The impact on industries was positive for downstream users, particularly those facing cost pressures, while refineries likely experienced varied impacts on profitability based on production costs and hedging strategies.
Asia Pacific
The n-heptane market in Asia Pacific underwent a dynamic Q4 2023, commencing with an upward trend attributed to robust regional demand and increasing crude oil feedstock costs. However, as the quarter progressed, the market trajectory diverged across the region. In China, prices faced downward pressure due to a combination of factors including weakening demand, elevated inventory levels, and government interventions to curb price hikes. India, on the other hand, experienced relatively stable prices, supported by sustained demand and comparatively lower feedstock costs than China. Southeast Asia witnessed volatile price movements influenced by fluctuations in local demand and import dynamics. Crude oil feedstock costs remained a crucial factor, with global price fluctuations impacting production costs. Despite initial increases driven by strong demand in China's construction and solvent industries, weakening demand in China later in the quarter played a contrasting role. Ample inventory, particularly in China, built up earlier in the year, exerted downward pressure on prices, especially towards the end of Q4. Government measures in China aimed at curbing price hikes in various sectors indirectly impacted the n-heptane market. Regional variations persisted, with China experiencing a downward trend, India maintaining relative stability, and Southeast Asia witnessing volatile movements influenced by local demand and import dynamics.
For the Quarter Ending September 2023
North America
The U.S. n-Heptane market in Q3 2023 saw a boost in prices thanks to the improvement in WTI prices and strong demand from the paints and coatings industry. The rising cost support from raffinate and heavy aromatic naphtha prices, coupled with a robust construction industry, contributed to the upward trend in n-Heptane prices. While the construction industry maintained its strength throughout the quarter, the output slowed compared to the previous quarter. WTI prices surged in the second half of the quarter due to OPEC+ production cuts, ensuring a bullish sentiment in the market. N-Heptane prices in the U.S. consistently rose in the first two months of the quarter but stabilized in the third month. Consequently, by the end of the third quarter, n-Heptane prices in the USA were assessed at USD 1430 per MT on an FOB basis.
APAC
In the Asia-Pacific region, the n-Heptane market witnessed a roller-coaster ride of sentiments in Q3 2023. The quarter commenced with a price dip, attributed to feeble cost support and sluggish demand from downstream sectors. However, a change in market dynamics unfolded in July and August, leading to a significant price upswing driven by increased demand from the solvent industry and surging crude oil prices. In China's domestic market, n-heptane prices dipped in July 2023 due to steady demand fundamentals and strong support from upstream sectors. Stable demand from downstream industrial solvents and the oil extraction industry contributed to this pricing trend. Though there was an uptick in procurements, abundant stock levels limited significant changes in pricing sentiments. Domestic production remained robust, resulting in ample inventory levels in both the domestic market and ports. Production cuts by Saudi Arabia and Russia elevated oil prices, putting pressure on Heavy Aromatic naphtha and its derivatives. Moreover, Sinopec raised prices as the market rebounded following a lackluster period in the previous two months. By the end of September 2023, n-Heptane prices stood at USD 1516 per MT FOB Qingdao, reflecting the ever-evolving market dynamics and the myriad factors influencing pricing in the Asia-Pacific region.
Europe
In Europe, n-Heptane prices followed a bearish trend throughout Q3 2023, primarily due to weak demand dynamics and limited cost support from upstream sources, resulting in restricted procurement activities. The Netherlands saw n-Heptane prices continually decline over the quarter, influenced by supply-side and demand factors. Despite some improvements in crude oil prices, these factors had little impact on n-Heptane prices due to weak procurements and stable inventory levels. The construction industry's underperformance, as highlighted in Dow Chemicals' quarterly report ending June 2023, contributed to subdued demand in the n-Heptane market. Demand from downstream industries, such as oil extraction, remained stagnant. Challenges faced by olefins, aromatics, and related sectors included diminishing margins, weak demand, and limited procurement activities, primarily due to competition from Asian imports and declining energy prices. As of the end of September 2023, n-Heptane prices were assessed at USD 1595 per MT FD Rotterdam, reflecting the ever-evolving market conditions and the various factors impacting pricing in the Netherlands.
For the Quarter Ending June 2023
North America
In American markets, n-heptane followed the price plunge in Q2 of 2023 owing to declining prices observed in crude oil, as n-heptane is produced directly from crude oil through precision refining and distillation. The value per unit quantity exported from American ports fluctuated in direct proportion to crude prices, the market noting the variation from USD 1.480659 per ton to USD 1.460663 per ton in regards to the pessimistic crude oil sentiments and a further similar trend is anticipated in the forthcoming quarters in direct proportion to the crude oil prices. Furthermore, improving demand coming from downstream pharmaceutical and other synthetic organic industries, where it is actively utilized in purification and octane rating measurements, ought to take the n-heptane prices on the uptrend in the coming Q3 of 2023. On top of that, the underwhelming performance of the construction industry and cheaper imports reaching the American ports from the producing nations have further hampered the consumption rates and eased the cost support, respectively, cumulatively resulting in further price decline.
Asia Pacific
The prices of n-Heptane in China have continued to follow a bearish trend similar to other saturated hydrocarbons like alkanes, haloalkanes, etc., as decelerating demand was received from the downstream pharmaceutical industry where n-heptane is actively utilized as an inert solvent for purification and recrystallization purposes. The cost of n-heptane witnessed a stable trend right from the first week of April after witnessing a slightly dipping overseas demand in March as demands related to the downstream pharma industries were not improving in the Chinese and other Asian markets. The market situation was stable, with the overall market’s supply being on the moderate side and the surplus market inventories reported by the market participants. The situation was stable, with weak demand noted, and enterprises followed up on their purchases just to fulfill their needs. Buyers showed reluctance towards high-priced goods. Nevertheless, in the Chinese market, prices are expected to take an uptrend in the coming quarter in regard to the optimistic demand from the downstream pharmaceutical industry.
Europe
The n-Heptane price in the European region witnessed a bullish trend across the entire Q2 of 2023 in the presence of promising demand incoming from the downstream pharma-based and other synthetic organics purification industries. The market situation was bullish in the entire Q2 for n-heptane as high demands were received from domestic and overseas suppliers, thereby governing high operating costs. Further, prices have increased in the presence of healthy trading activities from the participants in the region, and currency exchange-related price fluctuation from euro to USD has been appreciated. A steady flow of imports from the Asian markets further pushed up the n-heptane prices. However, in Germany bearish trend was observed in Q2 as in June, the IFO Business Climate Index for Germany fell to 88.5 points, down from 91.5 points in May, expectations were markedly pessimistic, and market participants observed the price decline toward the end of Q2 2023 and the assessment of the current situation was worst. On top of that stable crude oil and LNG market is expected to keep the feedstock cost pressure on the softer side.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, the n-Heptane market in the USA was in a bearish state due to weak demand and high supply, which caused prices to decrease. The reduced trading activity was a result of abundant supply and lower offers for non-premium spot cargoes. Suppliers were compelled only to buy what was necessary due to the drop in spot trading. The market fundamentals were weak, resulting in no firm bids or offers during this period. The demand for n-Heptane from the downstream solvent market decreased due to sluggish market offtakes and limited trading activities. The US market was characterized by uncertainty, which adversely impacted the trading dynamics.
APAC
The price of n-Heptane has decreased throughout the first quarter of 2023 due to slow demand and ample supply. As of March 2023, n-Heptane was being traded at USD 1508 per MT on a FOB Qingdao basis due to the absence of significant changes in the relevant factors impacting the final prices. However, the demand from downstream industries such as plastics, textiles, and electronics is expected to increase soon, which could impact the price. The upstream companies are predicted to increase their production rates in response to the demand. The price of n-Heptane further decreased in February 2023 due to lower crude oil prices and reduced demand from the plastics and electronics sectors.
Europe
Throughout the first quarter of 2023, the cost of n-Heptane in Europe remained stable. This was due to steady demand from downstream companies without any major interruptions in supplies. The supply-to-demand ratio remained consistent, resulting in only a slight price increase in January. The market was characterized by moderate demand and limited supply, leading to a bearish situation. Despite recent price reductions, the product demand remained on the negative side from the downstream industries like textiles and electronic industries due to the global economic slowdown. Purchasing activity in the European market was relatively stable during the first quarter, with no significant changes.
For the Quarter Ending December 2022
North America
In this quarter, the n-Heptane markets in North America and Asia were identical. The increased demand for the product from producers of electronics, plastics, and textiles was the primary factor that contributed to the price increase in the United States. There was enough of this product in the first half of this quarter to meet the increased demand. However, despite a decrease in demand in December, the price of this product increased due to a limited supply in warehouses and inventories as production activities slowed down in upstream companies
APAC
In this quarter, n-Heptane prices increased in the Asia-Pacific region. The primary factors that contributed to the price increase in China were the increased demand for the product. In the first half of this quarter, there was enough of this commodity to meet the increased demand from producers of electronics, plastics, and textiles. However, the impact of Covid- 19 curbs on upstream production resulted in a limited supply of this product in warehouses and inventories despite a decrease in demand in December. In terms of India, there was much demand for this product in the first two months. However, it began coming down in the third week of December, which let more volumes of this commodity remain in inventories and warehouses without being sold, making suppliers and sellers decrease their quotes to clear off the piled-up stocks.
Europe
The market for n-Heptane was the same across Europe this quarter. In the first two months, this commodity's price continued to fall in the Netherlands due to moderate demand from businesses downstream that had reduced production due to rising energy costs because of the ongoing conflict between Russia and Ukraine. Upstream businesses were also maintaining average production rates for the same reason. However, despite the fact that there was moderate demand for this product in December, there was a shortage in the market because upstream productions remained modest, which allowed the price to rise. The German market for n-Hexane moved in the same direction as the Dutch market.
For the Quarter Ending September 2022
North America
The events that took place in the crude oil markets of Europe and Asia influenced the markets for this product in North America. This quarter, n-Heptane's prices in the United States decreased. Due to a force majeure situation and lack of labor due to summer vacations, the supply of n-Heptane was restricted, which resulted in an average demand for this product from downstream businesses. As a result, textile companies used cyclohexane in their production processes rather than making use of this product.
APAC
This quarter, the entire Asia-Pacific region saw a decline in the n-Hexane market, but it got bounced back. When it comes to China, there are several reasons why the price of n-Heptane has decreased. The primary reason for price reduction in the early days of this quarter was the recession in the Asian crude oil markets, which resulted in a drop in upstream crude oil prices, as well as the provincial governments' enforcement of lockdowns. In addition to these, because of severe power shortages, n-Heptane-using industries and companies in the electronics and textile domain had to halt completely or significantly reduce their production rates. However, the prices started expanding from September 1st week due to the enhanced demand for this product for downstream processing. Consequently, on a FOB-Qingdao basis, n-Heptane closed its market in China this quarter at USD 1,650 per MT. In this quarter, the market for n-Heptane in India was identical to China's. This product's prices were influenced by the moderate demand for n-Heptane from businesses downstream and the lower prices of crude oil and started rising in September because of enhanced demand for this product by textile companies to meet the festive demands for their end-products.
Europe
The market of n-Heptane in Europe was identical to that of the Asian countries this quarter. The ongoing war between Russia and Ukraine tightened the supply of natural gas and crude oil, which significantly increased production and energy costs. As a result, downstream businesses were extremely concerned, and they showed only a passing interest in this product. The n-Heptane market in Germany and the Netherlands followed similar trends. The same factors that contributed to the decrease in this product's cost in the Netherlands during this quarter were also responsible for the price drop in Germany.
For the Quarter Ending June 2022
North America
The prices of n-Heptane were stable in the North American market during the second quarter of 2022 and started falling by the end of June. Stable demand from downstream cement, inks, and other solvents pushed the market prices downwards. The prices of International Crude Oil fell globally in April and the end of June, affecting the market sentiments. Oil prices continued to be under pressure as supply expectations in the market due to the Russia-Ukraine conflict eased slightly. Varying freight charges also affected the prices and shipment rates. Ample product availability was seen in the market with the traders as the product consumption decreased.
Asia
The prices of n-Heptane fell in the Asian market during the second quarter of 2022 with a quarterly declination of 3.2% in China, as recorded by Chem Analyst pricing team data. Fluctuations in the global freight charges due to the ongoing war between Russia and Ukraine supported the downward trend of the product in the regional market with the traders. Falling demand from downstream cement, solvents, and inks enterprises affected the market sentiments. Decreasing freight charges in the Asian market during the second quarter impacted the prices drastically, relieving cost pressure from the prices. The inventories were increasing with the suppliers, and the product consumption rate was hurt.
Europe
n-Heptane prices were stable in the European Union regions during the second quarter of 2022, with the fluctuations in the global petrochemicals market due to the ongoing war between Russia and Ukraine supporting the prices of Crude Petroleum. The freight charges and downstream demand were observed to be steady, affecting the market sentiments. The Russian war directly impacted the product trade, which impacted the regional market's consumption, buying, and selling. The processing costs of n-Heptane were optimal, and production of the products was more, causing ample availability of the products in the market.
For the Quarter Ending March 2022
North America
The n-Heptane market remained firm throughout the first quarter of 2022 under the cost pressure from skyrocketing upstream Crude oil value and strong demand from downstream solvents and other industries. Regional market dynamics remained tighter as the global demand for crude oil overpowered the available supply. Additionally, the East European conflict further worsened the demand-supply fundamentals of crude oil. During the quarter, Chevron Phillips reported normalcy in production with little to no production disruptions. The company also stated that while the steady rise in crude oil may not have any short-term consequences, the mid-to-long-term consequences might be disastrous, with worldwide ramifications. Thus, n-Heptane prices were assessed at USD 2518/MT during March.
Asia Pacific
Soaring upstream Crude oil value has been putting pressure on the global market, where downstream derivative players have started feeling the heat. n-Heptane prices has been escalating for the past few months across the Asian market on the back of stable offtakes from the downstream solvent sector coupled with rising input raw material costs. Furthermore, the rising infection rate of the new Omicron variant in China has become a concern to the regional players. Regardless of its less lethal effect, China's zero-tolerance and zero-covid policy has disturbed the overall economic growth of the regional market. Thus, post witnessing a consistent hike, n-Heptane (99%) price hovered around USD 1916/MT on a FOB basis in China and USD 2434/MT Ex-Mumbai, India, towards the end of the first quarter.
Europe
In the first quarter of 2022, n-Heptane prices remained firm due to intense cost pressure and robust demand from downstream solvent players. Upstream Crude oil started the year on a solid note, however, Russia's invasion of Ukraine exacerbated market dynamics, and crude oil went haywire where the prices were assessed at more than USD 130 per barrel. Consequently, downstream derivatives, including n-Heptane, came under pressure. Imports become strained as the relationship between the West and Russia got to its lowest point in decades. With limited availability and increased inflationary pressure, production costs increased substantially. Hence, in Q1, n-Heptane prices were assessed at USD 2805 per MT in Europe.
For The Quarter December Ending 2021
North America
In North America, the price trend of n-heptane marked stability during October and November. Pricing dynamics of upstream crude oil during these months was showcasing uptrend in October and marginally eased in November. While showcased significant ease in December, providing ease to downstream heptane in the domestic market. Meanwhile, downstream paints and coatings sector remained comparatively dull than other segment throughout the quarter, which also remained a major factor behind overall lower offtakes for the product across regional market. Thus, overall market of n-heptane was observed low in the ending December of quarter 4 of 2021.
Asia
In Asia, during the fourth quarter of 2021, n-heptane prices rose consistently, which was assessed around USD 2025/MT in India during October. Rising crude oil value remained a prime factor that pushed up the prices of n-heptane during Quarter 4 across regional market. However, the market of crude oil in China was observed fluctuating in the meantime and increased by the end of December, which resulted into overall stability in the price of n-heptane. Furthermore, demand for the product from the downstream solvent market remained firm, while traders noted ample offtakes from niche buyers.
Europe
The overall outlook showed that the price of n-heptane witnessed firmness during the Q4 2021 across European market. However, due to high natural gas prices amidst rising upstream crude oil values, input cost rose exponentially for several commodities including n-heptane. As the consumption increased in October and November so the prices increased for the product, while improved upstream crude oil availability in Europe market provided some ease to prices in December and the market of paints and coatings was stable throughout the quarter.
For the Quarter Ending September 2021
North America
In the North America region, n-Heptane prices traced an upward trajectory during the third quarter of 2021 supported by the sturdy demand from the downstream rubber and pharmaceutical industry. The arrival of hurricane Ida in the Gulf Coast of US hindered crude oil production, which resulted in the feeble supply of derivatives. The situation consequently pushed up the values of n-Heptane in the region. During the last month of the quarter, crude production improved, and the demand supply gap paved normalcy which finally dragged the prices of n-Heptane in both domestic and international market.
Asia Pacific
In Asia, n-Heptane market registered mixed sentiments during the third quarter of 2021 depending upon the demand pattern as well as the supplies of the product in the region. In India, under frequently changing market scenario, significant fluctuations in the n-Heptane values were observed. Demand for n-Heptane remained strong in the Indian market, while disturbed trade activities due to logistical issues and constrained availability of shipping containers kept on influencing the overall price trend of the product. In addition, volatility in upstream crude also supported the pricing trend of n-Heptane during this quarter. Prices of n-Heptane rose from USD 1738.47/MT to USD 1811.92/MT during July to August in India. However, a slight dip in the prices of n-Heptane was seen in September.
Europe
In Europe, n-Heptane prices observed an upward trend during the third quarter of 2021 followed by the lower production rates due to the energy crisis as well as the delayed imports. However, the demand from the downstream sectors including Pharmaceuticals and Rubber continued to be buoyant throughout the quarter. Further exorbitant freight charges and limited availability of shipping containers further sent ripples to the n-Heptane prices in the region.
For the Quarter Ending June 2021
North America
The resumption in industrial activities in the US Gulf Coast improved the supply outlook during the second quarter of 2021. However, some hinderance was observed as the colonial pipeline was shut for a week due to the cyber-attack in the second quarter. Amidst the recovered supply chains and continuous industrial activities, the demand supply gap narrowed which provided a further ease in prices in the regional domestic markets. Demand remained firm as orders were piled up, along with the continuous demand from the rubber and pharmaceutical industries.
Asia Pacific
During the second quarter of 2021, market activities remained subdued in the Asia Pacific region due to unprecedented rise in Covid cases. The second Covid wave in India restricted the public movement thus lowering the offtakes from bulk buyers. As a repercussion of reduced market activities in India and the surged inventories level, prices of n-Heptane stabilized in the Indian market with discussions drifting to USD 1824 per tonne in June. In China, import of the brent crude oil surged, which proportionally improved the availability of n-Heptane in the Chinese domestic market. In China, offtakes remained consistent from the rubber industries and pharmaceutical sector.
Europe
The n-Heptane market in the European region showcased mixed sentiments during the second quarter. In the first half, supply remained constraint owing to the low production levels at several manufacturing facilities. Whereas condition improved in the second half, as the supply chain restored with better distribution practices of crude oil. Demand remained persistent from downstream rubber and pharmaceutical sector. As a ripple effect, prices in the European region remained stable to firm in the second quarter of 2021.
For the Quarter Ending March 2021
North America
The North American region experienced the severe downfall in the crude oil inventories as the extreme freeze weather conditions in Texas and nearby of US Gulf coast area resulted in curtailed petrochemical production as several Naphtha crackers opted for force majeures in the region. Exxon Mobil shut its 369,024 bpd Beaumont refinery and 560,500 bpd Baytown refinery and several chemical plants in Texas along with its Louisiana, plants also facing operational issues. Reduced upstream run rates coupled with market tightness prompted ExxonMobil to increase the prices of n-Heptane by USD110/MT in March.
Asia-Pacific (APAC)
n-Heptane supplies were tight in the APAC region during Q1 2021, amidst major converters responding to the Saudi Aramco’s output cut in Crude Oil extraction by 1 Million barrels/day which proportionally surged the prices of crude barrels across in the Asian markets. Demand in the region surged as the buyers started to stockpile their inventories ahead of Chinese lunar new year holidays and uncertainty over import supplies. Due to sharp rise in upstream rates and shortage in market supplies, price of n-Heptane in the Indian market surged USD 1775/MT for April deliveries.
Europe
The supplies of n-Heptane in the region were constrained, owing to reduced imports from overseas throughout the quarter due to surging freights, higher shipment cost and Suez Canal blockage. Naphtha crackers in the region were heard operating at reduced capacity due to severe freeze weather conditions in the northwest Europe. Demand however surged due to consistent offtakes from the downstream solvent sector throughout the quarter.
For the Quarter Ending December 2020
North America
Supply of n-Heptane eased after mid-October as producers increased production rates after plant outages caused by seasonal hurricanes. With most manufacturers eyeing on recovery in demand post the roll out of vaccine towards the year-end, operating rates were pushed higher by December. Recovery in upstream crude oil prices, however capped the producer’s margins. The growing demand for high purity material from the pharma industry, combined with an uptrend in paints and coatings manufacturing boosted the market sentiments.
Asia
Buoyed by increasing demand and maintenance turnarounds reported by some Chinese producers, n-Heptane offers were raised by a significant percentage in Q4. The price of n-Heptane was susceptible to huge fluctuations in the quarter due to volatile upstream dynamics. Resilient demand during the fourth quarter from the pharmaceutical industries raised the market sentiments. Price surge was driven by increasing cost pressure on the raw material front because of restricted and delayed overseas shipments. An uptrend was observed on the global level due to rising efforts for sustained economic and financial revival.
Europe
Alleviating demand for n-Heptane from the pharmaceutical intermediates and industrial solvents endorsed the product’s market outlook in Europe. Firming crude oil, however created a hazy picture in the European Union which was heard planning to increasing its crude oil imports to support the economy. In early November, the accessibility of Europe for n-Heptane improved as feedstock constraints in the upstream market had mostly been leveraged because of sustainable recovery policies along with supply chain. Several European countries were heard emerging from the crisis at varying rates as plant utilization rates gradually enhanced due to significant pick-up in demand.
