For the Quarter Ending June 2022
North America
The prices of n-Hexane surged in the North American market during the second quarter of 2022, with an escalation in the prices of upstream feedstock crude oil varying due to the ongoing war between Russia and Ukraine. The inventory pressure was low, and fewer products were stockpiled with the traders and the suppliers in the regional market. Rising freight charges globally and congestion in various ports caused a shortage of products. Disrupted supply chain values were also observed, affecting the market sentiments. The demand from the downstream market also surged in the region; thus, traders increased their prices.
Asia
The prices of n-Hexane surged in the Asian market during the second quarter of 2022 with a quarterly escalation of 7.5% in India, as recorded by Chem Analyst pricing team data. There has been a spike in crude oil prices, and demand has remained strong. In the short term, the supply tightening challenges are expected to ease. In the short term, oil prices were boosted by low inventories and expectations of tightening supply and ran at a high level under the influence of the EU's anticipation of implementing the Russian oil ban bill. In the medium and long term, oil prices sought to rebalance supply and demand in the context of the Fed raising interest rates and increasing demand uncertainty.
Europe
The price trend of n-Hexane surged in the European market during the Q2 of 2022, with a quarterly escalation of 6.2% in Germany, as recorded by Chem Analyst pricing team data. A surge in demand for the product from the downstream glues, varnishes, and inks sectors supported the upward price trend of the product in the region. The inventories were observed to be decreasing, and fewer products were stockpiled. Additionally, favorable supply and demand led to a slight increase in liquefied gas prices in many European places due to the maintenance of liquid plants. The prices of upstream feedstock Crude Oil varied due to the ongoing war between Russia and Ukraine supporting the price trend.
For the Quarter Ending March 2022
North America
In the first quarter of 2022, the n-Hexane market experienced an upward pricing trajectory in the North American region. Consistent upward crawl in upstream crude oil prices supported this uphill curve during the first quarter. A constant surge in the prices of n-Hexane was seen in the US owing to the constraint availability and firm demand pattern from the downstream solvent industry in the overseas market. The inflation in the pricing trend of n-Hexane was additionally backed by high-end demand from textile industries which caused the prices to reach USD 1734/MT FOB during March in the USA.
Asia Pacific
n-Hexane prices climbed up in Asia Pacific during the first quarter of 2022. The hike was observed owing to increased demand for the solvent in textiles manufacturing and for the extraction of oils. Besides higher upstream crude oil prices in mid-March and scarcity of supplies in the region due to Russia's invasion of Ukraine significantly influenced manufacturing rates and operating costs. Besides, the crisis in Ukraine severely hampered supply networks across the global market, which led to the rise in prices of n-Hexane in India. n-Hexane prices were estimated at USD 1580/MT in March 2022.
Europe
In continuation to the last quarter of 2021, n-Hexane showcased positive market sentiments in the European region through the first quarter of 2022. Solvent prices rallied as the regional market recovered with improved demand in other European countries. Persistent shortage in supplies and increase in the demand across the oil extraction industry resulted in high price of n-Hexane in the region. Furthermore, increased freight charges due to container shortage disrupted supply chains which resulted in firm prices which were assessed at around USD 2158/MT towards the end of Q1 2022.
For the Quarter Ending December 2021
North America
Due to consistent demand from domestic as well as from international market, n-Hexane price kept on oscillating in a narrow range throughout Q4 2021. Demand fundamentals for solvents across US market remained modest to dull during this timeframe. However, being highly versatile and widely used solvent, n-Hexane performed better than other commodities. Industrial intermediate and pharma remained major downstream driving sectors during this timeframe in USA, while most of the exports demand was also driven by these segments. During December, n-Hexane price assessed around USD 870/MT in USA. However, only marginal fluctuations were observed throughout the quarter i.e., USD 50-60/MT.
Asia
Asian market kept on oscillating throughout the quarter on the back of frequently changing market dynamics. In China, sudden surge in coal prices shot up the price of several commodities during October, which later showcased some ease by the end of December. Meanwhile in India, after witnessing astonishing height, n-Hexane prices started gaining stability during December in Indian market. Traders revealed that, during festive season in India, base price of several solvents rose up abruptly on the back of high demand from the domestic market. However, for December month, feeble offtakes and ample inventories level pulled down the price across domestic market, while major manufacturers heard ready to negotiate on their old cargoes. Prices heard hovering around USD 1000/MT during December in India.
Europe
n-Hexane price remained buoyant throughout Q4 2021 on the back of firm offtakes from the domestic market. However, overall buoyancy was induced after witnessing sudden surge in natural gas cost, which later eased in the domestic market. Furthermore, demand fundamentals across Germany and UK remained firm, as pandemic related uncertainties remained less dominant than Q3 2021. Conclusively, post witnessing consistent hikes during October and November, prices marginally declined during December across Europe, which later projected to show uptrend in January 2022.
For the Quarter Ending September 2021
North America
In the third quarter of 2021, n-Hexane market in North America experienced an upward rally supported by the robust demand from the downstream pharmaceuticals and rubber industries and the limited supply. In USA, the production rates were significantly reduced due to the arrival of Ida hurricane that made landfall in the gulf coast of the US at the end of August. Industries remained closed as a part of contingency plan for approximately two weeks that shot up the prices of n-Hexane in this timeframe.
Asia Pacific
In Asia pacific region, n-Hexane market showcased mixed sentiments during the third quarter of 2021. At the beginning of the quarter, key manufacturers ramped up their production rates after the resurgence in the industrial activities that led to the ample availability of stock and a decline in the price of n-Hexane. However, in the latter half, an upsurge in the values of n-Hexane was observed due to several factors such as congestion on several ports of China that caused supply chain disruption. In India, after witnessing a steep decline due to sufficient supplies under stable offtakes from the domestic market, n-Hexane prices showcased a sharp rebound in September. Several solvents in Indian market gone through a price revision, as the demand from the domestic market changed under the market optimism. Hence, Ex Kandla n-Hexane prices dropped to USD 961.49 per MT from USD 963.93 per MT from July to August. However, in September, Ex Kandla n- Heptane prices stood at USD 1048 per MT witnessed a significant hike since July.
Europe
n-Hexane market experienced an upward trend in the European region during the third quarter of 2021. The price of n-Hexane rose significantly owing to the delayed supplies from Asian countries followed by the congestion on several ports of China and constraint availability of shipping containers. Moreover, the demand remained firm from the end use industries including rubber and Pharmaceuticals. Furthermore, volatile crude oil prices also influenced the prices of n-Hexane and hence, in Europe n-Hexane prices kept on surging throughout the quarter.
For the Quarter Ending June 2021
North America
The resumed industrial activities in the US Gulf Coast, improved the market outlook during the second quarter of 2021. As a repercussion the supplies in the n-Hexane observes a drastic surge and improved compared to the previous quarter, 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 increased industrial activities, the demand supply gap narrowed which further eased the prices in the regional market. Demand was deemed good following continuous offtakes from the rubber and pharmaceutical industries.
Asia Pacific
During the second quarter of 2021, market activities were subdued in the Asia Pacific region due to unprecedented rise in COVID cases in several Southeast Asian countries. The second COVID wave in India restricted the public movement and amidst the hovering uncertainties buyers were reluctant to procure in bulk. However, the situation improved in the second half following the ease in restrictions which led to improved market activities, therefore the offers of n-Hexane were raised in June with Ex-Work Kandla prices reaching USD 805 per tonne. In China, imports of the brent crude surged which proportionally improved the availability of the n-Hexane in the Chinese market.
Europe
n-Heptane market in the European region showcased mixed trends during the second quarter. Availability in the first half of Q2 remained constraint owing to the low production levels at several manufacturing facilities along with the delayed exports to the Asian buyers. The condition improved in the second half, as the supply chain was restored with better output and export of crude oil. Demand remained continuous from downstream rubber and pharmaceutical sector. Thus, 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 n-Hexane market was severely impacted as the extreme freeze weather conditions in Texas and US Gulf coast area took a toll over almost all the regional crackers which were shut starting mid-February. Surging Crude rates proportionally impacted the prices of almost all grades of n-Hexane in the region. ExxonMobil announced positive price revision for almost all grades of n-Hexane by USD 110/MT for its March deliveries. The demand surged from the export segments, followed by improved offtakes from the downstream industrial solvent sector.
Asia-Pacific (APAC)
n-Hexane supplies were short in the APAC region during Q1 2021, amidst major refiners responding to Saudi Aramco’s output cut in crude oil extraction which hiked the prices of almost all petrochemical products early in the quarter. Prices of n-Hexane in China market in March were assessed at USD 1505/MT FOB Shanghai. Producing plants in the region were operating at full swing to coverup the rising enquiries from the western region which significantly improved the margins. Several buyers were heard piling up their inventories ahead of the Chinese lunar year holidays starting Feb. 12, followed by better prospect for the refinery solvents.
Europe
The supplies of n-Hexane in the region were constrained, owing to low refinery operating rates reported due to severe freeze weather and transportation lag in the northwest Europe. A sharp fall in the imported volumes was reported as the US shipments declined amid bad weather conditions with the situation further exacerbated by escalating shipment cost and Suez Canal blockage hindered the Asian supplies. On the basis of feedstock price movements, the European producers adjusted their prices to new hikes in early March.
For the Quarter Ending December 2020
Asia
Steady hike in the prices of upstream crude oil backed by low product availability across Southeast Asia provided a striking upward push to the prices of N-hexane in Q4. In some southeast Asian countries, such as Malaysia and the Philippines, prolonged national lockdowns however, further dampened possible signs of demand recovery and added to the growing inventory pressure. Price of n-Hexane remained in the substantial to firm range in the first half of the quarter due to year-end restocking activities observed in China and Taiwan. Some plant turnarounds in the region indicated towards potential tightness in the supply in H1 2021.
Europe
Alleviating demand for n-Hexane from the pharmaceutical intermediates and industrial solvents pushed up the market sentiments in Europe. Several manufacturers were heard increasing their production rates in the first half of the quarter while its utilization grew in the pharmaceutical industry for forming pills and tablets. In early October, there was an upward push to the pricing curve of n- Hexane due to active restocking by end-user industries owing to levelled demand. Regional prices also rallied on the back of firmer crude oil due to production related constraints from the producing belts.
North America
High volatility in the international crude oil market continued to hamper the n-Hexane price curve with the uniform demand growth observed in the downstream sectors. Prices revived towards the end of the quarter with immense utilization reported in the industrial solvent applications. The demand for food grade Hexane surged due to better offtakes for edible oil extraction. Eventual restart of some upstream crackers in December lifted the production volumes.
