European Hexene Prices Weaken in April After Having a Strong Performance in March

 

Hexene prices have been termed as stable to weak in the German market during the initial assessment as market participants reported declined demand from downstream Polyethylene. Hexene prices in the European market remained firm throughout March owing to increased prices of imports reaching German shores. The European continent has been mired in the firm grip of inflation as energy prices have been skyrocketing pressuring the commodities market.



The European Polyethylene market has been going through an upheaval as demand from the packaging sector has been robust however PE producers have been left wanting with the increasing energy and feedstock prices. Increasing costs have culminated in production cuts and consequently, demand for PE intermediates including Hexene which is widely used in the production of Linear Low-Density Polyethylene (LLDPE) has dipped in the first week. Hexene prices in Germany have been assessed at USD 3385 per MT on a CFR basis. Market participants have been vigilant of the current development in the PE market has been considering a conservative (wait and see) approach in terms of procurements.

Declining production rates are expected to provide a timely opportunity for the US and Middle East Asian Polyethylene to reach European shores. The USA and Saudi Arabia are key players having surplus PE production and can easily avail PE as PE prices are still firm in the European market. This is likely to further deter the production rates in Europe.

Meanwhile, in Middle East Asia, Hexene prices have fallen as the crude oil prices have declined sharply in the last couple of weeks owing to demand stability and supply enhancement globally. SABIC, a key manufacturer of Hexene in the region, has reported a drop in prices as feedstock costs have deteriorated.

As per ChemAnalyst, “Hexene prices have been declining and may continue to dip further in coming weeks as demand fundamentals are expected to remain weak in the short term. Supply fundamentals are expected to strengthen as both European and Middle East Asian Hexene production is likely to remain stable to firm availing ample material in the market.”


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