European hexane prices plummet to lowest since 2021 on sluggish demand

European hexane spot prices dropped to more-than-four-year lows Jan. 19, as seasonal demand patterns failed to materialize and abundant supply weighed heavily on market fundamentals, sources said.

Platts, part of S&P Global Energy, assessed the Northwest Europe free-delivered spot price of hexane at Eur810/mt Jan. 13, the lowest level since March 9, 2021, when it was assessed at Eur790/mt.

The sharp decline reflects a fundamental breakdown in typical demand patterns, with the recent olive oil extraction season failing to generate anticipated consumption volumes across Europe.

Traders said that the expected seasonal uptick from oil extraction operations did not materialize to the expected levels, leaving suppliers with excess inventory.

Distributors noted that any upward price movement in the hexane market was supported by feedstock naphtha rather than genuine demand recovery, with market sources emphasizing the absence of typical seasonal consumption patterns during the fourth quarter of 2025.

The weak seasonal performance has created storage optimization challenges for market participants. Traders said plenty of material remained available, with tank space better allocated to other petrochemical materials experiencing stronger demand.

Hexane serves primarily as an extraction solvent for oil production from olives, seeds and nuts, making seasonal agricultural cycles critical demand drivers.

Hexane also finds application in polymerization processes, though this segment remained flat year over year as industrial users typically secure volumes through contracted arrangements rather than spot market purchases.

The combination of seasonal demand shortfalls and abundant product availability has fundamentally altered the dynamics of Northwest Europe's hexane market. Market sources said similar conditions could persist through 2026, suggesting structural challenges beyond typical cyclical patterns may be influencing regional consumption trends.