n-Heptane Prices Witness Growth in China Last Month

The market for n-Heptane in China is showing strong growth this quarter. This increase is due to several factors, including increased demand for octane-boosting agents, higher global crude oil prices, and an overall increase in automobile sales across the country.

n-Heptane is primarily used as an ingredient in paint thinners, but it also has other uses, such as being used as an industrial solvent or as part of brake fluid formulations. The largest consumer market for the n-Heptane product is the automotive industry, and the uptick in demand is pushing prices up, and more businesses are opting for this highly efficient product over traditional alternatives like butane or propane.

According to the observations by SinoPetrochem, n-Heptane prices are growing in China last month and have grown by almost 8% till now. This is great news for the industry, as it means that companies can continue to invest in their products without worrying about price increases from their raw materials.

This increase comes at a time when many were beginning to worry about the health of the chemical industry; with so much focus on pollution, some were afraid that China would enact stricter environmental laws that would hurt business profitability. However, these fears have been allayed by the fact that no new laws or regulations have been passed recently, and any updates on this front will be available in advance so that companies can plan accordingly.

The price increase can be attributed to the tight supply of n-Heptane, which is caused by the economic recovery, the large area recovery of production of terminal pharmaceutical plants and chemical enterprises, and the extremely increased demand. The significant increase in the average production of n-Heptane is also due to the complete cancellation of the dynamic zeroing strategy by the provincial governments.

While manufacturers were initially concerned about price fluctuations due to sanctions placed on China by the United States government, those worries have been alleviated by increased trade between these two countries, with American businesses seeking out n-Heptane as well as Chinese suppliers looking to sell this product at higher prices than they would be able to get domestically.

As on January 31, 2023, the cost of n-Heptane in China stood at USD 1,300 per MT on a FOB Qingdao basis.

SINOPETROCHEM – Providing daily insight for all sectors, including basic solvents, chemicals, plastics, specialty and fine chemicals, energy and feedstocks, get the latest insights to keep up-to-speed with chemical industry corporate and economic developments that shape tomorrow’s opportunities.