Hexene Prices to Surge in US Amid Climate and Economic Factors

Hexene Prices to Surge in US Amid Climate and Economic Factors

Aleksander Novaković
2 min read

Hexene Prices to Surge in US Amid Climate and Economic Factors

In the US, the Hexene market is set to experience a significant price hike, driven by an uptick in hurricane forecasts in the Gulf and low inflation data from April 2024. The impact is anticipated to affect the Polyethylene (PE) market, with downstream High-Density Polyethylene (HDPE) markets in Texas showing a plateau in prices despite the influence of multiple factors, including a notable 8% surge in carbon prices over the past two months. The production and utilization rates of US Hexene have been below 60%, further exacerbated by the fluctuations in global natural gas prices and the offline status of major plants. The global natural gas price volatility has also played a part in affecting domestic Hexene supply. Meanwhile in Europe, Hexene prices are projected to increase modestly in June, reflecting higher supply costs and elevated freight charges, which in turn will impact domestic HDPE and Linear Low-Density Polyethylene (LLDPE) capacities.

Key Takeaways

  • Hexene prices in the US are set to surge due to higher hurricane frequency and low inflation.
  • US Hexene prices increased by 2-3% in June, influenced by an 8% hike in carbon prices.
  • Downstream HDPE prices in the US plateaued at USD 1235/MT, despite weaker demand in construction and automotive sectors.
  • European Hexene prices may rise 2-3% in June, impacted by high freight charges from the Middle East and US.
  • Asian and NE Asian PE demand is expected to remain flat, with prices influenced by higher Naphtha contracts.


The projected surge in US Hexene prices, attributed to increased hurricane activity and low inflation, signifies potential strain on the Polyethylene market, especially affecting HDPE and LLDPE sectors. The 8% surge in carbon prices exacerbates this situation, impacting both US and European markets. Short-term implications encompass increased costs for manufacturers and potential downstream price adjustments, while long-term effects could lead to shifts in global supply chains and investment in more resilient infrastructure. Additionally, the flat demand in Asia suggests an impending global market adjustment, potentially resulting in altered trade patterns and heightened regional self-sufficiency.

Did You Know?

  • Hexene: A colorless liquid alkene derived from petroleum, used primarily in the production of high-density polyethylene (HDPE) and linear low-density polyethylene (LLDPE). It acts as a co-monomer in the polymerization process, enhancing the strength and flexibility of the final plastic products.
  • High-Density Polyethylene (HDPE): A thermoplastic made from petroleum, known for its strength, rigidity, and resistance to moisture and chemicals. It finds wide application in plastic bottles, corrosion-resistant piping, geomembranes, and plastic lumber.
  • Naphtha: A liquid hydrocarbon mixture derived from petroleum or natural gas, serving as a crucial feedstock in the production of petrochemicals like ethylene and propylene, which are vital for the manufacture of plastics such as polyethylene. Fluctuations in Naphtha prices can significantly impact the cost of producing these petrochemicals and subsequently the prices of downstream plastic products.

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