The hexane market has been balanced to tight in recent years, because of decreased production.
Producers are using a different crude slate feedstock that yields less hexane, and this has contributed to a tightening of market conditions.
Production is generally on an as-needed basis and often no surplus material is available.
Demand for hexane usually increases during the olive harvest season because it is used for extracting oil.
However, the recent economic troubles in the eurozone have resulted in cautious buying attitudes, with many buyers concerned about the possibility of lower downstream demand.
Nevertheless, the market is primarily feedstock driven, and prices remain influenced by volatile crude oil and naphtha values.
Updated to mid-August 2012