Macro Factors Drive Costs, Shandong Cyclohexanone Prices Up 14.48% in 5 Days

March 5 news

I. Price Trends

From March 1st to 5th, the cyclohexanone market in Shandong Province showed a continuous upward trend, with the focus of cyclohexanone prices constantly adjusting to higher levels. A major factory in Shandong cumulatively increased its prices by 950 CNY/ton over the five days, driving the overall market trend upwards. On March 5th, the cyclohexanone market price in Shandong was around 8,250-8,350 CNY/ton.

II. Analysis of Core Influencing Factors

Geopolitical disturbances drive cost increases: The ongoing tensions in the Middle East have kept international crude oil prices at high levels, leading to an increase in the prices of upstream raw materials such as benzene. Benzene, being the primary raw material for cyclohexanone, has seen a recent price rise, providing cost support for cyclohexanone and driving up the production costs. This has strengthened the willingness of companies in China to adjust their prices.

Improved Supply-Demand Transmission: Tight supply and a rebounding demand are jointly driving up prices. Currently, some cyclohexanone plants entered maintenance periods in March, reducing the market’s effective supply and leaving spot inventories at relatively low levels. Coupled with the gradual recovery of downstream demand from industries such as synthetic fibers and coatings, market expectations for a rebound in cyclohexanone demand have strengthened, boosting market confidence and shifting the supply-demand dynamic toward a tighter balance.

III. Future Market Forecast

Currently, under the dual effects of cost support and tight supply, in the short term, the price of cyclohexanone is expected to remain at a high level, and there is a possibility of a slight increase. In the long term, more attention should be paid to the progress of new capacity additions and the recovery of downstream demand in China. If the supply-side pressure increases, prices may face downward pressure.