Cyclohexane Market Supply and Demand Balance, Operating Steadily in China

April 24th, news:

I. Price Trends

According to the monitored data, as of April 24, the average price of top-grade cyclohexane for industrial use in China was 7,516 CNY/ton. In early April, the market price of cyclohexane showed a relatively stable trend due to a balanced supply and demand relationship, with small price fluctuations. However, entering mid-April, influenced by international crude oil price fluctuations and plant maintenance in some regions, the price of cyclohexane began to show signs of increase. Some companies raised the factory price of cyclohexane by around 100-200 CNY/ton. By late April, as the market supply gradually recovered and the growth in downstream demand weakened, the upward trend in prices slowed down, and in some regions, prices even saw a slight decrease.

II. Market Analysis

Market-wise: In April, trading activity in the cyclohexane market was generally moderate. At the early stage of price increases, traders and downstream enterprises showed increased purchasing enthusiasm, leading to a rise in market transaction volumes. However, as prices continued to climb, downstream enterprises began to adopt a more cautious stance toward the high-priced cyclohexane, gradually reducing their purchase volumes. Some smaller downstream enterprises even scaled down their production operations to cope with the growing cost pressures.

On the demand side: Nylon is one of the major downstream products of cyclohexane. In April, overall demand in the nylon industry was moderate. Although the operating rates of nylon producers in some regions increased somewhat, due to slow growth in end-market demand and significant inventory pressure, companies did not significantly increase their purchases of cyclohexane. Some enterprises, in an effort to cut costs, have begun exploring alternative materials or optimizing their production processes, thereby reducing their cyclohexane consumption. As for the solvent industry: Demand for cyclohexane in the solvent sector remained relatively stable, yet it was also affected to some extent in April. With increasingly stringent environmental regulations, some solvent manufacturers are facing greater environmental pressures, which have led to restrictions on their production scales and a corresponding decline in demand for cyclohexane. Additionally, competition from other solvent products on the market has further impacted cyclohexane demand.

Production situation: In April, the overall operating rate of cyclohexane producers in China fluctuated. In the first ten days of the month, some enterprises' facilities were running normally, and the market supply was relatively stable. However, starting from mid-month, some companies conducted plant maintenance, leading to a decrease in market supply. For example, a large cyclohexane producer in East China carried out a 10-day plant maintenance, causing a certain level of tightness in the cyclohexane supply in that region. By the end of the month, as the maintenance facilities gradually resumed production, the market supply began to ease.

III. Future Market Forecast

Cyclohexane analysts believe that, in the short term, cyclohexane prices are likely to continue fluctuating. If the price of benzene—the raw material—continues to rise, cyclohexane costs will further increase, potentially driving prices higher. However, if downstream demand remains sluggish and market supply gradually increases, prices could face downward pressure.