Cyclohexane Market Supply Excess, Prices Mainly Stable

April 29th, news:

I. Price Trends

According to the monitored data, as of April 29, the average price of top-grade cyclohexane for industrial use in China was 7,516 CNY/ton. This week, the market price of cyclohexane showed a fluctuating downward trend. At the beginning of the week, the average market price was in a relatively stable range, but as the supply and demand relationship changed, prices gradually declined. By the end of the week, the main market price of cyclohexane had fallen by about 200-300 CNY/ton compared to the start of the week. Price performance varied across different regions; the East China region, as the primary consumption and trading area for cyclohexane, saw a relatively larger decrease in price, while the North China region maintained relatively firmer prices, though they also experienced some decline.

2. 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 companies showed increased purchasing enthusiasm, leading to a rise in market transaction volumes. However, as prices continued to climb, downstream companies began to adopt a more cautious stance toward the high-priced cyclohexane, gradually reducing their procurement volumes. Some smaller downstream enterprises even scaled down their production operations to cope with the growing cost pressures.

On the demand side: In the solvent industry, demand for cyclohexane has also declined. As environmental regulations become stricter, some solvent companies have begun to seek alternative products, thereby reducing their use of cyclohexane. Meanwhile, market competition is intense, driving down prices of solvent products and squeezing profit margins for companies, which further dampens demand for cyclohexane.

Production situation: This week, the operating rates of cyclohexane production enterprises in China are generally at a high level. Some previously shut-down facilities have resumed production, further increasing the market supply. The operating rates of some large enterprises remain above 80%, leading to a continuous increase in supply pressure.

III. Future Market Forecast

The cyclohexane analyst believes that the situation of oversupply in the market will be difficult to change in the short term, and downstream demand is also unlikely to show any significant improvement in the near future. If the price of benzene, the raw material, continues to fall, further reducing cyclohexane’s costs, prices could continue to decline.