Insufficient Demand for Cyclohexane in China, Prices Narrowly Fluctuate

May 21st, according to news

I. Price Trends

According to the monitored data, as of May 21, the average price of top-grade industrial cyclohexane in China was 7,383 CNY per ton. Currently, the cyclohexane market is mainly characterized by narrow fluctuations, with weak demand suppressing any upward movement.

2. Market Analysis

Market-wise: End-demand at the terminal level remains weak, with purchasing driven primarily by immediate needs. Downstream caprolactam and adipic acid plants maintain operating rates between 70% and 75%, yet orders remain insufficient. While basic demand stays stable, there’s no sign of incremental growth. Downstream companies continue to keep inventories low and adopt a just-in-time procurement approach, resisting higher prices. Large-scale transactions are rare, and traders are adopting a wait-and-see attitude. The nylon and synthetic fiber industries are in their off-season, and textile demand remains weak, transmitting this sluggishness all the way down to the cyclohexane segment—leaving the demand side lacking any significant upward momentum.

Supply side: Plant operations are stable, with ample spot supply. The average operating rate of cyclohexane plants in China is 75%-80%. Major manufacturers such as Luxi and Hengsheng are running at full capacity, ensuring a stable and relaxed supply. Corporate inventories are moderately high, with port inventory in East China around 12,000 tons, leading to increasing pressure on shipments.

In terms of costs: The price of pure benzene has weakened, easing cost support. Since May, the price of raw material pure benzene has been declining steadily. Today, the price of pure benzene in Shandong stands at 6,800 CNY per ton, with a monthly price decrease exceeding 5%. As production costs for cyclohexane have fallen, and benzene prices have softened, cyclohexane’s gross profit per ton has rebounded to between 800 and 1,000 yuan. Manufacturers now lack confidence in holding prices, and their willingness to sell at higher prices has diminished. The impact of falling costs on spot prices is lagging, resulting in short-term price stability. In the near term, prices may continue to face downward pressure along with benzene prices.

III. Future Market Forecast

The cyclohexane analyst believes that in the short term, the cyclohexane market price lacks upward momentum. Downstream demand is insufficient, and the upstream cost side lacks support, resulting in primarily narrow fluctuations.