Insufficient Demand for Cyclohexane in China, Weak Market Situation Persists

May 26th News

I. Price Trends

According to the monitored data, as of May 26, the average price of premium industrial-grade cyclohexane in China was 7,383 CNY per ton. Currently, cyclohexane is mainly operating within a narrow range, with weak demand suppressing any upward trend.

II. Market Analysis

Market Overview: Over the past week, China’s cyclohexane market has shown a weak trend characterized by stable prices with downward pressure, regional price divergence, and sluggish trading activity. The average weekly mainstream price was approximately RMB 7,200 per ton (including tax for premium-grade products). In Shandong, the ex-factory price ranged from RMB 6,700 to RMB 7,260 per ton; in East China, quoted prices were between RMB 7,800 and RMB 8,000 per ton. The price spread continues to widen. With weakening costs, ample supply, and lackluster downstream demand, the market as a whole remains under pressure, and there is insufficient momentum for a rebound.

Supply side: This week, the cyclohexane market in China continued to have a loose supply, with high production levels and inventory accumulation, leading to increased pressure on sales. Regional price competition is intense, and the operating rate remains high: the average operating rate of cyclohexane plants in China is 75%-80%. Major manufacturers such as Luxi and Hengsheng are operating at full capacity. Previously shut-down units have resumed production, ensuring ample spot supply.

On the demand side: Demand in downstream core industries remains weak, with insufficient end-customer orders. Downstream companies continue to adopt a strategy of "low inventory and on-demand procurement," resulting in predominantly small-scale transactions in the market and a lack of support from large orders. For caprolactam/adipic acid—key downstream products—the operating rate has remained steady at 70%-75%; however, the end-use nylon and synthetic fiber industries are in the off-season, facing inadequate orders and stable, unchanging demand driven solely by immediate needs, leading to only small, on-demand purchases. Consequently, demand for cyclohexane remains limited. In the solvent industry, constrained by environmental regulations, some enterprises have shifted to alternative products, causing continued contraction in demand and low purchasing intentions. Other downstream sectors—such as electronics and coatings—also show subdued demand with no clear signs of recovery, making it difficult to provide meaningful support. As for purchasing attitudes, downstream players remain highly cautious, resisting high prices, and bulk transactions are rare, keeping overall market activity at a low level. Overall, demand remains weak, making it challenging to absorb the ample supply available.

III. Future Market Forecast

Cyclohexane analysts believe: In the short term, the cyclohexane market in China will remain weak, with prices expected to stabilize or slightly decrease, showing narrow fluctuations. The main operating range is 7000-7300 CNY/ton, and the high-price areas in East China may experience a small decline.