Negative Factors Weighing Down, Cyclohexanone Prices Likely to Continue Declining in Early June

June 9th News

I. Price Trends

According to the data monitoring system, in early June, the cyclohexanone market in Shandong, China, showed a continuous downward trend, with the price of cyclohexanone continuously moving towards lower levels. The market situation in the early part of the month exhibited a one-sided downward trend.

At the beginning of the month, the market price of cyclohexanone in Shandong was 9,100 CNY/ton. In the first week of May, the market trend then experienced a decline before stabilizing. Starting from the 7th, the cyclohexanone market in Shandong continued to fall, with prices breaking below the 9,000 CNY/ton mark. As of June 9th, the reference price for cyclohexanone in Shandong was around 8,700-8,800 CNY/ton.

2. Analysis of Core Influencing Factors

Supply aspect: Entering June, the overall supply of cyclohexanone in China remains relatively loose. The operating rates of cyclohexanone facilities are at a high level, with ample spot supply. Some suppliers face certain supply pressures, and the pace of destocking is gradually starting. Overall, the supply side provides insufficient support for the market trend of cyclohexanone.

Demand Side: Currently, downstream demand for cyclohexanone remains subdued, with demand transmission occurring slowly. Overall operating rates in downstream markets are relatively low, and rigid demand procurement is being conducted with caution. As a result, the demand side is providing weak support to the market.

III. Future Market Forecast

Currently, the trading atmosphere in the cyclohexanone market in Shandong is average, with limited support from the supply and demand sides. It is expected that in the short term, the prices of cyclohexanone in Shandong will mainly undergo minor adjustments. More attention should be paid to changes in the supply and demand as well as cost-related news.

From a technical perspective

From the spot market analysis system, it can be seen that since early June, the 10-day moving average of cyclohexanone has been below the 20-day moving average, and the downward difference has been continuously expanding, indicating a downward trend in line with predictions. The auxiliary indicators show that the price of cyclohexanone is at a mid-high level among the five levels (annual position). Combining the two indicators, it is predicted that there is a high risk of a downward trend in the market price of cyclohexanone. It is also necessary to closely monitor the fluctuations in crude oil prices, the operation status of facilities, and changes in downstream orders in China.