June 30 news
I. Price Trends
According to the monitored data, as of May 30, the average price of industrial-grade premium cyclohexane in China was 7,416 CNY per ton. Currently, the cyclohexane market is mainly characterized by narrow fluctuations, with weak demand suppressing any upward movement.
2. Market Analysis
Supply side: The quotation for low-sulfur primary coking coal from the producing areas in China remains stable at a high level of 1,850 CNY per ton. The profit for coke plants is only 21 CNY per ton of coke processed, approaching the break-even point. Coke enterprises have a very low willingness to actively reduce prices and sell, as there is a cost floor for the spot market. The expectation of negative feedback during the traditional off-season for steel has increased, and steel mills continue to resist high-priced raw materials, limiting the further increase in the price of coke. After multiple rounds of price increases, there is no expectation for a new round of price hikes.
In terms of costs: Upstream pure benzene has been consolidating at a weaker level this week, with diminishing cost support. Manufacturers’ profit margins are shrinking, reducing their incentive to hold prices steady, and previously high-priced supplies continue to decline.
Market sentiment: The market first declined and then stabilized this week. Traders focused on inventory clearance, while downstream players observed and waited for lower prices. Trading activity was light, with most transactions being small orders to meet immediate needs, and no large orders were placed.
III. Future Market Forecast
The cyclohexane analyst believes that, with ample supply, a weak demand season, and no significant rebound in costs, cyclohexane prices are likely to fluctuate narrowly and remain relatively weak in the short term, lacking strong momentum for a substantial increase. If pure benzene stabilizes after stopping its decline, the spot price may continue to trade sideways within the current range of 6,000 to 6,900.
