The Cyclohexanone Price Increased Stably on Tight Supply

Introduction

In December, the cyclohexanone price ran upwards. Why did the cyclohexanone price stop decreasing and begin to rebound?

Production Cost

As the oil prices increased, the international benzene market continued increasing. The benzene price in Sinopec increased to RMB 7,000/mt, and the transaction price reached RMB 7,200/mt, which supported the Chinese cyclohexanone market. In the future, the Chinese Benzene market will continue to increase, which can support cyclohexanone market strongly.

Demand

Part of new fiber units started to operate earlier than units in downstream industries, which promoted the consumption of cyclohexanone. With the caprolactam (CPL) units restarted, the demand for the demand for cyclohexanone from fiber industry increased again. The supply of cyclohexanone became tight in the sport market. The demand for cyclohexanone in solvent market was flat. However, as the overall supply was insufficient, the cyclohexanone producers felt confident to the market and increased offers. So, the tight supply provided a chance for cyclohexanone prices to run upwards.

Profit

Up to December 11, the unsettled price of Chinese benzene in Sinopec was RMB 7,000/mt. The ex-works price of cyclohexanone was RMB 12,400 in cash. The profit of cyclohexanone producers was about RMB 3,000/mt, which was optimistic. As a result, the producers held strong sentiment to the market and insisted to provide high price.

In general, the profit was higher than it in former year. The main reason is that the overall supply-demand in cyclohexanone market changed greatly. With the tight supply and high demand, the cyclohexanone market ran firmly. It is predicted that the Chinese cyclohexanone market will remain strong in short term.