Price trend

According to data monitored by SunSirs, as of June 30th, the average price of domestic industrial grade high-quality cyclohexane was 7,333 RMB/ton. In June, the cyclohexane market operated weakly and steadily, with a slight decline in prices. As of June 30th, downstream demand was insufficient, and the driving force for price increases was weak. Replenishment was mainly based on demand, and the spot market supply was sufficient. In the short term, supply-demand balance is the main operation.

Analysis review

In June, the focus of negotiations in the domestic cyclohexane market remained stable and weaker, with weak downstream purchasing willingness and a focus on restocking as needed. The negotiation atmosphere was not positive. As of June 30th, cyclohexane inventory pressure was relatively high, with inventory running at a high level and sufficient spot supply. Market consumption was slow, with contract customers mainly purchasing for immediate needs, and downstream procurement lacking enthusiasm. The overall cyclohexane market was temporarily under pressure, with mainstream transaction prices concentrated around 7,400 RMB/ton. Last week, cyclohexane market prices were weak.

Upstream: In late June, domestic oil prices fell twice within the week, driving down the price of benzene. Sinopec's benzene prices were reduced by a total of 300 RMB/ton to 6,100 RMB/ton, lacking strong support on the cost side and facing loss pressure. Purchasing sentiment was significantly poor, downstream demand performance was poor, and industry players' wait-and-see attitude did not decrease. Purchasing accumulation was insufficient, and the benzene market operated weakly at the end of June. Spot prices in East China fell from 6,430 RMB/ton last week to around 6,000 RMB/ton, with cash withdrawals. Sinopec Chemical's sales of benzene were listed this week, with a slight drop of 300 RMB/ton to 6,100 RMB/ton, and cyclohexane cost support was insufficient.

Downstream: The downstream cyclohexanone market was running weakly, with a slight drop at the end of June. The East China market dropped from 7,550-7,700 RMB/ton last week to 7,500-7,600 RMB/ton in cash delivery. On June 27th, the cyclohexanone price in the South China region was 7,450 RMB/ton in delivery. In mid June, cyclohexanone in the Shandong region was running weakly in the South China market, with a lack of cost support and cautious follow-up of downstream orders. High priced shipments in the market were not smooth, and the transaction atmosphere was low. The overall cyclohexanone market in the East China region was mainly in a narrow downward trend in June, with cyclohexanone prices ranging from 7,450-7,550 RMB/ton.

Market outlook

The cyclohexane analyst from SunSirs believes that as of June 30th, the downstream demand for cyclohexane procurement was average, the upstream price lacked support, and the downstream trend was weak. It is expected that the cyclohexane market will be weaker narrowly in the short term.

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