Price trend

From March 1st to 5th, the Shandong cyclohexanone market saw continuous price increases, with the price center constantly adjusting towards higher levels. Major Shandong manufacturers raised prices by a cumulative 950 RMB/ton over the five days, driving the overall market price upward. On March 5th, the Shandong cyclohexanone market price was around 8,250-8,350 RMB/ton.

Analysis of core influencing factors

Geopolitical tensions drove up costs: The ongoing tensions in the Middle East and high international crude oil prices led to an increase in the prices of upstream raw materials such as benzene. Benzene is the main raw material for cyclohexanone, and the recent rise in benzene prices had provided cost support for cyclohexanone, pushing up the production cost of cyclohexanone and increasing companies' willingness to adjust prices.

Improved supply-demand transmission: Tight supply and recovering demand combined to drive up prices. As of March 5, some cyclohexanone plants entered their maintenance period in March, reducing effective market supply and keeping spot inventories at low levels. Coupled with the gradual recovery in demand from downstream industries such as chemical fibers and coatings, market expectations for a recovery in cyclohexanone demand had strengthened, boosting market confidence and shifting the market supply-demand balance towards a tighter position.

Market Outlook

As of March 5, supported by both costs and tight supply, cyclohexanone prices are expected to remain high in the short term, with the possibility of further slight increases. In the long term, close attention should be paid to the progress of new capacity coming online and the recovery of downstream demand. If supply-side pressure increases, prices may face downward pressure. 

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