Price trend
According to data monitored by SunSirs, as of April 24, the average domestic market price for premium industrial-grade cyclohexane stood at 7,516 RMB/ton. During the first ten days of April, cyclohexane market prices exhibited a relatively stable trend; due to a relatively balanced supply-demand dynamic, price fluctuations remained minimal. However, entering the middle of the month, influenced by fluctuations in international crude oil prices and plant maintenance shutdowns in certain regions, cyclohexane prices began to show signs of rising. Some enterprises raised their ex-factory prices for cyclohexane, with increases ranging from approximately 100 to 200 RMB/ton. By the latter part of the month, as market supply gradually recovered and downstream demand growth lost momentum, the upward trend in prices slowed down; in some regions, prices even experienced a slight correction.
Market Analysis
Market Overview: In April, overall trading activity in the cyclohexane market was moderate. During the initial phase of price appreciation, traders and downstream enterprises demonstrated increased purchasing enthusiasm, leading to a rise in market transaction volumes. However, as prices continued their upward trend, downstream enterprises began to adopt a cautious stance toward high-priced cyclohexane; consequently, their procurement volumes gradually declined, and some smaller downstream firms even scaled back their production operations to mitigate the pressure of rising costs.
Regarding demand: Nylon is one of the primary downstream products of cyclohexane. In April, overall demand within the nylon industry was lackluster; although operating rates at nylon production facilities in certain regions saw some improvement, demand growth in the end-user market remained sluggish, resulting in significant pressure from product inventory. Consequently, enterprises did not significantly increase their procurement of cyclohexane. To reduce costs, some companies began seeking alternative substitutes or optimizing their production processes, thereby reducing their consumption of cyclohexane. As for the solvent sector: while demand for cyclohexane in the solvent industry is typically relatively stable, it too experienced some impact during April. Due to increasingly stringent environmental regulations, certain solvent manufacturers faced heightened environmental compliance pressures, leading to restrictions on their production scales and a subsequent decline in their demand for cyclohexane. Furthermore, competition from other solvent products in the market also exerted a certain degree of downward pressure on the demand for cyclohexane.
Production Overview: In April, the overall operating rate among domestic cyclohexane producers experienced some fluctuation. During the first ten days of the month, production units at several companies operated normally, resulting in relatively stable market supply. However, starting in the middle of the month, a number of companies undertook unit maintenance, leading to a reduction in market supply. For instance, a major cyclohexane producer in the East China region conducted a 10-day maintenance shutdown, causing a certain degree of tightness in the regional supply of cyclohexane. By the latter part of the month, as the units undergoing maintenance gradually resumed production, market supply conditions began to ease.
Market outlook
According to analysts at SunSirs, cyclohexane prices are likely to continue exhibiting a volatile trend in the short term. If the price of the raw material—benzene—continues to rise, production costs for cyclohexane will increase further, creating potential for continued price appreciation; however, should downstream demand remain sluggish while market supply gradually expands, prices may face downward correction pressure.
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