Price trend

According to data monitored by SunSirs, as of April 29, the average domestic market price for premium-grade industrial cyclohexane stood at 7,516 RMB/ton. Over the past week, the cyclohexane market exhibited a volatile downward trend; while the average market price remained within a relatively stable range at the beginning of the week, prices gradually declined as market supply-and-demand dynamics shifted. By the end of the week, mainstream market prices for cyclohexane had fallen by approximately 200 to 300 RMB/ton compared to the start of the week. Price performance varied across different regions: the East China region—a major hub for cyclohexane consumption and trade—experienced a relatively larger decline in prices, whereas prices in the North China region remained comparatively firm, albeit with a certain degree of downward adjustment.

Market analysis

Market Overview: In April, overall trading activity in the cyclohexane market was moderate. During the initial phase of price increases, traders and downstream enterprises showed heightened purchasing enthusiasm, leading to an uptick 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 cope with the pressure of rising costs.

Regarding Demand: The Solvent Industry—Demand for cyclohexane within the solvent sector has also declined. As environmental regulations become more stringent, some solvent manufacturers have begun seeking alternative products, thereby reducing their consumption of cyclohexane. Concurrently, intense market competition has driven down the prices of solvent products; this has squeezed corporate profit margins, further dampening the demand for cyclohexane.

Production Status: Last week, the overall operating rate among domestic cyclohexane producers remained at a high level. With the resumption of production at several facilities that had previously undergone maintenance, market supply increased further. Operating rates at some large-scale enterprises were sustained at over 80%, resulting in continued mounting pressure on market supply.

Market Outlook

According to an analyst at SunSirs specializing in cyclohexane, the market situation of oversupply is unlikely to change in the short term, nor is downstream demand expected to see any significant improvement within this timeframe. Should the price of the raw material—benzene—continue to decline, thereby further lowering production costs for cyclohexane, prices for the latter are likely to continue their downward trend.

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