Price trend
According to data monitored by SunSirs, as of May 21, the average domestic price for premium industrial-grade cyclohexane stood at 7,383 RMB/ton. as of May 21, cyclohexane prices were trading within a narrow range, with weak demand curbing any upward momentum.
Market Analysis
Market Overview: End-user rigid demand remained somewhat weak, with procurement driven primarily by immediate necessity. Downstream sectors—specifically caprolactam and adipic acid—were maintaining operating rates between 70% and 75%; however, they faced a shortage of orders. While rigid demand remained stable, there was no incremental growth. Downstream players continued to adhere to a strategy of low inventory and strictly needs-based purchasing, showing resistance to high prices. Consequently, bulk transactions were scarce, and traders were adopting a strong wait-and-see stance. Given that the nylon and chemical fiber industries were currently in their off-season, textile demand was sluggish; this weakness had filtered upstream to the cyclohexane segment, leaving the demand side without any significant impetus for recovery.
Supply Side: Plant operations remained stable, and spot supply was ample. The average operating rate for domestic cyclohexane facilities stood at 75%–80%; major producers such as Luxi and Hengsheng were running at full capacity, ensuring a stable and abundant supply. Corporate inventories range from moderate to high, while stocks at East China ports total approximately 12,000 tons, leading to gradually mounting pressure on shipments.
Regarding costs: Benzene prices have weakened, causing cost support to loosen. The key feedstock—benzene—has been in a continuous downward trend since May; as of today, the price of benzene in Shandong stands at 6,800 RMB/ton, marking a monthly decline of over 5%. Consequently, the production cost for cyclohexane has shifted lower. With benzene prices softening, the gross profit margin for cyclohexane has recovered to the range of 800–1,000 RMB/ton. However, manufacturers lack the confidence to firmly hold prices and have become less inclined to sell at high levels. Given the time lag inherent in the transmission of falling feedstock costs to the spot market, prices are expected to remain in a stalemate in the short term, though they may face continued downward pressure in the future, tracking the trajectory of benzene prices.
Market Outlook
According to analysts at SunSirs, the cyclohexane market currently lacks upward momentum in the short term. With insufficient downstream demand and a lack of support from upstream cost factors, prices are expected to fluctuate within a narrow range.
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