SunSir: Cyclohexanone Market Narrowly Declined

Price trend

According to the Commodity Market Analysis System of SunSirs, from August 28th to September 1st, the average market price of cyclohexanone in China dropped from 9,700 RMB/ton to 9,650 RMB/ton, with a decrease of 0.52% during the cycle and a year-on-year increase of 1.05% in price. The raw material pure benzene market continued to be high, and the cost pressure was on the high side, which had slightly reduced the impact on the operation of production enterprises' devices. Downstream procurement was more on demand, with a market mentality of watching mainly.

Analysis review

On the cost side, the raw material pure benzene, the domestic pure benzene market continued to be on the high side. The rise in crude oil boosted market confidence, and the Shandong refinery's quotation had steadily risen. Downstream and traders had actively followed suit within the day, and the transaction was still acceptable. In the cost composition of the traditional cyclohexanone process route, pure benzene accounted for 53%. The market trend of pure benzene directly affected the price of cyclohexanone, and the short-term cost of cyclohexanone was positive for the market.

On the supply side, according to the Commodity Market Analysis System of SunSirs, the domestic production capacity of cyclohexanone was about 6.55 million tons, and the operating load was around 60%, which was at a relatively low level. The main production enterprises include Shijiazhuang Coking, Shandong Hongda, Jining Zhongyin, Shandong Haili, and Jiangsu Haili for equipment maintenance, with limited product supply. The short-term supply of cyclohexanone was positive for the market.

On the demand side, cyclohexanone units are mainly equipped with downstream CPL production, and CPL is one of the main downstream sources of cyclohexanone. The CPL market was undergoing consolidation and operation, with downstream procurement on demand, and the price center was temporarily stable. The demand side for cyclohexanone was temporarily bearish.

Market outlook

From a cost perspective, the high prices of raw materials did not reduce the cost pressure. The supply and demand cyclohexanone commodity volume gamed. SunSirs’ cyclohexanone analysts predict that the short-term domestic cyclohexanone market situation will be mainly sorted out.

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