SunSirs: The Cyclohexane Market Was Mainly Stable (June 20-27)

Price trend

According to data monitored by SunSirs, as of June 27th, the average price of domestic industrial grade high-quality cyclohexane was 7,333 RMB/ton. Last week, the cyclohexane market was operating steadily with little price fluctuation. Downstream demand was insufficient, and the driving force for price increases wa weak. Demand replenishment was the main focus, and the spot market supply was sufficient. In the short term, supply-demand balance was the main operation.

Analysis review

The focus of negotiations in the domestic cyclohexane market was stable, and downstream purchasing willingness was not strong. Replenishment was mainly on demand, and the negotiation atmosphere was not positive. As of June 27th, cyclohexane inventory pressure was relatively high, inventory was running at a high level, spot supply was sufficient, market consumption was slow, and contract customers were mainly in urgent need of procurement. Downstream procurement lacked enthusiasm, and the overall cyclohexane market was under pressure. The mainstream transaction price was temporarily concentrated at around 7,400 RMB/ton, and the cyclohexane market price was weak last week.

Upstream: Two domestic oil price drops within the week have driven down the price of benzene. Sinopec's benzene price has been reduced by a total of 300 RMB/ton to 6,100 RMB/ton, lacking strong support on the cost side and facing loss pressure. The purchasing sentiment was significantly poor, and downstream demand was not performing well. The wait-and-see attitude of industry players was not decreasing, and the purchasing accumulation was insufficient. As of June 27th, the benzene market in East China was operating in a stalemate, and the price in Shandong market had significantly fallen. The overall market atmosphere was poor, and the market and industry operations were cautious.

Downstream: On June 27th, the price of cyclohexanone in the South China region was 7,450 RMB/ton, and it was delivered to the Shandong region. The cyclohexanone in the South China market was weak and lacked support in terms of cost. Downstream orders were followed cautiously, and high priced shipments in the market were not smooth, resulting in a trading atmosphere. The cyclohexanone in the East China region was 7,450-7,550 RMB/ton. On June 27th, the cyclohexanone in the East China market was weak and benzene was fluctuating.

Market outlook

The cyclohexane analyst from SunSirs believes that the downstream demand for cyclohexane was temporarily average, with slow shipments and high inventory pressure. It is expected that the short-term upward momentum of the cyclohexane market will be insufficient, and prices will maintain their current trend.

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