Toward the onset of December 2024, the prices of Cyclohexane across Southeast Asia, particularly in the Chinese and European markets, showed divergent trends. In China, Cyclohexane prices reached historically low levels, recovering from a previous Benzene shortage at the ports. On the other hand, destocking activity continued in Europe, which improved supply availability and led to a sustained bearish market. European Cyclohexane suppliers focused on clearing inventories before the year-end to avoid tax implications and mitigate the risk of holding unsold stock that could lose value. As a result, they had no choice but to pass on the lower feedstock Benzene prices to customers, leading to a reduction in production costs.

Demand conditions for Cyclohexane across Europe remained unfavorable, especially from the paints and coatings industries and the caprolactam sector, as the ongoing downturn in the construction sector extended into December 2024. The Cyclohexane market activity in Europe was further muted due to extended holidays, contributing to weak demand. Additionally, port congestion at Rotterdam and Hamburg due to maintenance works added to the unfavorable conditions. Overall, Cyclohexane prices in Europe depreciated by approximately 2.2%, a trend supported by a 3% decrease in the price of Benzene, the primary feedstock, and the ongoing destocking activity.

In Southeast Asia, particularly in China, the price of Benzene witnessed an upward trend during early December 2024, rising by approximately 3.5%. This increase followed maintenance turnarounds in South Korean plants during late November, leading some Chinese suppliers to raise their Benzene prices. Production rates of Benzene across China remained moderate, with operating rates staying at 78%, though the operating rates of Benzene Dehydrogenating Units dropped from 77.2% to 76% on a weekly basis. This reduction in output resulted in a curtailment of Cyclohexane production in China, prompting suppliers to hold prices steady over the week.

Further support for higher Cyclohexane prices came from major players like Sinopec China and PetroChina Northeast Chemical Sales Company, which raised their Benzene prices by ¥150/MT, adding upward pressure to the cost of producing Cyclohexane. Despite these developments, demand conditions for Cyclohexane in China remained weak, with the construction sector continuing to perform poorly. This, in turn, dampened demand from the downstream paints and coatings industry, as well as from the caprolactam sector, where operating rates of caprolactam units declined from 87% to 86.3% in the first week of December 2024.

As the year drew to a close, Cyclohexane prices across the global market are expected to follow a downward trajectory, as ongoing destocking activities prevail. Market participants anticipate that demand conditions are unlikely to improve until next year, keeping the market under continued bearish pressure.