Cyclohexane Prices Show Upward Trend in German Market Amid Raw Material Cost Increase

The price of Cyclohexane has exhibited an upward trend for the past few weeks in the German market due to the high-cost support from the raw material benzene and the limited availability of the product. Enterprises have noted that the customers from the downstream solvent, construction, and textile industries are more cautious in purchasing the material, opting to acquire the product only on a need basis. Additionally, the upstream raw material benzene remained strong in the Eurozone with a notable increase of 8%, which had an impact on downstream derivative industries, including the production of Cyclohexane.

On the demand side, the downstream industries have shown limited movement over the past few days, indicating no significant notable improvement in demand from the textiles, construction, and other allied sectors. The primary factor attributing to the price increases in the Cyclohexane market is the sharp incline in the raw material costs.

On the other hand, Cyclohexane in the Chinese market has maintained a strong price pattern in recent days, which is mainly attributed to the robust raw material prices in the domestic market. Notably, benzene prices rose by 8.2% in mid-September, significantly impacting the various downstream derivative industries within the Chinese market. After a calm oil price in August with a volatile market, the decisions by Saudi and Russia in early September to extend the oil output cuts triggered the oil price spike and impacted the overall petrochemical industry.

The Cyclohexane manufacturers maintained a quotation at a higher level, and the operating rate was stable in the Chinese market. Further, the downstream procurement sentiment was mainly based on the demand, and the negotiation environment remained flat over the first half of September.

According to ChemAnalyst, the price of Cyclohexane was hovered around USD 1008/MT on a FOB Shanghai basis with a weekly inclination of 3.3% during mid-September 2023.

The price of Cyclohexane could experience an upward pressure in both regions. This expectation is mainly attributed to the ongoing and consistent rise in the cost of raw materials and crude oil prices within the market. In recent days, international crude oil prices have risen due to the declining global inventories in a market that has been tightening owing to the production cut by OPEC+ countries and Saudi Arabia. Such production cuts often result in higher oil prices. These elevated oil prices, in turn, can have a cascading effect on various derivative products, including Cyclohexane.