Global Cyclohexanone Prices Maintain Stability, Turbulence Observe in Southeast Asia

The prices of Cyclohexanone, an important building block for the synthesis of a variety of organic compounds, have been seen to maintain its stability globally in the week ending September 29. At the same time, parts of Southeast Asia, such as South Korea and Thailand, have shown some turbulency in the Cyclohexanone market driven by high production costs amid sluggish economic growth.

In China, Cyclohexanone prices have been on a little downtrend due to declining upstream market prices. The downstream Caprolactum market has also not witnessed any defending role since ample inventory has already been ensured before the National Holiday season. On September 29, Cyclohexanone prices hovered around 1385 per metric tonne, FOB Qingdao, China. India’s Cyclohexanone market has become stagnant at USD 1682.37 per metric tonne price in the week ending September 29 after witnessing a turbulency last week. Demand-driven stockpile and drop in international Brent crude prices have been probably the reason behind that calmness. The Upstream Phenol and Benzene market did not have much support that week.

The Cyclohexanone market in the Eurozone has started moving upward at a slower rate, as prices registered on September 29. Cyclohexanone has been trading within a price range between USD 1800-1900 per metric tonne in European territories.

European Central Bank’s Strategy against rising prices has been successful, as indicated by the low inflation number in September. Consumer prices have been moving at their slowest pace since October 2021, increasing by 4.2 percent in September this year, down from 5.6 percent last month, as reported by the European Commission. However, the European market has tumbled on upcoming rate interest concerns. Hiring activity in Germany’s manufacturing sectors has reflected its lowest level since February 2021, since the country has struggled with an energy crisis and surging borrowing costs.

South Korea’s inflation reached a five-month high in September, expecting the Central Bank to keep its interest rate unchanged. Export volume also has seen a downfall in Asia’s fourth-largest economy in September. Moreover, higher energy prices have supported the Cyclohexanone prices to rise. In Thailand, prices of Cyclohexanone have been closed at 1460 per metric tonne, CFR Bangkok.

Cyclohexanone has been trading at USD 1620 per metric tonne in North American markets, FOB Texas. US Treasury bond yields remained lofty for investors, reaching the highest since 2007. Meanwhile, the possibility of a higher rate hike by the US Federal in the next meeting in October has raised market concerns about higher lending costs. Moreover, shrinking real disposable income has indicated a future drop in consumer spending, which might result in a downtrend in the clothing market in the coming months and, hence, might affect Cyclohexanone-producing industries.