Cyclopentane Prices Show Downward Trend Across the Globe Amidst Falling Demand

During the first half of September 2023, the global Cyclopentane market witnessed a price dip on a fortnightly basis in the global market. This fluctuation is mainly attributed to depreciating demand from the downstream refrigerant industry. However, the price of essential raw materials Benzene, Naphtha, and Crude Oil increased globally during the same period.

In the European market, Cyclopentane prices experienced a slight dip on a fortnightly basis. This price slump is mainly attributed to diminished demand for Cyclopentane from the end-user market. As the winter season is approaching, demand for Cyclopentane from the downstream refrigerant and freezer industry is depreciating slowly. Further, growing inflationary pressure and global economic slowdown have dampened the buying enthusiasm of the consumer. Additionally, amid growing inflationary pressure, Germany has reduced its exports, leading to stockpiled inventories.

During the initial weeks of September, the North American region started experiencing a decline marginally under the influence of the global price trend. Further, demand for Cyclopentane remained sluggish amidst the forthcoming winter season within the country. The potential threat of Hurricane Idalia prompted consumers to adopt a cautious approach when making bulk purchases. Interestingly, despite the hurricane's potential disruption along the Gulf Coast and in Florida, the production sector in the region managed to maintain a remarkable level of continuity during this period. Furthermore, the Bureau of Labor Statistics released data that revealed a noteworthy 0.6% uptick in the country's Consumer Price Index (CPI) in August 2023.

On the other hand, in the Asian market, the prices of Cyclopentane declined marginally in the same period. Cyclopentane prices plunged by 5.4% during the first half of September 2023. This decline is primarily attributed to the lackluster performance of the downstream foam manufacturing sector. Notably, some manufacturing units in China were operating at a decelerated rate. Furthermore, the sluggish global economic growth, declining international trade and investment, geopolitical uncertainties, and diminishing external demand continue to impact China's trade dynamics significantly. The demand for Cyclopentane from the downstream industries, such as refrigerant and freezer industries, showed inadequacy, procurement practices adopted a more cautious approach, and market transactions predominantly occurred at reduced price levels.

The price of Cyclopentane is anticipated to increase in the forthcoming months. Amidst production cuts by OPEC+ countries and Saudi Arabia, the price of vital upstream Crude Oil may rise further. These elevated upstream prices, in turn, may lead to a potential shift in prices of many downstream derivative products, including Cyclopentane.