Global Cyclopentane Prices stabilizes Amid Steady Demand and Fluctuating Feedstock Costs

The price of Cyclopentane in the global market experienced slow momentum during the first half of November 2024. The price of essential feedstock Benzene and Crude Oil kept fluctuating during this period but remained mostly on the downward side. This price decline prompted towards reduced production cost thus exerting downward pressure on Cyclopentane prices. This stability in pricing is primarily attributed to steady demand from downstream industries, which offset potential volatility, even amid ongoing trade uncertainties in the global market.

In the Indian market, Cyclopentane prices saw a notable surge during the first week of November 2024 before stabilizing in the following week. On the demand side, purchasing activity from the key refrigerant market remained steady, supported by heightened consumer spending during the major Indian festivals of Navratri and Diwali in October 2024. These festivals traditionally boost demand across multiple sectors, including refrigerants. However, with the festive season behind, traders anticipated a potential slowdown in end-user demand. To sustain market momentum, they opted to maintain stable Cyclopentane prices, aiming to attract additional orders and ensure continued market activity in the short term. On the supply side, the production of Cyclopentane within India remained consistent, underpinned by stable input costs and a modest recovery in domestic manufacturing activity. Conversely, the import sector faced significant logistical challenges, particularly at the Kattupalli Port in North Chennai. The recent implementation of a Terminal Operating System (TOS) has caused substantial delays, with export cargo vehicles experiencing unloading waits of up to three days and import container dwell times extending to 10 days. These disruptions, exacerbated by equipment shortages and staffing issues, have led to severe terminal congestion. The interplay of steady domestic supply, stable demand of Cyclopentane post-festivities, and logistical constraints has collectively shaped the Cyclopentane market dynamics in India, highlighting both resilience and vulnerabilities in the current trading environment.

In the North American market, Cyclopentane prices saw a modest decline, following a consistent decrease in the prices of key feedstocks, such as Benzene and Crude oil. This trend was primarily influenced by the strengthening US dollar, which impacted commodity prices, and growing concerns over a potential global supply glut in the coming year. While the festive season typically drives higher demand in the downstream refrigerant and blowing industries, the expected surge in procurement orders failed to materialize. This lack of substantial demand growth for Cyclopentane, coupled with the broader market uncertainties, contributed to the downward price movement and overall market stagnation.

ChemAnalyst predicts that Cyclopentane prices will rise in the coming months, driven by strong demand from downstream markets during the ongoing festive season.