Supply-Demand Equilibrium Prevails, Cyclohexanone Prices Hold Steady in Germany and the Netherlands

Hamburg (Germany): During the first week of May 2024, both the German and Dutch markets for Cyclohexanone remained stable and balanced, indicating a robust equilibrium between supply and demand. Despite seasonal fluctuations, particularly noticeable in sectors like paint and coatings production, both markets demonstrated resilience, sustaining steady trends in the prices.

In Germany, the Cyclohexanone market exhibited equilibrium between demand and supply. Production facilities in Germany and neighboring countries like the Netherlands operated consistently, ensuring a sufficient and steady supply of Cyclohexanone. Effective inventory management practices by manufacturers and distributors prevented oversupply, thereby averting any potential price fluctuations. Stable benzene prices, a critical raw material, further supported price stability in the German market. Additionally, regular exports to neighboring countries such as the Netherlands, Belgium, and the Czech Republic ensured a consistent supply level without major disruptions. Stable freight costs also played a role in maintaining overall delivered prices for imported Cyclohexanone. Despite the broader economic challenges indicated by the final euro zone manufacturing Purchasing Managers' Index (PMI) for April, which declined to 45.7, the German market for Cyclohexanone remained resilient.

Similarly, in the Dutch market, a balance between demand and supply was maintained during the first week of May. Production facilities in the Netherlands and neighboring countries like Germany operated consistently, providing ample supply of Cyclohexanone. Effective inventory management by manufacturers and distributors ensured stable market conditions, preventing oversupply and overt price fluctuations in the domestic market. The stability of benzene prices, a key raw material, further supported stable Cyclohexanone prices in the Dutch market. Regular imports from neighboring countries such as Germany, the UK, and the Russian Federation maintained a healthy supply level without significant disruptions.

Both markets experienced a moderate level of demand during this period. Stable production levels in downstream industries, particularly in adipic acid manufacturing, contributed to steady demand for Cyclohexanone. However, seasonal fluctuations, such as reduced demand in certain applications like paint production, were observed. Despite these variations, the overall demand remained relatively stable, indicating resilience in the Cyclohexanone sector.

Looking ahead, the forecasted price trend for Cyclohexanone in both Germany and the Netherlands suggests a slight increase in prices throughout May, followed by moderate growth in June and July 2024. Factors such as increased demand from international markets and limited availability of raw materials may contribute to upward pressure on prices. Additionally, strong prices of feedstock and an improvement in global demand are expected to support firm prices while energy prices are expected to increase resulting in firm cost of production.