For the Quarter Ending September 2024
North America
In Q3 2024, the North American Cyclohexanone market experienced a mixed pricing trend. A period of declining prices was observed during the first half of the quarter, primarily driven by subdued demand across various industries. Factors such as a seasonal slowdown in downstream sectors like nylon production and adipic acid manufacturing significantly impacted market prices. Additionally, stable domestic production levels led to a surplus, further pushing prices downward. Stability in key raw material prices, particularly benzene, played a crucial role in reducing production costs and facilitating lower selling prices for Cyclohexanone.
During the second half of Q3 2024, Cyclohexanone prices in the USA exhibited an upward trend. Stabilized demand from downstream industries like nylon and adipic acid production, coupled with production constraints and stable benzene prices, contributed to the price rise during this period. By mid-September, prices rose due to heightened procurement activity and inventory replenishment after destocking. Additionally, exports to countries like Israel and Ireland tightened domestic supply, while concerns over port congestion due to a potential ILA strike added further upward pressure on prices.
There was only a 1% change observed from the last quarter compared to this quarter. Moreover, the comparison between the first and second halves of the quarter indicated a further decrease of -1%. This environment culminated in a quarter-ending price of USD 1614/MT for Cyclohexanone FOB Texas in the USA.
Europe
In Q3 2024, the European Cyclohexanone market experienced a hybrid pricing trend. The first half of the quarter saw a decline in prices, primarily driven by a temporary slowdown in downstream industries such as nylon, adipic acid, and caprolactam production, which led to reduced demand and created a market surplus. Increased domestic production and inventory adjustments further contributed to the price drop. Additionally, the overall economic slowdown in Europe aligned with global trends of falling prices. However, stabilized prices were observed towards the end of the quarter in the Netherlands, where balanced supply and demand dynamics prevailed. Consistent imports from Belgium and Germany ensured adequate supply, while a slight decline in benzene prices helped maintain production costs. Seasonal slowdowns in downstream applications like adipic acid and nylon tempered demand, preventing significant price fluctuations. Effective inventory management among manufacturers also reduced stockpiles, contributing to price stability. Despite global port congestion challenges, these factors collectively supported a steady pricing environment. Within the region, the Netherlands experienced the most significant price changes, with an 8% decline from the previous quarter. Additionally, there was a 3% decrease in prices between the first and second half of the quarter. The latest quarter-ending price for Cyclohexanone FD Rotterdam in the Netherlands stood at USD 1848/MT, reflecting a consistently decreasing pricing environment.
APAC
In Q3 2024, the APAC region witnessed a significant increase in Cyclohexanone prices, driven by multiple factors. Demand from downstream industries, such as nylon, adipic acid, and caprolactam production, remained strong, leading to heightened consumption levels. Concurrently, supply constraints, including unexpected production issues and maintenance shutdowns, created temporary market fluctuations. In Japan, Cyclohexanone prices increased primarily due to rising benzene costs, which escalated production expenses, while inventory depletion among manufacturers heightened reliance on spot purchases. Additionally, port congestion in Japan significantly impacted Cyclohexanone prices, as logistical delays strained supply chains and tightened domestic supply. Although some easing of congestion was noted, ongoing capacity constraints and vessel redistribution to alternative ports, like Taiwan, continued to create disruptions. This situation further drove up prices amid existing demand pressures. The substantial 22% rise from the previous quarter in 2024 underscored the market's volatility, with Japan experiencing the most significant price changes that reflected overall regional trends. Seasonal fluctuations, coupled with a 7% price disparity between the first and second halves of the quarter, highlighted the dynamic nature of the market. The quarter-ending price of USD 1463/MT for Cyclohexanone FOB Osaka in Japan exemplified the prevailing upward pricing trajectory in the region.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Cyclohexanone market experienced a notable increase in prices, driven by several critical factors. The quarter was characterized by heightened demand from key downstream industries such as nylon production, adipic acid, and caprolactam manufacturing. This increased demand was compounded by stable benzene prices, which prevented significant cost hikes for Cyclohexanone producers, maintaining a steady supply without major disruptions. Additionally, effective inventory management and balanced import-export volumes further supported market stability, avoiding any significant price volatility.
Focusing on the USA, which witnessed the most pronounced price changes, overall trends reflected a consistent upward trajectory. Seasonality played a crucial role, with heightened demand typically observed in Q2 due to increased production needs in various sectors. The correlation in price changes was evident as the demand for nylon and related products surged, pushing Cyclohexanone prices higher. This quarter's prices were still 3% lower than the previous quarter of 2024, indicating some volatility and adjustment in market dynamics.
The comparison between the first and second half of the quarter showed a 4% price increase, underscoring the steady demand and supply balance. The quarter-ending price for Cyclohexanone in the USA was recorded at USD 1616/MT FOB Texas, signifying a positive pricing environment. Overall, Q2 2024 has been marked by a stable yet increasing price sentiment, driven by consistent industrial demand and stable production costs, reflecting a positive outlook for the Cyclohexanone market in North America.
Europe
In Q2 2024, Europe witnessed a significant increase in cyclohexanone prices, driven by a confluence of factors. A prominent driver was the robust demand from downstream industries, including nylon and caprolactam manufacturing, which remained strong throughout the quarter. This demand surge was exacerbated by supply chain disruptions, notably due to limited availability of key feedstock benzene and intermittent production halts across various European facilities. Additionally, the cost of raw materials experienced an upward trend, influenced by the global fluctuations in crude oil prices and logistical challenges, further inflating production costs. The market also contended with inflationary pressures and increased freight rates, contributing collectively to the price escalation.
Focusing exclusively on Germany, the country experienced the most pronounced price changes within the region. From the previous quarter in 2024, prices climbed by 7%, indicating a continued upward trajectory. Seasonality played a role, with heightened industrial activity in warmer months driving demand. Moreover, the correlation in price changes was evident, with a 4% price increase observed between the first and second half of the quarter. This steady price rise culminated in a quarter-ending price of USD 2090/MT of cyclohexanone FD Hamburg, underscoring a positive pricing environment. Overall, the quarter’s pricing dynamics were heavily influenced by sustained demand, supply constraints, and global economic conditions, reflecting an overall positive sentiment in the pricing environment.
APAC
The second quarter of 2024 exhibited mixed trends in Cyclohexanone prices across the APAC region. Initially, prices declined in the first half of the quarter, particularly in Japan, due to persistent factors from March. Limited seasonal demand increases, especially in adipic acid production, and high inventory levels among downstream industries kept overall demand subdued. Stable to decreased raw material and energy costs further reduced production expenses, allowing domestic producers to maintain lower selling prices. Despite stable production levels, a supply surplus persisted due to high import volumes and low export opportunities amid increased regional competition. This combination of factors maintained downward pressure on Cyclohexanone prices.
Towards the end of Q2, heightened demand from downstream industries such as nylon production, adipic acid, and caprolactam, driven by robust industrial growth and increased manufacturing activity, was witnessed. Rising feedstock costs, particularly benzene, and fluctuating natural gas prices exacerbated production expenses, leading to higher selling prices. Export opportunities to markets like South Korea and Taipei incentivized producers to prioritize exports over domestic supply, contributing to tighter local inventories and upward price pressures.
From the previous quarter in 2024, prices saw a slight decline of 5%, indicating a transient easing before the current escalation. Within this quarter, prices increased by 1% from the first to the second half, highlighting a consistent rising trend. The quarter-ending price stood at USD 1195/MT FOB Osaka.
The pricing environment in Japan has been notably positive, driven by strong market fundamentals and external pressures towards the end of the quarter with the start of declining prices. Despite brief fluctuations, the overall sentiment remained mixed, reflecting sustained demand and constrained supply dynamics.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the North American Cyclohexanone market witnessed a dynamic pricing trajectory, marked by distinct trends each month. Initially, in January, prices declined due to subdued demand from key sectors like paints & coatings and nylon, coupled with oversupply stemming from heightened production capacity and lower raw material costs.
However, February brought about price stabilization amidst supply chain disruptions and more favorable natural gas prices. Yet, March saw a notable downturn in prices, driven by factors such as stable upstream material costs, shifts in global petrochemical dynamics, and intensified competition among suppliers due to oversupply.
Various challenges, including fluctuations in raw material costs, disruptions in vessel traffic, and weakening demand from downstream industries, further contributed to the overall decline. Despite efforts to bolster domestic production, persistent issues in upstream product prices and a 4.1% drop in adipic acid prices underscored the market's vulnerability, ultimately influencing the observed downturn in Cyclohexanone prices in the USA.
As the quarter concluded, prices stood at USD 1616/MT in USA , reflecting the market's resilience amidst fluctuating conditions, yet highlighting the need for continued vigilance and adaptability in navigating future challenges.
APAC
The pricing environment for Cyclohexanone in the APAC region during Q1 2024 has been relatively stable, with some minor fluctuations in certain countries. Several factors have influenced market prices, including demand from downstream industries, supply levels, raw material costs, and global economic conditions. Overall, the market has seen a moderate to high supply of Cyclohexanone, resulting in stable or slightly declining prices. Demand from downstream industries, such as textiles, automotive, and chemical manufacturing, has been moderate. However, the off-season lull in these industries has limited the overall demand for Cyclohexanone. Additionally, reduced demand from major consuming countries, such as China, has contributed to the stability in prices.
In Japan, there have been noticeable price changes for Cyclohexanone during Q1 2024. The market has experienced a slight decline in prices, influenced by factors such as reduced demand from the textile industry, increased domestic production, and lower feedstock costs. The off-season lull in the textile industry has resulted in decreased demand for Cyclohexanone, impacting prices. However, the overall pricing environment has remained relatively stable, with minor fluctuations.
Looking at the price trends over the quarter, there has been a slight decline in prices compared to the same quarter last year. However, the percentage change from the previous quarter in 2024 has remained stable. The price comparison between the first and second half of the quarter shows no significant difference.
As of the end of the quarter, the price of Cyclohexanone in Japan was USD 1190/MT, FOB Osaka. Overall, the pricing environment for Cyclohexanone in Japan during Q1 2024 can be described as stable, with minor fluctuations influenced by seasonal demand patterns and supply dynamics.
Europe
The first quarter of 2024 presented a volatile period for Cyclohexanone prices in Europe, characterized by various influencing factors. Initially, January witnessed a decline in prices due to weak demand from key sectors like construction and paints & coatings, alongside an oversupply from accumulated inventories. However, February and March showed an incline in prices driven by stable demand and rising production costs, particularly influenced by higher prices of upstream raw materials like benzene. Despite stable benzene prices, oversupply remained a challenge for manufacturers, highlighting the delicate balance between supply and demand in the Dutch petrochemical industry.
The surge in demand from downstream industries, coupled with rising production costs, led to continuous price increases throughout the quarter in the Dutch market. Additionally, challenges in transportation routes and elevated crude oil prices further impacted upstream benzene prices, contributing to the overall price uptrend. Manufacturers responded by raising prices to maintain profit margins amidst constrained supply and subdued demand from downstream construction industries.
The quarter-ending price in the Netherlands is USD 1970 per MT of Cyclohexanone FD Rotterdam. Overall, the first quarter showcased a mixed pricing trend for Cyclohexanone in Europe, with initial declines followed by inclines, underscoring the market's sensitivity to various economic and industry-specific factors.
For the Quarter Ending December 2023
North America
The North American Cyclohexanone market has witnessed a bearish trend in Q4 2023, primarily due to the expected restrictions on vessels' transition through the Neopanamax locks, which have hampered the supply chain. Furthermore, the reducing domestic petrochemical production capacity and overseas supplier inventory due to oil production cuts by major producers have also affected the prices.
The limited inventory of Cyclohexanone in the domestic market has led to further price hikes, while decreasing downstream demand has supported a price drop. The recent visit of US President Joe Biden to Vietnam and the upgrade of bilateral relations between the two nations have opened up new growth opportunities in the textile industry, particularly in garment exports.
The last quarter of 2023 has seen the shutdown of Shell Chemicals Acetone and Phenol solvent unit in Deer Park, Texas, US. The reduced stockpile in the US has caused higher imports of commodities from various countries. The latest price of Cyclohexanone DEL Texas in the USA for Q4 2023 has been USD 1598/MT.
APAC
The fourth quarter of 2023 has been a challenging period for the Cyclohexanone market in the APAC region. Several factors have influenced the market and prices during this quarter. Firstly, the destocking tendency of manufacturing stores has led to a drop in prices. Additionally, freight rates have increased, impacting shipment costs. Furthermore, the reduction in domestic petrochemical production capacity and overseas supplier inventory due to oil production cuts by major producers have also affected prices. During this quarter, there have been no reported plant shutdowns in the region. Among the countries in the APAC region, Japan has experienced significant price changes for Cyclohexanone. The price trend in Japan has followed a downward trajectory, with a 4% decrease compared to the same quarter of the previous year. The price has also decreased by 2% compared to the previous quarter. However, there has been no significant price difference between the first and second half of the quarter in Japan. In conclusion, the Cyclohexanone market in the APAC region has faced challenges in the fourth quarter of 2023. Factors such as destocking, increased freight rates, and reduced petrochemical production capacity have influenced prices. Japan has experienced a decline in prices compared to the previous year and the previous quarter. The quarter-ending price for Cyclohexanone-FOB Osaka in Japan has been USD 1254/MT.
Europe
The current quarter of 2023 (Q4) for Cyclohexanone in the Europe region has witnessed a bearish market due to several factors. The destocking tendency of manufacturing stores has led to a drop in prices, whereas the potential increase in freight rates could support shipment costs. The reduced domestic petrochemical production capacity and overseas supplier inventory due to oil production cuts by major producers have also affected prices. In the Netherlands, Cyclohexanone FD Rotterdam has seen a decline of 1.9% in prices in December but has witnessed an increase of 1.1% and 2.2% in January and February, respectively. The moderate supply in the market, due to several upstream production plants undergoing maintenance in October, has dented the supply chain. However, the new year production plans might lead to an increase in overseas demand. The downstream biofuel industry might support a price hike of ethanol, and energy prices might ease as overseas supply is expected to increase. The Dutch textile industry has experienced contraction for a year but has been trotting back to normal, having got rid of inventory pileup. In November, apparel exports grew 27% compared to October on the back of higher demands for apparels in the West as the festival season has already set in Bangladesh's major export destinations. Therefore, the current quarter of 2023 has been challenging for Cyclohexanone in the Europe region. The latest/quarter-ending price of Cyclohexanone FD Rotterdam in the Netherlands has been USD 1872 per MT.
For the Quarter Ending September 2023
North America
Q3 front month Cyclohexanone prices in the North American market have continued to follow the bearish trend of last quarter. The regional manufacturers have run their operations actively due to positive market sentiments for future demand. Overall, the supply chain has performed well without any bottlenecks. Inquiries from downstream paints and adhesive industries have been reported as active. The market transactions have started gaining speed. However, from August, Cyclohexanone prices have started showing improvements due to increased production costs supported by inclined energy costs and surging upstream benzene prices. Moreover, the crude production cut announcement from OPEC+ has excited the crude oil market, which further has caused price hikes of petrochemical products such as paraxylene. Overall, the demand from the American market has been on the higher side from various downstream sectors. In the second half, Crude oil inventories have declined due to consistent demand and a drop in the U.S. oil rig count. However, U.S. production of crude oil has reported steady growth, indicating strengthened demand. Moreover, the supply of phenol from one of its major seller markets, China, has been dented since several plants have been going through maintenance shutdowns or unplanned stoppages have occurred in Chinese manufacturing industries. Although the risk of an economic slowdown and one more interest rate hike by the Federal Reserve have elevated marketers’ concerns. Thus, on September 29, Cyclohexanone prices closed at USD 1604, FOB Texas.
APAC
Front month Cyclohexanone prices of the third quarter have shown quite stability since rising production costs have been balanced by strong downstream demand. As per market reporters, manufacturing units' operating rates have been stable throughout the month of July. The lucrative demand for technical textiles with resistance and durability has been the major driver. Moreover, the Purchasing Manager Index of India reported a slight fall to 57.7 in July from 57.8 in June. The month of August witnessed slow but steady growth. In China, due to ample domestic inventory of Caprolactum, the downstream manufacturing units operated at a lower rate, as per the sources. The Nylon-6 chip market also experienced weak demand. While in India, imposed import duties on raw material prices impacted overseas purchases in India's Textile industry. Demand for Nylon-film in the food and packaging industry showed stagnant growth due to growing competitiveness with sustainable packaging. The PMI of Japan, according to the au Jibun bank, slightly edged up to 49.7 compared to 49.6 in the previous month, indicating stagnant manufacturing activity in that region. In September, Cyclohexanone prices in Asian continents demonstrated a sharp hike. The textile industry geared up to meet the expected growth in demand due to the upcoming festival season. International purchases increased to serve the current retail market as local inventory in textile units was about to dry up. Moreover, demand from downstream nylon material in the automotive sector remained steady in the South Korean market. Upstream petrochemicals such as benzene and its derivative phenol prices followed an uptrend over the September month. Adverse weather and natural disasters like typhoons affected the logistics flow in China and increased port congestion. The total active regional capacity of Phenol (in tonnes) in APAC increased by 26.7% compared to the previous month. Thus, PABT prices in China closed on Sept.29 at USD 1385, FOB Quingdao.
Europe
Front month Cyclohexanone prices of the third quarter continued the previous month's bearish tail. Ample gas inventory on the EU’s storage side and lower upstream material prices pushed Cyclohexanone prices down. Also, Italy’s EPR regulations to reduce environmental impacts from textile waste affected the downstream industry demand. In July, Italy’s inflation rate was reported on a downward trend, at 5.9%, lower than the previous month's inflation of 6.4%, as data provided by the National Statistical Institute. In August, Cyclohexanone prices started traveling upwards again. As per sources, Northwest European crackers operated at low rates in the first two weeks of August. An overall pressurized Eurozone economy, petroleum products market volatility, muted upstream market, and anticipated future demand growth kept the Cyclohexanone prices on a bullish trend. In September, declining numbers of new orders and work backlogs pressured the production line throughout the Eurozone. Ample domestic inventory was available to serve future domestic demand. However, a rise in freight rates for overseas purchases affected export operations negatively. The European market tumbled on upcoming interest rate concerns. Thus, Cyclohexanone prices in Germany as of Sept. 29 closed at USD 1835 per metric tonne, FD Hamburg.
For the Quarter Ending June 2023
North America
Cyclohexanone has witnessed a bearish stance in the second quarter of 2023. The downward trend in the prices of feedstock chemicals like benzene and phenol contributed significantly to the declining prices of Cyclohexanone. As per the Institute of Supply Management, Manufacturing PMI in the United States rose to 47.1 in April 2023, up from a three-year low of 46.3 in March 2023. The downstream demand for automobiles and the construction sector showed mixed sentiments, declining in the first half of the quarter and then improving in the second half as the DJUSAU index regained its original position by the end of June 2023. On the upstream side, the prices of Crude Oil have weakened, which has exerted downward pressure on the prices of Cyclohexanone. This was due to the weak demand situation created by high-interest rates. The declining freight charges and a slowdown in demand from the downstream market have prompted the manufacturers to reduce their offers to stimulate new shipments. As inflation lowered and market sentiments started showing bullish trends, the demand for Cyclohexanone may pick up in Q3. Prices of Cyclohexanone FOB Texas were settled at USD 1616/MT in the month of June 2023.
APAC
Cyclohexanone has witnessed a bearish stance in the second quarter of 2023. The downward trend in the prices of feedstock chemicals like benzene and phenol contributed significantly to the declining prices of Cyclohexanone. The downstream demand from the construction and automobile sectors declined significantly as China’s PMI construction declined from 65.6 to 63.0 in Q2. The Chinese automotive sector showed mixed market sentiments, with demand declining till May 2023 and a gradual increase in June 2023 as market demand did not recover as per expectation. In Japan, the downstream industrial demand for Nylon fiber remained low, with high production and inventories pushing the price downward. The rising interest rates and tight monetary policies in the overseas market have also clobbered the demand fundamentals of Cyclohexanone among the manufacturers. In South Korea, the Central Bank of Korea has indicated the possibility of another interest rate hike amid sticky inflation in the domestic region, pressuring the purchasing power of the end-use industries. Supply lines remained adequate, while the demand sentiment in Korea remained bleak because of the international economic slowdown. Prices of Cyclohexanone FOB Qingdao were settled at USD 1008/MT in the month of June 2023.
Europe
Cyclohexanone has witnessed mixed sentiments in the second quarter of 2023. In the first half of the quarter, the price of Cyclohexanone increased due to increased demand from the downstream textile industries as inflationary pressures were reduced in the European market. The OPEC+ cut announced in April 2023 pushed the manufacturers to realize their profit margin from the downstream industries. In the second half, the demand from the downstream textile industries was reduced due to warmer weather and weak market sentiments. The manufacturers have slashed their profit margin by reducing the prices with the downstream textile and apparel industries etc., to improve market demand. Since the Brent and WTI crude has been impacted and is showing bullish sentiments, it is expected that energy and feedstock prices in the coming months will rise, which will subsequently provide a price cushion to the cyclohexanone manufacturers in Europe in the next quarter. Cyclohexanone was traded at $1828-1910/ton FOB Hamburg and $1808-1865/ton FOB Rotterdam in Q2 2023.
For the Quarter Ending March 2023
North America
The prices of Cyclohexanone have witnessed a volatile price trend in the US market. The drop in demand from the downstream chemical fiber industries has reduced the market value of Cyclohexanone. However, escalating upstream Benzene prices and improving downstream demand fundamentals have reinforced the market fundamentals. Furthermore, towards the end of the first quarter, the Cyclohexanone supplies were sufficient, and the operating rates of the manufacturing firms were regular. On the other hand, the financial sector worries have pressured the US economy on a broader level. The goods have been actively moved, and the rates for shipping containers from Asia to the US dropped as East and West Coast ports experienced a significant decrease in congestion. Therefore, considering the aforementioned reasons, Cyclohexanone FOB Texas prices were concluded at USD 1681 per ton in Q1-end.
APAC
At the start of Q1, the prices of Cyclohexanone remained buoyant in the domestic region of China. The production cut brought on by the limited workforce amid the Spring festival holidays has led to positive developments in the price realizations of Cyclohexanone. The COVID restriction has been lifted, and the transportation and logistics were unimpeded, as no supply-chain bottlenecks were reported. The manufacturing activities were also reinforced, and the market players were optimistic about the demand outlook from the downstream chemical fibers and solvent industry. However, no significant inquiries were observed from the domestic and overseas markets, leading to a reduction in the market value of Cyclohexanone toward the end of the first quarter. The ChemAnalyst database shows that Cyclohexanone FOB-Qingdao prices were settled at USD 1417 per ton in March.
Europe
Limited procurement from the downstream Adipic Acid industries has pressured the market sentiments of Cyclohexanone in the German market. Tight monetary conditions, rising interest rates, and workforce shortages all these factors have a cumulative effect on the price realizations of Cyclohexanone. However, the ease in input cost inflation has led to a decline in the production costs of several petrochemicals, including Cyclohexanone, in the domestic region. The manufacturers opted for a production cut for the sustenance of their profit margins as The inventories of Cyclohexanone in the domestic region were sufficient to cater to the inquiries from the terminal market. Overall, the supply chain has functioned normally in the given time frame, and the unwillingness of downstream manufacturers to build up stocks has been reported. Consequently, Cyclohexanone FD Hamburg prices averaged USD 1824 per ton at the end of the first quarter.
For the Quarter Ending December 2022
North America
In the US market, Cyclohexanone prices dropped throughout the last three months of 2022. The decline in WTI crude oil prices translated into a drop-in feedstock Benzene, resulting in soft cost support for Cyclohexanone. Meanwhile, demand dynamics remained sluggish as consumer sentiment continued to stay on a downward slope as recessionary fears and high-interest rates culminated in a decline in manufacturing and industry activity duly signified by the sharp plunge in US PMI in the last quarter. Furthermore, supply dynamics remained firm as the inventories reported by the market participants were on the higher side, while drop-in freight charges and sluggish consumption rates in Asia prompted Asian exporters to send Cyclohexanone onto the US shores. Hence, as of December 2022, Cyclohexanone prices were assessed at USD 1688 per MT.
APAC
Cyclohexanone prices declined consistently throughout the quarter in the Chinese domestic market due to weak demand dynamics, sluggish cost support, and ample material availability in the market. Feedstock Benzene prices constantly dropped in the last quarter due to a sharp drop in crude oil prices. Downstream Caprolactam producers reported ample material availability, thus limiting the demand for Cyclohexanone. Meanwhile, some end-use enterprises also use Cyclohexanone in the spot market, further pressuring the market dynamics of Cyclohexanone. Thus, as of December 2022, Cyclohexanone prices were assessed at USD 1356 per MT on a FOB basis. Oversupply of Cyclohexanone mainly dominated the market, leading to buyers having the upper hand in the negotiations.
Europe
In the European market, Cyclohexanone prices showed mixed sentiment during the last quarter of 2022. In the first half of the quarter, firm natural gas prices coupled with stable crude oil prices resulted in strong cost pressure on Cyclohexanone which culminated in a price increase amid stable demand dynamics from downstream Caprolactam and other value chains. However, in the second half of the quarter, Cyclohexanone prices declined sharply as energy prices plunged drastically while demand dynamics deteriorated amid soft consumer sentiment further pressured by holidays. Furthermore, cheaper imports the European ports from the Asian market further contributed to the declining prices of Cyclohexanone in the European markets. Therefore, Cyclohexanone prices were assessed at USD 1944 per MT on FD basis in Q4 2022.
For the Quarter Ending September 2022
North America
The Cyclohexanone market witnessed a continuous drop in the US domestic market throughout the third quarter of 2022. The price dropped by 0.9% and was recorded at USD 2120/ tonne FOB Texas in the week ending 12th August. The fall in the Cyclohexanone price was backed by the declining upstream Crude values and the feedstock Cyclohexane. Moreover, the demand from the terminal side was weak. The poor purchasing activities from the importing countries dropped, resulting in the stockpiling of the product in the US domestic market. Thus, the manufacturers offered a discounted price to sell off the existing products. Additionally, the requirement for Cyclohexanone dropped from the downstream textile, construction, and other sectors due to poor consumer consumption.
Asia
Asia showcased demand dullness for Cyclohexanone during the third quarter of 2022. Following the declining price trend of upstream Crude, the Cyclohexanone market continued to drop in China. Due to the sufficient availability of upstream Crude, its price fell, further influencing the feedstock Benzene and Cyclohexane. After the lockdown effect, the textile industries are recovering, resulting in poor demand for the downstream Caprolactam and Nylon 66. Thus, the declining production of these downstream products led to decreasing demand for Cyclohexanone. Also, the requirements from the regional markets dropped, ushering in plummeting Cyclohexanone pricing. Therefore, the exported cargo's price also fell, pulling down the Cyclohexanone market. As a result, the Cyclohexanone market settled at USD 1520/ tonne FOB Qingdao in August 2022.
Europe
Germany consistently witnessed a rise in the Cyclohexanone market for the first two months of Q3 2022 due to the continuous increase in the energy crisis. The Cyclohexanone price was hovering around USD 2320/ tonne FD Hamburg with an increment of 0.4% in August. The tight supply of natural gas from Russia has been creating havoc in the functioning of manufacturing plants. Additionally, the electricity price in Germany spiked by 2%, hitting a record high due to the reduced output from the Beznau Nuclear power plant as the Rhine river temperature is high. Also, the vessel brokers quoted high freight charges, further pushing up the Cyclohexanone pricing. Furthermore, the downstream Caprolactam prices are witnessing an optimistic trend, pushing up the Cyclohexanone values.
For the Quarter Ending June 2022
North America
During the second quarter of 2022, the price of Cyclohexanone showcased an uptrend in the US market. The price rise was backed by the increased demand from the downstream Caprolactam market. The increased purchasing of Caprolactam from the textile industry resulted in the increase in the upstream Cyclohexanone price trend. Moreover, the tight supply of Crude in the US market after the imposition of various sanctions on the Russian oil import influenced the Cyclohexanone market and ushered in the upward price movement. However, the raw material prices increased during the second quarter, supporting the Cyclohexanone pricing. In addition, the high freight charges were triggering the Cyclohexanone market in the quarter ending June 2022.
APAC
The unprecedented outbreak of COVID cases in China resulted in an oscillating price trend of Cyclohexanone prices in the Chinese market. The market closure and the weak buying activities in the domestic market affected the Cyclohexanone prices in early April 2022. Moreover, the reduced demand for Crude from the Chinese market led to the Crude price drop, negatively impacting the Cyclohexanone price. Later, in April and May, the Cyclohexanone price regained strength in the domestic market. After the May Day holidays, the domestic market resumed ushering in healthy buying activities. Moreover, the downstream caprolactam production increased further, increasing the Cyclohexanone pricing.
Europe
In the second quarter of 2022, the Cyclohexanone market witnessed an upward trajectory movement in the European region. The sanctions on the import of the Russian oil embargo brought the German market under a tight supply of Crude due to the limited availability of the product. Due to its use to produce Caprolactam, the increasing demand for Cyclohexanone from the regional market triggered Cyclohexanone pricing. Moreover, the high fuel costs and the freight charges also inflated the cyclohexanone prices. In addition, the export charges of Cyclohexanone rose as a result of the limited availability of the product in the domestic market.
For the Quarter Ending March 2022
North America
Cyclohexanone prices observed a marginal rise in North America during the first quarter of 2022. The disruption caused by the Russia-Ukraine conflict resulted in the oil and gas crisis. Firm upstream crude and feedstock Benzene values impacted the Cyclohexanone production cost. Moreover, robust demand for downstream paints & coatings, varnishes, lacquers, and the production of Caprolactam from end-use industries pushed up Cyclohexanone prices. In addition, the rising freight costs have aided Cyclohexanone's price increase in the domestic market of the USA. The prices of Cyclohexanone in the USA settled at USD 1950 per MT Texas with an inclination of 0.5% from February to March 2022.
Asia Pacific
In Asia Pacific, Cyclohexanone prices rose continuously during the first quarter of 2022. Some of the production plants were forced to close due to a surge in Covid cases in China, resulting in increased Cyclohexanone costs in the nation since then. Government's implementation of the zero-covid policy to curb the spread of a highly infectious strain of the coronavirus kept Chinese industries and businesses shuttered for the whole quarter. In addition, rising upstream prices further affected the Cyclohexanone market to showcase an upward trajectory movement. However, in the Indian market, the cost of Cyclohexanone was projected at USD 2295 CFR JNPT in March.
Europe
Cyclohexanone prices showcased marginal upward movement in the first quarter of 2022 owing to the upsurge in crude prices, which affected the price of feedstock Benzene, influencing the Cyclohexanone market. Rising fuel prices had a severe impact on the freight and transportation charges, forcing the manufacturers to increase the price in order to protect their margins. Thus, Cyclohexanone prices in Germany averaged at USD 2040 per MT FD Hamburg in the quarter ending March 2022.
For the Quarter Ending December 2021
North America
Consumption for Cyclohexanone marginally firmed in the manufacturing of dyestuffs, textile dyestuff, polymers, and others in comparison to Q2 and Q3 2021. However, the demand for Cyclohexanone remained low with respect to Q4 2020 due to uncertainty in the consumption of solvents which appreciably contributed laying a negative impact on its prices as well. Majority of the companies have been producing this product for captive use rather than trading. Ample availability of feedstock in Q4 eased it manufacturing cost and led to a marginal drop in its prices.
Asia
Cyclohexanone prices witnessed steep highs and lows in the Asian market due to volatile demand in the region. Cyclohexanone is primarily imported from China, and the price increased due to a combination of halted production in China and increased freight charges, putting an unsustainable load on supplies to India. In the meantime, downstream sectors showed signs of improvement, and traders were hoarding cargoes in an anticipation of a large increase in demand in the coming weeks. Even though the demand for solvents in India remained volatile, traders were heard stockpiling inventories under anticipation of a shortage in supply by the next quarter. Cyclohexanone CFR prices in India averaged at USD 2087 Ex-Kandla in December.
Europe
Cyclohexanone demand in the European region remained nearly stable during a large party of Q4 due to seasonal slowdown in the demand for solvents. Backed by the feeble demand and high energy prices, Cyclohexanone production also tumbled in comparison to its other available alternatives. The demand is expected to stabilize by the end of Q1 2021 due to a likelihood of rise in demand from Adipic Acid segment.
For the Quarter Ending September 2021
North America
In North America, Cyclohexanone market experienced an uptrend in the third quarter of 2021 backed by sturdy demand from the downstream Adipic Acid manufacturers. Moreover, spike in the feedstock Cyclohexane prices also aided the pricing trend of Cyclohexanone in the region. In addition, production rates as well as the supply chains were disrupted due the impact of Ida hurricane which made landfall in the USA in August end that consequently slumped the availability of the product and hence, pushed up the values of Cyclohexanone in this timeframe.
Asia
In the third quarter of 2021, Cyclohexanone market reported mixed sentiments in Asia. Stability in the overall prices of Cyclohexanone was registered backed by the ample supply of the product as industries improved their production rates post Covid. In India, an improvement in the offtakes from the downstream manufacturers was observed. To cope up with the regional demand local manufacturers ramped up their production rates in this quarter. However, towards the end of the quarter, local traders faced disruption in the export of upstream Cyclohexane which resulted into the pile-up of inventories that pushed down its prices in India. Thus, ample supply and downfall in the prices of feedstock led to the decline in the values of Cyclohexanone, thus its prices drifted from USD 1744.42 per MT to USD 1692.99 in July to August timeframe. However, marginal rise was observed in the prices of Cyclohexanone backed by high freight charges, in September. Cyclohexanone monthly average prices were assessed at USD 1742.55 per MT. Therefore, in India minimal change was observed in the overall prices of Cyclohexanone during this quarter.
Europe
In Q3 2021, Cyclohexanone market remained tight across the European region backed by the limited supplies of feedstock Benzene. European Cyclohexanone market emulated the market trend of North America as a major part of feedstock is imported from the USA. Price trend traced the values of upstream Benzene that consequently pushed the values of Cyclohexanone in the region. In addition, exorbitant freight charges and shortage of shipping containers also influenced the prices of Cyclohexanone in this quarter across the Europe
For the Quarter Ending June 2021
North America
Cyclohexanone prices climbed steadily throughout the quarter in USA, supported by firm demand from downstream sector and rising feedstock prices. During this quarter, feedstock Cyclohexane prices rose consistently, pushing up the prices of downstream derivative Cyclohexanone in the country. Moreover, shortage of upstream Benzene also played an important role behind this steep rise in prices of its downstream derivatives in USA. In addition, it was observed that, after successful vaccination drive in USA, the demand for Cyclohexanone from textile segment increased effectively in the country. Therefore, prices kept rising throughout the quarter, and were accessed at USD 2100/MT during second half of April in USA.
Asia
Cyclohexanone prices varied country over country in the APAC region, during Q2 2021. In China, prices demonstrated regular rise throughout the quarter, backed by soaring upstream Benzene prices. While in India, prices fluctuated due to logistical issue and under the influence of second wave of pandemic in the country. In May and June, prices tumbled as the aftereffects of pandemic narrowed down the consumption of Cyclohexanone in domestic textile segment. Therefore, after declining for weeks under dull demand fundamentals, Cyclohexanone prices drifted to USD 1941/MT in the last week of June in India.
Europe
In Europe, supply activities of upstream Benzene remained tight throughout the quarter, due to prolonged disturbed supply activities from USA and other logistical hinderance. Feedstock Cyclohexane prices were heard rising during the meantime, taking cues from soaring regional Benzene prices, which eventually shot up the price of Cyclohexanone across the region. In addition, Suez Canal blockage also created the short-term shortage of feedstock Cyclohexane across the region during the first two weeks of April, which also influenced the prices of Cyclohexanone in the country.
For the Quarter Ending March 2021
North America
The North American market encountered a severe shortage of feedstock chemicals to produce chemical products, under devastating weather conditions. Several plants remained idle either due to weather conditions or due to the shortage of upstream chemicals. Meanwhile, Cyclohexanone had a firm demand from the downstream sectors like Adipic Acid, despite of the fact that there were several plants outages observed during this period. Under critical material shortage, price of Cyclohexanone rose effectively from USD 1040/MT and reached USD 1120/MT during January-March timeframe.
Asia
The Asian market faced back-to-back hikes in the Cyclohexanone prices during the first quarter. Demand for Cyclohexanone from the downstream Adipic Acid producers remained stable, strengthened by the buoyant Nylon industry. Firming crude oil, battered with huge hike in container and freight cost, supported the prices of Cyclohexanone across Asia. Cyclohexanone gained by double digits, surging by more than 23% in the Indian market and nearly 67% in the Chinese market.
Europe
Demand for Cyclohexanone in the European market remained low as operational cuts at the downstream sectors dented the overall dynamics. In Germany, several plants outages were reported due to unfavourable weather conditions forcing some plants to remain shut including those manufacturing Adipic Acid, which reduced the requirement of Cyclohexanone. In addition, transportation lags also impacted the regional availability of feedstock chemicals. Despite of low demand, prices showed some improvement during the quarter due to shortage of imports from the USA.
For the Quarter Ending December 2020
North America
With the ease in lockdown in the USA and Canada, the demand for Cyclohexanone increased in the manufacturing of dyestuffs, textile dyestuff, polymers, and others in comparison to Q2 and Q3 2020. Major increase in demand came from increased consumption for Nylon6 and Nylon 6, by the end quarter 2020. Besides, the demand for Cyclohexanone was also observed to have increased in Q4 2020 due to high demand as a solvent which appreciably contributed in laying a positive impact on its prices as well. Influenced by the appreciable demand, supply for Cyclohexane also increased as the manufacturing companies like ExxonMobil and LANXESS decided to increase the operating efficiency of their plants. Majorly, the companies are producing this product for captive use rather than trading.
Asia
Due to fluctuation in prices of upstream crude and benzene, the prices of Cyclohexanone remained unstable in Q4 2020. The demand for Cyclohexanone increased by December 2020 due to appreciable market fundamentals in the plastic and textile industries in China, India, Japan, and several other Asian countries. With the production of downstream Adipic Acid and Caprolactam increasing due to rising demand, the demand-supply gap of the products increased by the end of December 2020. Prices of Cyclohexane were observed to have increased from an average of USD 884 per MT in October to USD to USD 1042 per MT in December in the Southeast Asian market.
Europe
Demand for cyclohexanone in the European region remained stable during a large party of Q4 due to the availability of cheaper alternatives i.e., cyclohexane and cyclohexanol in the market. Amidst continued lockdowns in several parts of Europe, the demand was observed to be on the lower side. Backed by the feeble demand, production of Cyclohexanone also tumbled in comparison to its other available alternatives. The demand is expected to stabilize by the end of Q1 2021 due to an expected rise in demand in the manufacturing of Adipic Acid.
