Chinese Cyclohexanone Market to Rebound After a Constant Plunge
- 07-Jul-2022 4:48 PM
- Journalist: Li Hua
Cyclohexanone prices have been witnessing a narrow rebound in the Chinese domestic market. After a continuous fall in the previous weeks, the Cyclohexanone market showcased a slight uptrend from the past two days. The demand from the downstream market and the surging raw material prices were supporting the escalating price trend.
After the ease of lockdown restrictions, the domestic market and the manufacturing plants resumed. The requirement for Cyclohexanone rose slightly after the restart of the downstream Lunan CPL plant. The demand for Caprolactam in the domestic market is growing as it can produce Nylon 66. Hence, the growth of the Caprolactam market has been reviving the Cyclohexanone prices in a narrow range. Moreover, the stable demand from the regional market is also pushing up the Cyclohexanone market.
The Chinese market has been importing a large amount of Crude from Russia in June as they offer oil at a significant discount compared to the benchmarked Crude prices. Despite Crude's huge availability, Benzene prices are boosting in the Chinese market because of the healthy demand for the product. Hence, the growing price trend of Benzene is influencing the feedstock Cyclohexane, further showing a small surge in Cyclohexanone pricing.
Additionally, the soaring fuel prices and the freight charges are also triggering the stockholders to maintain a positive trend in the market. Besides, the imported cargoes price is similarly increasing, ushering in the improving Cyclohexanone price trend.
After a thorough analysis, the ChemAnalyst team concludes that Cyclohexanone prices are likely to follow an upward movement in the domestic market due to its healthy use in the growing textile industries. Healthy buying sentiments from the domestic market might also trigger the price trend. Also, the raw material prices could increase due to the tight global supply, further inflating the Cyclohexanone market.