Cyclohexane Price Plunged due to Weak Market Sentiments in Europe
- 23-Sep-2022 5:49 PM
- Journalist: Robert Hume
Since the second week of September, Cyclohexane prices have observed a downward trend in Europe. The feedstock Benzene price steep fall in the market owing to the crude values dropping below 100 USD in the international market. This price drop in Cyclohexane supports the downstream chemical markets like Caprolactam and Polyamide 6.
The weak demand from the downstream sectors and the poor consumer consumption decrease the price of Cyclohexane. The manufacturers' high inventory level of Cyclohexane and surplus availability in the market made negative price movements. The adequate availability of Cyclohexane, traders, and suppliers' stockpiles in the European market.
This week's operational cost marginally declined in Europe due to decreased natural gas prices. Most of the countries in the European region have stored natural gas for their upcoming winter season. Germany is the largest consumer of gas stored natural gas, with about 86% complete for the upcoming winter season.
The supply chain is disrupted due to port congestion, and the Rhine River's low water level continues. Some terminals still accept it limited empty containers in the ports. UK Felixstowe port has confirmed a new strike for eight consecutive days from 27th September 2022. This strike will impact the supply chain disruptions globally to the delivery of goods within a stipulated time.
As per ChemAnalyst, the price of Cyclohexane hovered around USD 2030/MT on a FOB Nuremberg basis with a weekly declination of 3.3% during the week ending 16th September 2022.
According to the Analyst, Cyclohexane prices are expected to drop in the European market due to the weak demand from the downstream derivative and end-use industries. The volatility in crude oil values also contributes to a negative market price trend. The less buying sentiments from the consumers support the price movement. It is expected that the natural gas price may decrease slightly due to countries' stored natural gas needs.