Cyclohexane Prices in Europe Exhibit a Bearish Trend Amidst Weak Market Sentiment

Cyclohexane prices are decreasing in Germany due to weak market sentiments in the regional market. The weak-cost pressure from upstream Benzene leads to the declining price trend of downstream derivatives, including Cyclohexane. As per ChemAnalyst, the cost of Benzene hovered around USD 852/MT on a FOB Hamburg basis with a week-on-week declination of 3% during the week ending 13th January 2023. Manufacturers of Benzene saw a decline in new orders, which not only showed a slower rate of overall shrinkage but also continued to show a weaker trend than output.

The Cyclohexane demand is still not clicking into gear. The stock building activities are smaller than usual in the European region. The product availability is adequate, and the producers are reducing the product price due to its high availability in the market. Natural gas prices have fallen this week due to sufficient inventories and low business demand. Germany is maintaining its gas storage capacity, with sites filled to 89.87% of capacity, thanks to lower consumption and pleasant weather.

Cyclohexane is an intermediate material to produce Caprolactam and Adipic Acid. These two downstream derivative industries are stable to weak in demand this week due to the weak market sentiments in the Europe region. The demand shows a declining trend across Europe due to the high inflation rates. However, in Europe, there are no significant port congestions and a sufficient level of labor available.

As per ChemAnalyst, the cost of Cyclohexane was settled at USD 1420/MT on a FOB Nuremberg basis with a week-on-week declination of 1% during the week ending 13th January.

According to the expert, the cost of Cyclohexane is anticipated to decline in upcoming weeks due to its high inventory with low demand from the Eurozone. The price of Cyclohexane is expected to increase if the stockpiling increases across Europe.