Cyclohexane prices across the European market continued to trend downwards midway into May 2025, driven by persistently weak demand, unfavorable export conditions, and a decline in production costs attributed to falling feedstock benzene prices, which remained the predominant pressures of the European Cyclohexane market.

Supply levels of Cyclohexane remained abundant, as producers continued to move existing inventories, thereby improving material availability and placing additional downward pressure on prices.

Recent weeks witnessed a noticeable drop-in spot market activity for Cyclohexane in Europe, in parallel with the broader weak demand conditions. The primary contributor to this decline continues to remain lower feedstock costs, particularly benzene, which have weakened downstream margins. End-user demand has continued to lag, offering little support in stabilizing prices. While many market participants await further transactional data to confirm the lower price range, sentiment remains broadly bearish. Market participants across Europe reported that a lower price range is now becoming more accepted, indicating widespread cautious buying behavior and persistently weak fundamentals.

In the feedstock benzene market, deals continued to remain confirmed at lower levels, reinforcing the bearish sentiment that has prevailed since late April. Market activity for Cyclohexane remained subdued due to public holidays and the recent conclusion of contract price negotiations. This slowdown in trading—especially around the Labour Day holiday—has intensified the weakness in benzene demand into May, which is expected to further pressurize Benzene prices.

Additionally, May contract prices for benzene registered a notable decline of EUR 65/ton. This prompted several Cyclohexane suppliers to withdraw from the market temporarily, anticipating better offers amid ongoing corrections in feedstock pricing, which further contributed to reduced demand for Cyclohexane.

Weak demand continued to stem primarily from the downstream caprolactam and nylon industries, which remain the dominant consumer segments for Cyclohexane in Europe. These sectors continued to show weakness in demand conditions, with weak demand conditions seen spreading to downstream paints and coating industries.

In the caprolactam sector, plant operating rates remained low during May 2025, partly due to the impact of earlier public holidays across Europe. Consequently, Cyclohexane consumption was reported to be muted, further pressurizing prices downward.

Export conditions also remained challenging, particularly at key Northwestern European ports. Congestion and logistical disruptions at the Port of Rotterdam, where yard utilization rates exceeded 92%, led to vessel delays of 7–10 days. These disruptions further slowed cargo movement and delayed outbound shipments, resulting in inventory accumulation at the ports and reinforcing domestic supply-side pressure, thereby intensifying price declines.

As of mid-May, Cyclohexane prices in Europe had declined by approximately 1.7%, in tandem with benzene prices, which registered a sharper drop of around 7.2% during April. The continued weakness in feedstock values has amplified bearish sentiment in the market.

As per anticipations expectations remain pessimistic for the remainder of May 2025. Demand is likely to stay subdued despite marginal improvements in the construction sector. With benzene contract prices having declined significantly, a "wait-and-see" approach is being adopted by many market players. Until clear indications of market stabilization emerge, the bearish pressure on Cyclohexane prices is expected to persist.