Cyclohexanone Prices are Experiencing a Continuous Downtrend in Europe
- 26-Aug-2022 2:55 PM
- Journalist: Patrick Knight
The weak purchasing activities in Europe resulted in the downtrend of Cyclohexanone prices. The sufficient availability of the raw materials and the sluggish need for the product from downstream manufacturers backed the decline price trend of Cyclohexanone. Also, the rising climate crisis is affecting the Cyclohexanone market continuously.
The Felixstowe dock workers' eight-day strike caused port congestion due to the UK's rising cost of living, which further delayed the supply of the goods and led some consumers to look elsewhere for their supplies. Hence, the congestion led to the stockpiling of the product in the UK domestic market, dragging down the Cyclohexanone prices. Besides, the sluggish demand from the neighboring countries after the inflation hit affected Cyclohexanone prices.
The rising temperature and the current surge in the heatwaves have been affecting the water levels in Germany, drying up one of the important rivers, the Rhine. The low water level is also dragging down the German economy, which is already affected by the Natural gas crisis. Also, the producers followed spot prices, and the downstream manufacturers purchased the products on a need-to-need basis. Moreover, the Euro fell by 0.9903 on Tuesday against the US dollar, negatively impacting the commodity's price.
In addition, the export charges from the Netherlands were high, but the demand from the domestic and neighboring Belgium, Germany, and Denmark markets was low, ushering in the downtrend of Cyclohexanone. However, Italy and Turkey were importing massive quantities of upstream Crude from Russia despite the Russian sanctions. Thus, the sufficient availability of upstream Crude led to a decrease in the feedstock Benzene and Cyclohexane values, further impacting the Cyclohexanone market. Therefore, the prices of Cyclohexanone in Turkey slumped by 2.6%, dropping by $61 per tonne.
According to ChemAnalyst, the prices of Cyclohexanone might increase in the coming weeks. The water level is likely to decrease in Germany and might result in soaring freight charges. Moreover, the Euro could continue to depreciate against the US dollar, leading to high import charges. Also, the supply chain disruption might ease, and the demand may regain strength.