Cyclohexanone Shoots up amidst the demand-supply Imbalance
- 10-May-2022 4:32 PM
- Journalist: Nina Jiang
Shanghai: Cyclohexanone prices witnessed an upward trajectory movement in the Asia-Pacific region due to the rising raw material prices. The Cyclohexanone price hike was also backed by the region's rising demand and hindered supply chain dynamics. Moreover, the disrupted trade activities are also another reason to be mentioned for the price hike.
However, in China, the demand and supply rose rapidly after the May Day vacation. The requirement for Cyclohexanone in the production of paint, Adipic Acid, pesticide, caprolactam, etc., thrived from the downstream sectors.
Moreover, healthy buying sentiments were seen in the domestic market after an ease in the lockdown restrictions resulting in the Cyclohexanone price rise. As a result, the Cyclohexanone prices rose by around 1.7% approximately, with an inclination of $29/ tonne from May 6th to May 9th.
In addition, the relaxation of the port congestion in China has led the cargo holders to boost up their trading activities. When ChemAnalyst cross-examined one of the cargo holders, they informed that "once the atmosphere in Shanghai port was clear, the demand for the Cyclohexanone from the regional market increased rapidly, further influencing the Cyclohexanone market to rise."
According to ChemAnalyst, "The demand for the Cyclohexanone might show a healthy rise due to its increased use in the downstream adipic acid, caprolactam and pesticide production. If the Russia and Ukraine conflict persists, the crude values are not likely to ease in the forthcoming weeks. Furthermore, the increased trade activities might also influence the Cyclohexanone pricing."