Cyclopentane Market Remains Under Pressure Amidst Firm Demand
- 30-Apr-2025 11:00 AM
- Journalist: Joseph Dennie
The Cyclopentane market remained volatile throughout April 2025, with the prices escalating in the first half of the month, however easing in the later half. This prices volatility is attributed to a variety of reasons including fluctuating price trend of essential feedstock Benzene. Further ongoing trade disruptions have also contributed to the current price volatility.
In the Chinese market, the prices of Cyclopentane increased during the initial weeks of the month. With the onset of summers, a heightened purchasing activity from the prominent end-user refrigerant and foam-blowing sectors, which are significant consumers of Cyclopentane was observed. This seasonal uptick in demand exerted upward pressure on prices. Additionally, during the same time period, the cost of benzoene, a crucial raw material for the synthesis of cyclopentane, increased. Cyclopentane prices were further impacted by the higher manufacturing costs brought on by this increase in feedstock prices. Inventory levels were enough to fulfill the current contractual obligations from the perspective of supply. However, the observed price increase in the Cyclopentane market during this time was caused by a mix of solid seasonal demand and higher manufacturing costs.
However, as the month went on, the inventory development caused Cyclopentane prices to drift southward. Port congestion in North and Central China remained elevated, particularly in North and Central China, with weather-related work stoppages at key ports such as Shanghai, Ningbo, and Bohai, leading to high vessel queues. While some North Asia ports had minor improvements, congestion continued, causing delays in shipments. This backlog caused an oversupply of cyclopentane, and thus traders were selling commodities at a discounted price, resulting in a downward pressure on prices despite stable demand.
Meanwhile, the Indian Cyclopentane market also trailed the same price trend as the buying activity for Cyclopentane remained corporation from both domestic and international market. India's continuous development of environmentally friendly, low-GWP blowing agents in accordance with sustainability objectives and environmental legislation was also credited with the spike in local demand. Additionally, the United States' recent policy change to halt further tariffs on Indian imports for ninety days until July 9, 2025, has started to boost export demand. This interim tariff relief has revived international buyers, potentially providing a modest boost to overall sales volumes and providing a more positive outlook for Indian Cyclopentane. Further, Haldia Petrochemicals Limited located in Haldia, West Bengal also underwent a month-long maintenance shutdown during the same period. Despite this constraint manufacturing domestic suppliers managed to maintain adequate Cyclopentane inventories which led to the subsequent ease in prices in the second half of the month.
As per ChemAnalyst, the prices of Cyclopentane are expected to move northwards in the forthcoming days owing to modest seasonal demand and fluctuations in feedstock Benzene prices.