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Despite an Increase in Feedstock, Cyclohexane Prices Continue to Decline in Europe

Despite an Increase in Feedstock, Cyclohexane Prices Continue to Decline in Europe

Despite an Increase in Feedstock, Cyclohexane Prices Continue to Decline in Europe

  • 19-Oct-2022 3:06 PM
  • Journalist: Rene Swann

Cyclohexane prices have continuously declined in Europe, with disappointing downstream demand in October 2022. Furthermore, consumer sentiment has been dampened by fears of a European recession, affecting regional petrochemical markets, including Cyclohexane.

The weak demand from the downstream industries like coating, adhesives, and other key driving sectors led Cyclohexane prices in the southern direction. The domestic production cost has remained high amid soaring energy and operating costs, resulting in weak output rates. According to the Eurostat data, the European inflation rate increased from 9.1% to 10% in September 2022 compared to the previous month. Due to increased natural gas prices and additional utility costs in the European region, consumers were hesitant to purchase Cyclohexane in the market. The weak purchasing orders from the end-use industries and manufacturers have quoted less for Cyclohexane due to the high availability of the product in the regional market. In terms of supply, some ports were congested, which still has not eased, resulting in that delays in delivering the product to the destination. In the UK, Liverpool port completed the seven days port strike on October 17, 2022, and further strike action was announced from October 24 to November 7, 2022. The frequent strikes will affect trading activities and disrupt the supply chain globally.

As per ChemAnalyst, the cost of Cyclohexane hovered around USD 1950/MT on a FOB Nuremberg basis, with a weekly decline of 1.5% during the week ending October 14, 2022.

According to the ChemAnalyst estimation, the Cyclohexane price may fall due to the uncertainty in the European market. The operating cost remains high, with weak consumer sentiments across the Eurozone due to increased natural gas prices. The Russia-Ukraine war continues to weaken the global economy through significant trade disruptions and food and fuel price shocks, all of which contribute to high inflation and subsequent tightening of global financing conditions.

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