Dynamic demand fundamentals dominate the global Cyclohexanone market
- 14-Apr-2022 8:34 PM
- Journalist: Rene Swann
The global Cyclohexanone market showed an upward movement during the first week of April. Solid downstream demand increased upstream costs, trade disruptions caused by the Russia-Ukraine war and COVID resurgence in China are the primary factors determining the pricing dynamics.
The escalating tension between Russia and Ukraine, resulted in soaring crude oil prices, influencing its derivatives, in turn. Manufacturers use around 10% of Benzene production in the manufacturing of Cyclohexane; as a result, price changes in the feedstocks Benzene and Cyclohexane caused Cyclohexanone to rise.
Cyclohexanone is a colourless, flammable organic liquid derived from Cyclohexane. The demand from end-use sectors such as automotive, electronics, textile, etc., rose with the wide use of Cyclohexanone in the manufacture of Caprolactam and Adipic acid. However, the growing demand for Caprolactam in the global market for the production of Nylon 6 and Nylon 66 affected the Cyclohexanone market.
USA is one of the most significant cyclohexanone exporters in the world. US sanctions on Russia’s oil and gas have started to cause an energy crisis which pressurized the suppliers to raise the cost of Cyclohexanone to maintain the profit. Moreover, the diesel price rose to $5.14/gallon at the national level, increasing by $2/gallon, which directly impacted the shipping activities. Thus, the skyrocketing freight charges resulted in an upward trend in the Cyclohexanone market. Therefore, the price of Cyclohexanone in the USA settled at USD 1985 per tonne FAS Texas on 8th April.
According to ChemAnalyst,” Cyclohexanone prices may showcase an upward movement in the forthcoming weeks. Expected growth in the textile industry might result in high demand for Cyclohexanone. Moreover, the crippling energy crisis in the US may rise in the aftermath of the sanction of oil from Russia along with the soaring Crude oil and feedstock Benzene prices which may push up the Cyclohexanone values.”
