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Europe Cyclohexane Prices Show Mix Trend in Mid-October 2023 Amidst Fluctuating Benzene Costs
Europe Cyclohexane Prices Show Mix Trend in Mid-October 2023 Amidst Fluctuating Benzene Costs

Europe Cyclohexane Prices Show Mix Trend in Mid-October 2023 Amidst Fluctuating Benzene Costs

  • 26-Oct-2023 3:17 PM
  • Journalist: Motoki Sasaki

The price of Cyclohexane in the German market exhibited a mixed trend over the past two weeks, influenced by the dynamics of the raw material Benzene. Despite fluctuations, the overall demand for the product remained at an average level. Merchants in the Eurozone area adopted a need-based approach to purchasing Cyclohexane, indicating their reluctance to maintain substantial stock levels. This suggests that the market participants were cautious and preferred to procure the product only when necessary rather than building up excess inventory.

During the second week of October 2023, the raw material Benzene prices experienced a significant decrease, dropping by 9.3% (FOB Hamburg basis). This decline in Benzene prices had a notable impact on the pricing trends of downstream industries, including Cyclohexane. However, in the previous week's ending, there was a 2.2% increase in the price of Benzene, which subsequently drove the prices of Cyclohexane to increase by 2.7% (FOB Nuremberg basis). These fluctuations in the price of Benzene directly influenced the pricing dynamics of Cyclohexane in the market.

Furthermore, the downstream industries, including solvents, paints & coatings, and Nylon manufacturing, experienced a lackluster performance. This can be attributed to several factors, such as the Eurozone's stagnant construction and textile industries, high-interest rates, and other economic factors. These conditions have significantly impacted the demand for Cyclohexane, resulting in reduced product consumption during this period.

The economic downturn in the Eurozone accelerated as the fourth quarter of 2023 began. In particular, the goods-producing sector reported a steeper rate of contraction, with the pace of output declines remaining at a marked pace similar to that seen in September. This suggests that factories in the Eurozone are still experiencing a significant downturn.

New orders from the potential customers received by Cyclohexane manufacturers also fell in October, dropping slightly faster than in September. This decline in new orders has notably impacted Cyclohexane manufacturers, leading to a slump in their product output.

The decline in new orders and the quicker depletion of backlogs of orders led to companies reducing their employment levels in October 2023. Reduced demand for inputs meant that vendor lead times improved, resulting in faster deliveries and reduced supply chain price pressures. This situation reflects the broader economic challenges faced by industries, including the impact on employment and supply chain dynamics.

Businesses in the Eurozone continued to have low confidence in the year-ahead outlook. At the same time, expectations were somewhat less pessimistic than in September 2023. These challenging economic conditions have affected various industries, including the production and demand for Cyclohexane.

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