European Cyclohexane Prices Plummet Due to Weak Market Sentiments
- 09-Nov-2022 2:31 PM
- Journalist: Rene Swann
The price of Cyclohexane persistently decreased in the European market due to weak market sentiments. The feedstock benzene prices declined during the last two weeks in the European market, which supports the downstream derivative industries, including Cyclohexane.
Demand has been severely weakened in Europe by the economic downturn and the fear of recession. Most consumers in Europe are pessimistic about the country's economy in the current situation. The weak orders from importing countries like Belgium, France, and other European regions reduced the cost of Cyclohexane.
In terms of supply, the domestic traders have sufficient supply, and the surplus availability of Cyclohexane in the European market also contributes to the negative price trend. The supply chain has been eased, port congestions are improving in Europe, and the product's availability is feasible. Most European countries have filled their natural gas storage to meet the winter demand in the region. Despite hopes for lower gas prices in the near term, which could alleviate some of the cost-of-living crisis, European leaders have been under pressure to secure supplies in the medium term.
As per the ChemAnalyst, the cost of Cyclohexane hovered around USD 1865 per MT on a FOB Nuremberg basis with a weekly depreciation of the week ending 4th November 2022.
According to the expert, Cyclohexane prices will likely continue to fall because of weak end-user demand. Consumers are hesitant to buy the product due to several factors happening in the Eurozone. Order from the end-use industries remains lackluster in the market. Due to high inflation, geopolitical uncertainty, and a weaker global economy, European manufacturers expect lower output in the coming months.