For the Quarter Ending June 2025
North America
• The Cyclohexane Price Index in North America declined during Q2 2025, in line with the global trend, as persistent weakness in downstream demand from sectors like caprolactam and coatings coincided with sufficient regional availability and limited export activity.
• Feedstock Benzene prices trended lower over the quarter, mirroring international benchmarks. This decline was driven by subdued crude oil fundamentals and healthy supply levels, resulting in reduced production costs for Cyclohexane and contributing to bearish market sentiment.
• Production rates at Benzene Dehydrogenation (BDH) units were scaled back by regional producers aiming to balance supply with sluggish offtake. Despite these cuts, overall availability remained ample due to weak procurement activity and conservative purchasing behavior across the value chain.
• Demand fundamentals remained soft, with downstream industries such as nylon, caprolactam, and paints and coatings operating at reduced rates. Construction and automotive sectors showed only marginal activity, offering little support to consumption volumes.
• In July 2025, the Cyclohexane Price Index in North America held largely stable, as market participants maintained a wait-and-see approach. While production discipline and low inventory levels provided some price support, the lack of strong end-user demand and stagnant export volumes limited any upward momentum.
Why did the price of Cyclohexane change in July 2025 in North America?
The price Index of Cyclohexane across the North American market was assessed to have been stable due to:
Balanced Supply and Demand:
Production rates remained controlled, with many Benzene Dehydrogenation (BDH) units operating at reduced capacity to manage oversupply concerns. This helped match the persistently weak, but steady, demand, particularly from downstream sectors like caprolactam, nylon, and coatings.
Weak but Consistent Downstream Demand:
While demand remained sluggish across sectors such as construction, automotive, and paints & coatings, it did not deteriorate further. Contractual obligations and short-term restocking kept a floor under demand, preventing further declines in the price index.
Stable Feedstock Costs:
Benzene prices showed limited volatility in July following earlier declines in Q2. With no major cost push or pull from feedstock trends, Cyclohexane producers maintained existing price levels rather than making aggressive adjustments.
Limited Export Activity:
International trade flows remained slow, particularly between Asia and North America/Europe. This lack of cross-regional price pressure contributed to local price stability in most markets.
Cautious Market Sentiment:
Buyers largely adopted a wait-and-see approach, avoiding speculative purchases amidst economic uncertainty and uncertain demand recovery. This kept procurement volumes moderate and helped maintain a stable pricing environment.
Europe
• The Cyclohexane Price Index in Europe registered a sharp 21.5% quarter-on-quarter decline in Q2 2025, weighed down by persistent demand weakness and ample regional supply.
• Subdued demand across key downstream sectors—notably caprolactam, nylon, construction, and automotive—was the dominant factor behind the price slump. Operating rates at caprolactam units declined to around 63.78% in May, with new construction orders in Europe contracting for the 37th consecutive month, further curbing offtake.
• Feedstock Benzene prices continued their downward trajectory, with the April contract falling by EUR 179/MT and May witnessing a further drop of EUR 84/MT. While this reduced production costs, the weak pricing support from feedstocks failed to stabilize the Cyclohexane Price Index amidst poor downstream demand.
• Suppliers actively liquidated backlogged inventories at discounted prices throughout Q2 to counter oversupply and slow offtake, despite low operating rates at BDH units. Export constraints due to port strikes, congestion, and Red Sea-related route closures compounded the buildup of inventories in Northwestern Europe.
Why did the price of Cyclohexane change in July 2025 in Europe?
The Cyclohexane Price Index remained stable across Europe in July 2025 due to a balance between weak demand fundamentals and restricted supply-side activity.
Downstream demand remained weak across major consuming sectors like caprolactam, nylon, and construction, limiting upward price momentum. However, this soft demand was already priced into the market during Q2, reducing the likelihood of further sharp declines.
Operating rates at Cyclohexane and Benzene production units remained low, with many producers intentionally curbing output to prevent further inventory build-ups. This production restraint helped limit oversupply and stabilized the Price Index.
Inventory levels remained high but manageable, as most carryover stocks from Q2 had already been liquidated by early July. This prevented any fresh wave of aggressive discounting in the market.
Feedstock Benzene prices showed signs of consolidation after steep Q2 declines, offering no additional cost-based support for a price drop but also not pressuring prices upward.
Logistical conditions, though still tight, did not deteriorate further—with port congestion and Red Sea-related trade route challenges largely unchanged—resulting in a steady-state supply chain environment that contributed to price stability.
APAC
• The Cyclohexane Price Index in the APAC region declined by 5.7% quarter-on-quarter in Q2 2025, largely due to persistent weakness in downstream demand and ample regional availability.
• Feedstock Benzene prices continued to exert downward pressure, with values falling sharply in April and early May due to rising inventory levels across East China ports and increased imports from South Korea. Although a slight rebound in Benzene was observed in early April, it proved insufficient to reverse the broader bearish trajectory.
• Production rates at Benzene Dehydrogenation (BDH) units remained curtailed throughout the quarter, ranging between 58–67%, as suppliers attempted to manage inventory backlogs and limit oversupply. However, the presence of high stock levels and smooth logistics flows ensured material availability remained ample across the Chinese and wider APAC market.
• Demand for Cyclohexane remained sluggish throughout Q2, with weak offtake from key downstream sectors such as caprolactam, adipic acid, and paints and coatings. In particular, the construction sector in China continued to underperform amid ongoing structural issues, as reflected in a 23% YoY decline in home sales during June.
• The Cyclohexane Price Index remained stable in July 2025 across the APAC region due to a temporary equilibrium between reduced production rates and persistently weak but steady demand. Cautious procurement behavior, moderate inventory replenishment, and limited weather-related logistical disruptions helped maintain pricing stability despite the absence of strong demand-side support.
Why did the price of Cyclohexane change in July 2025 in APAC?
Cyclohexane price index across APAC rose due to supply-side tightening was a key driver, as producers across China operated BDH (Benzene Dehydrogenation) units at reduced rates throughout June and early July to manage inventory and preserve market balance, which led to lower spot availability and upward price pressure.
Localized flooding and weather-related disruptions in Eastern and Southern China temporarily affected transportation and logistics networks, causing shipment delays and constraining the timely delivery of material—contributing to tighter regional supply.
A modest rebound in downstream demand, particularly from caprolactam and engineering plastics manufacturers, helped lift sentiment. Additionally, a slight improvement in China's Construction PMI (rising to 52.8 in June) suggested a tentative recovery in construction activity, boosting short-term demand for Cyclohexane derivatives.
Stable to slightly rising feedstock Benzene prices provided some cost-push support, especially as crude oil values showed mild volatility, and Sinopec maintained price stability for Benzene after previous cuts in May.
Export activity showed tentative signs of revival, especially to Southeast Asia, where easing of the monsoon impact and inventory replenishment needs supported increased inquiries—further contributing to the upward shift in the Cyclohexane Price Index during July 2025 in the APAC region.
For the Quarter Ending March 2025
North America
In Q1 2025, the North American cyclohexane market saw a quarter-on-quarter price rise, mainly fueled by higher benzene prices and sustained demand from the automotive and textile industries. Early in the quarter, prices increased as crude oil futures gained strength and market sentiment improved, raising production costs. Additionally, the prospect of rising inflation, driven by potential import tariffs under President Trump’s administration, added pressure on prices. On the supply side, stability returned after the ILA and USMX reached a six-year labor deal, easing concerns over port disruptions.
By mid-quarters, operations had recovered from Winter Storm Enzo. However, the announcement of a 25% tariff on goods from Mexico and Canada introduced uncertainty. The delay in implementing the tariff prompted preemptive purchases, with importers securing overseas cyclohexane to avoid future price hikes, which further pushed prices up.
Towards the end of the quarter, cyclohexane prices continued to rise, supported by a rebound in U.S. manufacturing activity and higher vehicle sales, boosting downstream demand. Although benzene costs eased, continued procurement activity and strong economic momentum helped maintain price stability in the market.
Europe
In Q1 2025, cyclohexane prices in the European market dropped by approximately 7.4%, primarily due to ample supplies and weak demand. In January, market activity remained sluggish, with reduced production rates as producers sought to counteract negative market sentiment. The holiday season further dampened procurement activity, while supply disruptions in Belgium due to Port of Antwerp maintenance led to a temporary halt in exports, contributing to oversupply. Construction activity also saw a significant decline, impacting overall demand. In February, although cyclohexane contract prices rose by EUR 2/MT, suppliers struggled to pass on these increases to downstream buyers. The market remained characterized by sluggish demand and ample supplies, with production costs edging upward due to a 4.5% rise in benzene prices. Demand from the construction and automotive sectors continued to lag, and Asian exporters showed limited interest in rerouting material to Europe. By March, production costs softened as benzene prices fell by 2%, but cyclohexane prices remained stable due to moderate supply. Continued weak demand from the construction and automotive sectors, coupled with logistical challenges, kept market conditions subdued.
APAC
In Q1 2025, the APAC cyclohexane market saw a primarily bullish trend, with prices rising by approximately 4.6%. Initially, prices increased by around 6%, but later fell by 1.5%. In January, the market faced downward pressure from a 3.3% drop in benzene prices, which reduced production costs for cyclohexane. However, low production levels, especially in China due to plant shutdowns, led to limited supplies and contributed to price increases. Demand remained moderate, with sluggish activity in the caprolactam and paints sectors. Despite this, some suppliers restored the upcoming Lunar New Year, partially boosting prices. February saw stable supplies, with Chinese producers relying on existing inventories. While benzene prices rose by 1%, cyclohexane production remained low, keeping pressure on production costs. Export activity to Southeast Asia helped maintain market circulation, although demand from the paints and coatings industry remained weak, despite economic stimulus measures. By March, the oversupply of benzene further lowered cyclohexane production costs. Prices remained stable as producers kept production curtailed, but demand showed some signs of improvement, particularly from the construction sector. However, a full recovery was not expected in March.
For the Quarter Ending December 2024
North America
The North American Cyclohexane market experienced a largely bearish situation during the period, driven by subdued demand conditions from the paints and coatings industries and a reduction in production costs, as indicated by the decline in feedstock Benzene prices. Construction spending also remained weak, further contributing to unfavorable procurement activities.
U.S. suppliers were reported to be utilizing existing inventories during the hurricane season as demand conditions remained stagnant. Export conditions were largely unfavorable due to strikes between the International Longshoremen's Association (ILA) and United States Maritime Alliance (USMX), which led to inventory accumulation at ports and prompted a decline in prices.
Supplies across the inland U.S. market improved as the market wound down for the festive holidays, adding further downward pressure on prices. Towards the end of the quarter, U.S. suppliers were actively liquidating inventories amid concerns over year-end tax repercussions and potential inventory devaluation.
Europe
The European Cyclohexane market witnessed a predominantly bearish trend during the final quarter of 2024, with prices experiencing a significant decline of approximately 18%. This substantial price drop was primarily attributed to the easing costs of feedstock Benzene, which directly influenced the production economics of Cyclohexane. Additionally, market dynamics were shaped by a consistent oversupply, as ample inventories combined with limited production outages continued to exert downward pressure on market prices throughout the quarter.
Export conditions remained challenging, further dampening market sentiment. The arbitrage window for Cyclohexane imports and exports to and from Europe remained firmly closed, restricting opportunities for external trade. Moreover, logistical challenges added to the market's difficulties, as several major European ports were undergoing maintenance, disrupting inland trading activities and delaying the movement of goods. These disruptions, coupled with subdued demand from downstream industries, exacerbated the bearish outlook for the Cyclohexane market.
As the year drew to a close, the market continued to be oversupplied. Suppliers increasingly focused on liquidating their inventories and clearing out warehouses to manage their year-end stock levels. This push to reduce inventories contributed further to the downward trajectory of prices. Despite the prevailing bearish environment, some producers attempted to counteract the falling prices by adopting strategic measures such as reducing their production run rates. This effort was aimed at slowing the supply influx and lending some stability to the market.
However, these attempts were largely insufficient to reverse the overall market sentiment. The combination of persistent oversupply, logistical hurdles, and unfavorable export conditions meant that the European Cyclohexane market closed the year in a state of continued price weakness.
APAC
The Chinese Cyclohexane market experienced an overall bearish trend during Q4 2024, with prices depreciating by approximately 10%. This decline was largely driven by oversupplied conditions in the feedstock Benzene market, which exerted significant downward pressure on Cyclohexane prices. Major feedstock Benzene producers across the Chinese market, including Sinopec China, were reported to have reduced Benzene prices by Yuan 100/MT between October and November 2024. This reduction directly eased the production costs of Cyclohexane, further reinforcing the bearish market situation.
Despite the reduction in feedstock costs, Cyclohexane production levels remained relatively low. This was attributed to the reduced operating rates of Benzene Dehydrogenation Units, which created localized supply constraints and exerted occasional upward pressure on the market. However, these factors were insufficient to counteract the broader bearish momentum driven by high inventory levels and subdued demand.
Towards the end of the year, liquidation of inventories became the dominant activity in the Cyclohexane market. Suppliers prioritized emptying their warehouses to manage stock levels, resulting in abundant supply in the domestic market. This oversupply significantly contributed to the continued depreciation of prices.
Additionally, export activity to Europe remained muted as the year came to a close. The lack of significant export opportunities further exacerbated the oversupply conditions within the Chinese market, compounding the bearish outlook for Cyclohexane. As a result, the market closed the year with ample supplies, weak demand, and continued price depreciation, reflecting the challenging conditions faced throughout Q4 2024.
For the Quarter Ending September 2024
North America
In North America, Cyclohexane prices were significantly impacted by a steep decline of approximately 16% in the prices of feedstock Benzene, which eased production costs for Cyclohexane manufacturers. Throughout this quarter, the market exhibited a bearish trend, driven largely by sluggish demand conditions from downstream industries such as paints and coatings, as well as textiles. Despite several plants in the Benzene market shutting down due to the ongoing hurricane season, supplies of Cyclohexane remained abundant. This oversupply was exacerbated by unfavorable export conditions toward the end of the quarter, largely influenced by strikes organized by the International Longshoremen's Association (ILA). These strikes created additional logistical challenges, complicating an already strained supply chain and leading to delays in shipments. The ongoing hurricane season further contributed to operational difficulties, disrupting production in critical manufacturing areas across the U.S.
As a result, many manufacturers struggled to maintain consistent output levels. Additionally, the downturn in the construction sector negatively affected exports to key European markets, resulting in a supply glut of Cyclohexane. This combination of factors created a challenging market environment, where despite the reductions in feedstock costs, the sluggish demand and logistical complications kept Cyclohexane prices under pressure.
Overall, the situation highlighted the interconnected nature of supply chain dynamics and market conditions, illustrating how external factors like weather events and labor strikes can significantly influence pricing and availability in the chemical market.
APAC
Throughout Q3 2024, the APAC region saw a downward trend in Cyclohexane prices, with China experiencing the most significant fluctuations. Several key factors contributed to this trend, including weak demand from downstream industries like paints and coatings and fluctuations in feedstock prices, particularly Benzene. These elements fostered a bearish market sentiment, resulting in a 2% decrease compared to the same quarter last year. In China, the supply of Cyclohexane remained abundant, largely due to multiple Benzene Dehydrogenation Units (BDH Units) resuming production after maintenance turnarounds in mid-June 2024. This surplus, coupled with low procurement activity, meant that buyers showed little interest in acquiring new materials, leaving many suppliers with excess inventories.
The initial stabilization in the first week of September was largely due to weather-related disruptions, including torrential rains that increased logistics and transportation challenges. This further complicated the circulation of materials. Overall, the market reflected persistent downward trends, influenced by difficulties in the construction sector and weak demand from various industries. Seasonal factors, particularly the monsoon season affecting construction activities, exacerbated the price decline. Notably, there was a significant 15% decrease in prices from the first half to the second half of the quarter. The quarter concluded with Cyclohexane prices at USD 965/MT FOB Shanghai, indicating a negative pricing environment characterized by consistent depreciation and an overall unstable market scenario.
Europe
Throughout Q3 2024, the European Cyclohexane market experienced a consistent decline in prices, influenced by several key factors. Weak demand from downstream industries such as paints and coatings, coupled with a decrease in construction activities, contributed to the downward pressure on prices. Additionally, a notable 8% rise in feedstock Benzene prices during the quarter heightened production costs, further impacting Cyclohexane pricing. This challenging market environment led to a negative trend in pricing dynamics.
In the Netherlands, where the most significant price changes were observed, the market followed the broader European trend of decreasing prices. Seasonality played a role, with the peak rainy weather season slowing down construction activities and affecting demand. The correlation between price changes in the region and the Netherlands remained evident, reflecting a coherent pricing landscape. Compared to the same quarter last year, prices saw a 2% decrease, while the quarter-on-quarter change for Q3 2024 was recorded at -3%. Notably, the second half of the quarter saw a substantial 8% price decrease. The quarter-ending price for Cyclohexane FOB Amsterdam in the Netherlands stood at USD 1460/MT, showcasing the prevailing negative pricing sentiment.
FAQs
1. What are the primary factors influencing Cyclohexane prices?
Cyclohexane prices are primarily driven by feedstock Benzene costs, crude oil fluctuations, regional production rates (especially from BDH units), downstream demand from sectors like caprolactam, nylon, and coatings, as well as logistical dynamics and seasonal trends.
2. Why did Cyclohexane prices remain stable in July 2025?
Prices stayed flat due to balanced market fundamentals—moderate supply resulting from reduced BDH unit operating rates and weak but steady demand from downstream sectors. Stable Benzene prices and cautious buyer sentiment also contributed to the price stability.
3. How does feedstock Benzene impact Cyclohexane pricing?
Benzene is the key raw material for Cyclohexane production. Any shifts in Benzene pricing—driven by crude oil, refinery margins, or global supply-demand dynamics—directly affect Cyclohexane production costs and market pricing.
4. Which downstream sectors most influence Cyclohexane demand?
The major downstream sectors are caprolactam (used in nylon), paints and coatings, and engineering plastics. Demand fluctuations in these segments significantly affect market sentiment and pricing trends for Cyclohexane.
5. How do regional dynamics affect Cyclohexane prices?
Cyclohexane pricing varies across regions due to differences in feedstock availability, production levels, trade flows, and local demand. For instance, disruptions in Asian logistics or weak construction activity in North America can influence regional price trends differently.
