For the Quarter Ending September 2021
North America
The domestic market price of Cyclohexane and Cyclopentane demonstrated an upward trend in the North American region during Q3 2021 due to disrupted supply of upstream Benzene. In terms of demand, after the resumption of operations by several manufacturing units, an increment in the demand was observed from the downstream sectors. Traders reported difficulties in translating high raw material cost to the end consumers while limited container availabilities pressured export volumes during the quarter. Cyclohexane prices gained considerably in Q3, taking cues from strong upstream pricing and tight market supplies.
Asia
The prices of Cyclohexane and Cyclopentane witnessed a significant rise in the Asia Pacific region during the third quarter of 2021. After ease in pandemic related restrictions in India, industrial activities ramped up and the production of Cyclohexane significantly improved in Q3. The price of Cyclohexane CFR Kandla (India) and Cyclopentane CFR JNPT (India) was assessed at USD 1096/MT and USD 4147/MT respectively in September. Traders reported that they have faced difficulties in exports to Europe due to crippling container availabilities, which resulted in piled up inventories, that eventually pushed down pricing in the country. While in China, the prices of feedstock Benzene shot up in Q3 due to the limited availability of raw materials in the country.
Europe
The overall market outlook experienced an upward trajectory across the European region in Q3 2021. The prices of Cyclohexane and Cyclopentane observed an upward trend in the first half of Q3 cue to limited production and constrained overseas supply. Cyclohexane price Ex-works Nuremberg (Germany) escalated from USD 1155 to USD 1180 per MT in the 3rd quarter. Furthermore, the future price assessments of Cyclohexane and Cyclopentane settled on the back of decreasing price trend of feedstock Benzene.
For the Quarter Ending June 2021
North America
Cyclohexane and Cyclopentane prices witnessed gains till the end of May, due to disrupted upstream Benzene supply across USA since February. Several refineries resumed their operations to satisfy the overall demand for Benzene from downstream derivatives segment, while some of them extended turnarounds analysing the damage caused due to winter storm. On the demand perspective, demand for Cyclopentane and Cyclohexane moved with a slow pace across the region. Therefore, prices of Cyclohexane increased till the end of May and declined later, which ultimately settled at USD 1280/MT in the last week of June.
Asia
Asian market showcased mixed sentiments for Cyclohexane and Cyclopentane during this quarter. In India, prices of Cyclohexane fluctuated with import activities from Asian countries like Thailand, as several countries side lined India under the fear of catching contagion. As soon as the imports improved in the country, prices of Cyclohexane started declining and reached USD 1290/MT during June in India. While in China, prices of feedstock Benzene soared during this quarter due to limited availability in the country.
Europe
Tights supply activities of Benzene across Europe during this quarter led to a rise in prices of downstream derivatives across the region. Initially during April, Suez Canal blockage also impacted the availability of Cyclohexane in Europe, as trade activities between Middle East and Europe were delayed for more than a week. Therefore, eventually a price hike in both the products was observed during Q2 2021 in Europe. Prices of downstream derivative products of Benzene including Cyclohexane and Cyclopentane rose across the region due to prolonged tight supply.
For the Quarter Ending March 2021
North America
The North American market experienced mixed sentiments for both Cyclohexane and Cyclopentane, while one faced higher demand, other experienced slow offtakes throughout the quarter. Demand for Cyclohexane remained high from downstream caprolactam sector, although inadequate supply amidst high demand made the prices to follow upward trajectory from USD 1225 per MT to USD 1315 per MT during March. During this timeframe various plants across Texas remained idled and almost 100% supply snoozed for this period due to freezing fallout.
Asia
Similar scenario was observed in the Asian markets where demand for Cyclopentane remained low, on the other side Cyclohexane observed firm demand from domestic downstream sector. Demand for Cyclopentane remained firm in Chinese market and encountered a steady rise in its prices. The FOB price of Cyclopentane rose from USD 857 per MT (January 2021) to USD 1037 per MT (March 2021). While the demand for Cyclopentane remained consistently low from downstream refrigerant sector and hence prices dropped down from USD 2145.4 per MT during January to USD 2127.3 per MT during March 2021.
Europe
The European market observed moderate to low demand for both Cyclohexane and Cyclopentane from downstream sectors during this quarter. Although the export demand from Asia for Cyclohexane remained firm due to lower exports from North America region. Meanwhile, the feedstock availability also remained halted across the region due to similar reasons. Prolonged shutdown over several plants of the region also affected the price and supply activity for Cyclohexane and Cyclopentane during this timeframe.
For the Quarter Ending December 2020
Asia
Cyclohexane and Cyclopentane demand surged in the global market in Q4 2020 buoyed by the rising demand for Cyclopentane as refrigerant and blowing agent in insulation and refrigeration applications. With the onset of Covid-19, the demand for foam-blowing agent in the production of Polyurethane, used in the manufacturing of refrigerators, freezers increased in the final quarter due to the consistent increment in demand for the storage of surgical devices and vaccines. Thus, despite of strict rules and regulations, the demand for Cyclopentane was remained stable to firm due to rising demand in pharmaceuticals, healthcare and food and beverage industry. Consequently, its prices also averaged at around USD 2014 per MT CFR JNPT in the quarter ending December 2020.
Europe
With the stabilizing demand in the automotive and textile industry, market sentiments for Cyclohexane remained stable in Q4 2020. The supply for cyclohexane was ample in Q4 2020 as compared to Q3 2020 with a smaller number of scheduled turnarounds in plant units followed by its feeble demand. Over time, restocking of material by the end-user industries was observed that increased the demand by the end of the quarter. Prolonged turnarounds at downstream plants also affected the demand in Q4 2020
North America
Consistent increment in the prices of Cyclopentane and Cyclohexane was observed in Q4 2020 due to the increased demand from textile, paints and coating industry. With economy paving its way back, the demand gained stability while the supply was observed to be initially low. As the prices of upstream crude increased in Q4 2020, the manufacturing cost subsequently increased leading to a rise in prices of Cyclohexane and Cyclopentane. Prices of these two products are expected to remain firm in the near term as the prices for upstream crude are anticipated to continue an upward trajectory.
