For the Quarter Ending June 2022
North America
During the second quarter of 2022, Cyclohexane and Cyclopentane witnessed an upward trajectory throughout the quarter. A tight supply of raw materials and demand from the downstream industries further increases the cost of Cyclohexane in the region. USA stockpiles worry about a tight supply of crude oil, which has a weaker global economy and demand. The high usage of Cyclopentane in refrigerators, insulations, foam blowing agents, and chemical solvents led to the price in the region. Order from the downstream industries and surged in natural gas prices increased the operational cost of Cyclopentane and Cyclopentane.
Asia Pacific
In the second quarter of 2022, the Asian market of Cyclopentane and Cyclohexane has observed mixed sentiments in the region. The international crude oil prices soared in the region owing to the war between Russia and Ukraine. The feedstock prices steadily increased, and supply disruptions in the region further raised the price of Cyclopentane. In China, the limited supply of crude oil influenced the benzene market, and a strike by south Korean truck drivers delayed transportation of petrochemicals from port to other regions, further pressure on Cyclohexane. The price of Cyclohexane was recorded with an inclination of 4% Chinese market.
Europe
In Europe, the market sentiments for Cyclopentane and Cyclohexane price fluctuated throughout the European region. The international crude oil prices soared in the region owing to the war between Russia and Ukraine. The feedstock prices steadily increased, and supply disruptions in the region further raised the price of Cyclopentane. The war-related activities put pressure on the petrochemical commodities in the region. The Russian authorities' firm stance on trading the Ruble (Russian currency) has put pressure on supply disruptions to stabilize demand in the local market due to the upward trend in crude oil prices and the limited supply of raw materials hovering in the region. The operational cost was high due to the region's natural gas supply shortage.
For the Quarter Ending March 2022
North America
With the United States contributing around 7.95% of the world's total Cyclohexane exports, the price of Cyclohexane and Cyclopentane was spotted to be fluctuating in Q1, 2022 with prices hovering around USD 1319 and USD 1404/ton FOB Houston in the month of January. A stable increase of 0.5% was seen in the first quarter as compared to the Q4 of 2021 due to slow offtakes throughout the quarter. Although price of feedstock Benzene rose due to volatility in crude oil prices, the cost of cyclohexane and cyclopentane remained steady in the global market. Increasing product supply and decreasing raw materials maintained this condition.
Asia Pacific
During the first quarter of 2022 in Asia, China saw a fluctuation in the prices of Cyclohexane in the beginning of the quarter with prices starting at USD 1198/ton CFR Shanghai in January. A sudden spike was seen in the prices in February where an increase of 3.1% was seen, whereas an overall decrease of 4.8% was seen in Q1 in China as compared to the previous quarter and a steady growth was observed in the price of Cyclohexane and Cyclopentane in India. Due to insufficient demand from downstream paints and coatings and difficulties in exports to Europe due to crippling container availability, inventories piled up in Q1 that eventually pushed down prices in the country towards Q1 end.
Europe
In Q1, 2022 the prices of Cyclohexane and Cyclopentane witnessed an upward trajectory as compared to other regions with prices at nearly USD 1592/ton FOB Nuemberg in the month of March. Inflationary pressure and consistently high demand from the downstream polymers and insecticides sector coupled with high feedstock prices resulted in rise in the prices of Cyclohexane during the quarter. Feedstock Benzene prices consistently gained in value by taking cost support from high crude values due to which prices observed consistent gyration amidst the contradicting market factors.
For the Quarter Ending December 2021
North America
During the fourth quarter of 2021, the prices of Cyclohexane and Cyclopentane escalated in the North American region owing to the substantial rise in the values of raw material Benzene. In US, the market outlook of Cyclohexane and Cyclopentane observed an upward rally backed by the strong demand from Adipic Acid and Caprolactam manufacturing industries. Moreover, Power surge along with the lower imports from China also sent ripples to the prices of Cyclohexane and Cyclopentane in this timeframe. Besides, strong freight charges further influenced the overall pricing trend of the product in the quarter.
Asia
In Asia, the prices of Cyclohexane and Cyclopentane showcased mix emotions with the varying market sentiments from country to country throughout the fourth quarter of 2021. In China, the cost of Cyclohexane and Cyclopentane plunged in the time frame of October to November after registering record high estimates in the last quarter. In India, Cyclohexane prices attained gains in this quarter backed by the firm demand from Caprolactam manufactures. Moreover, traders tried to keep their margins wide amid strong offtakes from domestic as well as international market. However, Cyclopentane prices witnessed a downward trajectory because of lull demand from resins and rubber adhesives manufacturers. Hence, December Ex-Mumbai prices of Cyclohexane listed around USD 1307.05/MT showcasing a hike of USD 107.36/MT while Cyclopentane 95% Ex Mumbai prices were stood at 3147.59/MT witnessing a significant decline.
Europe
In Europe, the pricing trend of Cyclohexane and Cyclopentane experienced an upward trajectory backed by the spike in raw material Benzene prices and firm demand from downstream industries including Automotive, Paints and Coatings, Textile, and others. Moreover, the soaring energy prices in effect of natural gas crisis rocketed the production cost across the European region that also contributed to the pricing trend of Cyclohexane and Cyclopentane. Hence, Cyclohexane Ex-Works Nuremberg (Germany) prices stood at USD 1575/MT in the December witnessing a hike of 8% since October.
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.
