For the Quarter Ending June 2021
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.
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.
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
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.
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.
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
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.
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
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.