For the Quarter Ending March 2023
North America
The prices of Cyclohexanone have witnessed a volatile price trend in the US market. The drop in demand from the downstream chemical fiber industries has reduced the market value of Cyclohexanone. However, escalating upstream Benzene prices and improving downstream demand fundamentals have reinforced the market fundamentals. Furthermore, towards the end of the first quarter, the Cyclohexanone supplies were sufficient, and the operating rates of the manufacturing firms were regular. On the other hand, the financial sector worries have pressured the US economy on a broader level. The goods have been actively moved, and the rates for shipping containers from Asia to the US dropped as East and West Coast ports experienced a significant decrease in congestion. Therefore, considering the aforementioned reasons, Cyclohexanone FOB Texas prices were concluded at USD 1681 per ton in Q1-end.
APAC
At the start of Q1, the prices of Cyclohexanone remained buoyant in the domestic region of China. The production cut brought on by the limited workforce amid the Spring festival holidays has led to positive developments in the price realizations of Cyclohexanone. The COVID restriction has been lifted, and the transportation and logistics were unimpeded, as no supply-chain bottlenecks were reported. The manufacturing activities were also reinforced, and the market players were optimistic about the demand outlook from the downstream chemical fibers and solvent industry. However, no significant inquiries were observed from the domestic and overseas markets, leading to a reduction in the market value of Cyclohexanone toward the end of the first quarter. The ChemAnalyst database shows that Cyclohexanone FOB-Qingdao prices were settled at USD 1417 per ton in March.
Europe
Limited procurement from the downstream Adipic Acid industries has pressured the market sentiments of Cyclohexanone in the German market. Tight monetary conditions, rising interest rates, and workforce shortages all these factors have a cumulative effect on the price realizations of Cyclohexanone. However, the ease in input cost inflation has led to a decline in the production costs of several petrochemicals, including Cyclohexanone, in the domestic region. The manufacturers opted for a production cut for the sustenance of their profit margins as The inventories of Cyclohexanone in the domestic region were sufficient to cater to the inquiries from the terminal market. Overall, the supply chain has functioned normally in the given time frame, and the unwillingness of downstream manufacturers to build up stocks has been reported. Consequently, Cyclohexanone FD Hamburg prices averaged USD 1824 per ton at the end of the first quarter.
For the Quarter Ending December 2022
North America
In the US market, Cyclohexanone prices dropped throughout the last three months of 2022. The decline in WTI crude oil prices translated into a drop-in feedstock Benzene, resulting in soft cost support for Cyclohexanone. Meanwhile, demand dynamics remained sluggish as consumer sentiment continued to stay on a downward slope as recessionary fears and high-interest rates culminated in a decline in manufacturing and industry activity duly signified by the sharp plunge in US PMI in the last quarter. Furthermore, supply dynamics remained firm as the inventories reported by the market participants were on the higher side, while drop-in freight charges and sluggish consumption rates in Asia prompted Asian exporters to send Cyclohexanone onto the US shores. Hence, as of December 2022, Cyclohexanone prices were assessed at USD 1688 per MT.
APAC
Cyclohexanone prices declined consistently throughout the quarter in the Chinese domestic market due to weak demand dynamics, sluggish cost support, and ample material availability in the market. Feedstock Benzene prices constantly dropped in the last quarter due to a sharp drop in crude oil prices. Downstream Caprolactam producers reported ample material availability, thus limiting the demand for Cyclohexanone. Meanwhile, some end-use enterprises also use Cyclohexanone in the spot market, further pressuring the market dynamics of Cyclohexanone. Thus, as of December 2022, Cyclohexanone prices were assessed at USD 1356 per MT on a FOB basis. Oversupply of Cyclohexanone mainly dominated the market, leading to buyers having the upper hand in the negotiations.
Europe
In the European market, Cyclohexanone prices showed mixed sentiment during the last quarter of 2022. In the first half of the quarter, firm natural gas prices coupled with stable crude oil prices resulted in strong cost pressure on Cyclohexanone which culminated in a price increase amid stable demand dynamics from downstream Caprolactam and other value chains. However, in the second half of the quarter, Cyclohexanone prices declined sharply as energy prices plunged drastically while demand dynamics deteriorated amid soft consumer sentiment further pressured by holidays. Furthermore, cheaper imports the European ports from the Asian market further contributed to the declining prices of Cyclohexanone in the European markets. Therefore, Cyclohexanone prices were assessed at USD 1944 per MT on FD basis in Q4 2022.
For the Quarter Ending September 2022
North America
The Cyclohexanone market witnessed a continuous drop in the US domestic market throughout the third quarter of 2022. The price dropped by 0.9% and was recorded at USD 2120/ tonne FOB Texas in the week ending 12th August. The fall in the Cyclohexanone price was backed by the declining upstream Crude values and the feedstock Cyclohexane. Moreover, the demand from the terminal side was weak. The poor purchasing activities from the importing countries dropped, resulting in the stockpiling of the product in the US domestic market. Thus, the manufacturers offered a discounted price to sell off the existing products. Additionally, the requirement for Cyclohexanone dropped from the downstream textile, construction, and other sectors due to poor consumer consumption.
Asia
Asia showcased demand dullness for Cyclohexanone during the third quarter of 2022. Following the declining price trend of upstream Crude, the Cyclohexanone market continued to drop in China. Due to the sufficient availability of upstream Crude, its price fell, further influencing the feedstock Benzene and Cyclohexane. After the lockdown effect, the textile industries are recovering, resulting in poor demand for the downstream Caprolactam and Nylon 66. Thus, the declining production of these downstream products led to decreasing demand for Cyclohexanone. Also, the requirements from the regional markets dropped, ushering in plummeting Cyclohexanone pricing. Therefore, the exported cargo's price also fell, pulling down the Cyclohexanone market. As a result, the Cyclohexanone market settled at USD 1520/ tonne FOB Qingdao in August 2022.
Europe
Germany consistently witnessed a rise in the Cyclohexanone market for the first two months of Q3 2022 due to the continuous increase in the energy crisis. The Cyclohexanone price was hovering around USD 2320/ tonne FD Hamburg with an increment of 0.4% in August. The tight supply of natural gas from Russia has been creating havoc in the functioning of manufacturing plants. Additionally, the electricity price in Germany spiked by 2%, hitting a record high due to the reduced output from the Beznau Nuclear power plant as the Rhine river temperature is high. Also, the vessel brokers quoted high freight charges, further pushing up the Cyclohexanone pricing. Furthermore, the downstream Caprolactam prices are witnessing an optimistic trend, pushing up the Cyclohexanone values.
For the Quarter Ending June 2022
North America
During the second quarter of 2022, the price of Cyclohexanone showcased an uptrend in the US market. The price rise was backed by the increased demand from the downstream Caprolactam market. The increased purchasing of Caprolactam from the textile industry resulted in the increase in the upstream Cyclohexanone price trend. Moreover, the tight supply of Crude in the US market after the imposition of various sanctions on the Russian oil import influenced the Cyclohexanone market and ushered in the upward price movement. However, the raw material prices increased during the second quarter, supporting the Cyclohexanone pricing. In addition, the high freight charges were triggering the Cyclohexanone market in the quarter ending June 2022.
APAC
The unprecedented outbreak of COVID cases in China resulted in an oscillating price trend of Cyclohexanone prices in the Chinese market. The market closure and the weak buying activities in the domestic market affected the Cyclohexanone prices in early April 2022. Moreover, the reduced demand for Crude from the Chinese market led to the Crude price drop, negatively impacting the Cyclohexanone price. Later, in April and May, the Cyclohexanone price regained strength in the domestic market. After the May Day holidays, the domestic market resumed ushering in healthy buying activities. Moreover, the downstream caprolactam production increased further, increasing the Cyclohexanone pricing.
Europe
In the second quarter of 2022, the Cyclohexanone market witnessed an upward trajectory movement in the European region. The sanctions on the import of the Russian oil embargo brought the German market under a tight supply of Crude due to the limited availability of the product. Due to its use to produce Caprolactam, the increasing demand for Cyclohexanone from the regional market triggered Cyclohexanone pricing. Moreover, the high fuel costs and the freight charges also inflated the cyclohexanone prices. In addition, the export charges of Cyclohexanone rose as a result of the limited availability of the product in the domestic market.
For the Quarter Ending March 2022
North America
Cyclohexanone prices observed a marginal rise in North America during the first quarter of 2022. The disruption caused by the Russia-Ukraine conflict resulted in the oil and gas crisis. Firm upstream crude and feedstock Benzene values impacted the Cyclohexanone production cost. Moreover, robust demand for downstream paints & coatings, varnishes, lacquers, and the production of Caprolactam from end-use industries pushed up Cyclohexanone prices. In addition, the rising freight costs have aided Cyclohexanone's price increase in the domestic market of the USA. The prices of Cyclohexanone in the USA settled at USD 1950 per MT Texas with an inclination of 0.5% from February to March 2022.
Asia Pacific
In Asia Pacific, Cyclohexanone prices rose continuously during the first quarter of 2022. Some of the production plants were forced to close due to a surge in Covid cases in China, resulting in increased Cyclohexanone costs in the nation since then. Government's implementation of the zero-covid policy to curb the spread of a highly infectious strain of the coronavirus kept Chinese industries and businesses shuttered for the whole quarter. In addition, rising upstream prices further affected the Cyclohexanone market to showcase an upward trajectory movement. However, in the Indian market, the cost of Cyclohexanone was projected at USD 2295 CFR JNPT in March.
Europe
Cyclohexanone prices showcased marginal upward movement in the first quarter of 2022 owing to the upsurge in crude prices, which affected the price of feedstock Benzene, influencing the Cyclohexanone market. Rising fuel prices had a severe impact on the freight and transportation charges, forcing the manufacturers to increase the price in order to protect their margins. Thus, Cyclohexanone prices in Germany averaged at USD 2040 per MT FD Hamburg in the quarter ending March 2022.
For the Quarter Ending December 2021
North America
Consumption for Cyclohexanone marginally firmed in the manufacturing of dyestuffs, textile dyestuff, polymers, and others in comparison to Q2 and Q3 2021. However, the demand for Cyclohexanone remained low with respect to Q4 2020 due to uncertainty in the consumption of solvents which appreciably contributed laying a negative impact on its prices as well. Majority of the companies have been producing this product for captive use rather than trading. Ample availability of feedstock in Q4 eased it manufacturing cost and led to a marginal drop in its prices.
Asia
Cyclohexanone prices witnessed steep highs and lows in the Asian market due to volatile demand in the region. Cyclohexanone is primarily imported from China, and the price increased due to a combination of halted production in China and increased freight charges, putting an unsustainable load on supplies to India. In the meantime, downstream sectors showed signs of improvement, and traders were hoarding cargoes in an anticipation of a large increase in demand in the coming weeks. Even though the demand for solvents in India remained volatile, traders were heard stockpiling inventories under anticipation of a shortage in supply by the next quarter. Cyclohexanone CFR prices in India averaged at USD 2087 Ex-Kandla in December.
Europe
Cyclohexanone demand in the European region remained nearly stable during a large party of Q4 due to seasonal slowdown in the demand for solvents. Backed by the feeble demand and high energy prices, Cyclohexanone production also tumbled in comparison to its other available alternatives. The demand is expected to stabilize by the end of Q1 2021 due to a likelihood of rise in demand from Adipic Acid segment.
For the Quarter Ending September 2021
North America
In North America, Cyclohexanone market experienced an uptrend in the third quarter of 2021 backed by sturdy demand from the downstream Adipic Acid manufacturers. Moreover, spike in the feedstock Cyclohexane prices also aided the pricing trend of Cyclohexanone in the region. In addition, production rates as well as the supply chains were disrupted due the impact of Ida hurricane which made landfall in the USA in August end that consequently slumped the availability of the product and hence, pushed up the values of Cyclohexanone in this timeframe.
Asia
In the third quarter of 2021, Cyclohexanone market reported mixed sentiments in Asia. Stability in the overall prices of Cyclohexanone was registered backed by the ample supply of the product as industries improved their production rates post Covid. In India, an improvement in the offtakes from the downstream manufacturers was observed. To cope up with the regional demand local manufacturers ramped up their production rates in this quarter. However, towards the end of the quarter, local traders faced disruption in the export of upstream Cyclohexane which resulted into the pile-up of inventories that pushed down its prices in India. Thus, ample supply and downfall in the prices of feedstock led to the decline in the values of Cyclohexanone, thus its prices drifted from USD 1744.42 per MT to USD 1692.99 in July to August timeframe. However, marginal rise was observed in the prices of Cyclohexanone backed by high freight charges, in September. Cyclohexanone monthly average prices were assessed at USD 1742.55 per MT. Therefore, in India minimal change was observed in the overall prices of Cyclohexanone during this quarter.
Europe
In Q3 2021, Cyclohexanone market remained tight across the European region backed by the limited supplies of feedstock Benzene. European Cyclohexanone market emulated the market trend of North America as a major part of feedstock is imported from the USA. Price trend traced the values of upstream Benzene that consequently pushed the values of Cyclohexanone in the region. In addition, exorbitant freight charges and shortage of shipping containers also influenced the prices of Cyclohexanone in this quarter across the Europe
For the Quarter Ending June 2021
North America
Cyclohexanone prices climbed steadily throughout the quarter in USA, supported by firm demand from downstream sector and rising feedstock prices. During this quarter, feedstock Cyclohexane prices rose consistently, pushing up the prices of downstream derivative Cyclohexanone in the country. Moreover, shortage of upstream Benzene also played an important role behind this steep rise in prices of its downstream derivatives in USA. In addition, it was observed that, after successful vaccination drive in USA, the demand for Cyclohexanone from textile segment increased effectively in the country. Therefore, prices kept rising throughout the quarter, and were accessed at USD 2100/MT during second half of April in USA.
Asia
Cyclohexanone prices varied country over country in the APAC region, during Q2 2021. In China, prices demonstrated regular rise throughout the quarter, backed by soaring upstream Benzene prices. While in India, prices fluctuated due to logistical issue and under the influence of second wave of pandemic in the country. In May and June, prices tumbled as the aftereffects of pandemic narrowed down the consumption of Cyclohexanone in domestic textile segment. Therefore, after declining for weeks under dull demand fundamentals, Cyclohexanone prices drifted to USD 1941/MT in the last week of June in India.
Europe
In Europe, supply activities of upstream Benzene remained tight throughout the quarter, due to prolonged disturbed supply activities from USA and other logistical hinderance. Feedstock Cyclohexane prices were heard rising during the meantime, taking cues from soaring regional Benzene prices, which eventually shot up the price of Cyclohexanone across the region. In addition, Suez Canal blockage also created the short-term shortage of feedstock Cyclohexane across the region during the first two weeks of April, which also influenced the prices of Cyclohexanone in the country.
For the Quarter Ending March 2021
North America
The North American market encountered a severe shortage of feedstock chemicals to produce chemical products, under devastating weather conditions. Several plants remained idle either due to weather conditions or due to the shortage of upstream chemicals. Meanwhile, Cyclohexanone had a firm demand from the downstream sectors like Adipic Acid, despite of the fact that there were several plants outages observed during this period. Under critical material shortage, price of Cyclohexanone rose effectively from USD 1040/MT and reached USD 1120/MT during January-March timeframe.
Asia
The Asian market faced back-to-back hikes in the Cyclohexanone prices during the first quarter. Demand for Cyclohexanone from the downstream Adipic Acid producers remained stable, strengthened by the buoyant Nylon industry. Firming crude oil, battered with huge hike in container and freight cost, supported the prices of Cyclohexanone across Asia. Cyclohexanone gained by double digits, surging by more than 23% in the Indian market and nearly 67% in the Chinese market.
Europe
Demand for Cyclohexanone in the European market remained low as operational cuts at the downstream sectors dented the overall dynamics. In Germany, several plants outages were reported due to unfavourable weather conditions forcing some plants to remain shut including those manufacturing Adipic Acid, which reduced the requirement of Cyclohexanone. In addition, transportation lags also impacted the regional availability of feedstock chemicals. Despite of low demand, prices showed some improvement during the quarter due to shortage of imports from the USA.
For the Quarter Ending December 2020
North America
With the ease in lockdown in the USA and Canada, the demand for Cyclohexanone increased in the manufacturing of dyestuffs, textile dyestuff, polymers, and others in comparison to Q2 and Q3 2020. Major increase in demand came from increased consumption for Nylon6 and Nylon 6, by the end quarter 2020. Besides, the demand for Cyclohexanone was also observed to have increased in Q4 2020 due to high demand as a solvent which appreciably contributed in laying a positive impact on its prices as well. Influenced by the appreciable demand, supply for Cyclohexane also increased as the manufacturing companies like ExxonMobil and LANXESS decided to increase the operating efficiency of their plants. Majorly, the companies are producing this product for captive use rather than trading.
Asia
Due to fluctuation in prices of upstream crude and benzene, the prices of Cyclohexanone remained unstable in Q4 2020. The demand for Cyclohexanone increased by December 2020 due to appreciable market fundamentals in the plastic and textile industries in China, India, Japan, and several other Asian countries. With the production of downstream Adipic Acid and Caprolactam increasing due to rising demand, the demand-supply gap of the products increased by the end of December 2020. Prices of Cyclohexane were observed to have increased from an average of USD 884 per MT in October to USD to USD 1042 per MT in December in the Southeast Asian market.
Europe
Demand for cyclohexanone in the European region remained stable during a large party of Q4 due to the availability of cheaper alternatives i.e., cyclohexane and cyclohexanol in the market. Amidst continued lockdowns in several parts of Europe, the demand was observed to be on the lower side. Backed by the feeble demand, production of Cyclohexanone also tumbled in comparison to its other available alternatives. The demand is expected to stabilize by the end of Q1 2021 due to an expected rise in demand in the manufacturing of Adipic Acid.
