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