For the Quarter Ending March 2023
North America
The price of Cyclopentane has been fluctuating throughout the first quarter of 2023 in the US market. Due to sluggish orders from the construction and automobile industries, the price leveled out in the market. A high supply of upstream crude oil from the manufacturers and coupled with lower prices, further supported the downstream derivative markets. At the conclusion of the first quarter, new export orders had fallen for ten straight months as circumstances for overseas customer demand remained historically dismal. Market participants assert that new orders have fallen in the US market and that the demand for downstream insulating construction material, refrigerators, and other key driving factors has been low to stable.
Asia
Throughout the first quarter of 2023, the price of Cyclopentane in the Asian market showed a mixed price pattern. After the Lunar holidays, the cost of Cyclopentane saw an upward tick due to high inquiries, and the price of feedstock Benzene rose in the Chinese market. Feedstock Benzene prices inclined in China due to amid increase in the market trading activities after the spring day festival because of an increase in demand from the downstream industries and the availability of stable product inventory levels in the market. On the other hand, India has also followed the declining price trend as the upstream crude oil value decreased in the country. As per the market participants in the domestic market, demand has stable to weak, and there were limited occurrences of new orders inquired by the end-users, which resulted in bearishness in pricing sentiment.
Europe
The price of Cyclopentane fell in Europe throughout the first quarter of 2023 due to consistent supply and sufficient availability in the market. The feedstock Cyclohexane and upstream crude oil values declined and supported the petrochemical derivative markets. In addition, the latest indication that Europe has avoided the dreaded energy crisis is that natural gas prices have fallen to their lowest level in years. German exports are negatively impacted by the weak global economy while rising inflation rates negatively impact consumer spending and other commercial trading by lowering purchasing activity and sharply raising borrowing costs.
For the Quarter Ending December 2022
North America
In the quarter that ended in 2022, the price of Cyclopentane went up for the first two months, then fell in North America. The feedstock Cyclohexane showed higher value which led to the downstream derivatives in the USA market. Due to the high inflation rate and high-interest rates in the United States, the prices of petrochemical products increased during Q4. The demand from the downstream industries like Polyurethane resins and synthetic adhesives was weaker in the US market. The holiday approached in the last month of quarter four, further pressured demand and orders from the buyers. In addition, in the face of inflation, domestic consumers tended to wait and buy.
APAC
The price of Cyclopentane gradually decreased throughout quarter 4 of 2022. The feedstock Cyclohexane price fluctuated in Asia, leading the downstream derivatives to follow a similar path in the regional market. In China, the demand from the downstream Polyurethane resins and adhesives industries declined in the market. To keep COVID cases under control, the Chinese government implemented a Zero COVID policy, which slowed trading and reduced orders from end-use industries. The production rate also decreased in some enterprises due to low demand from the end-use industries and consumers. The overall demand was just the basis of need, and the market saw a wait-n-see attitude during December 2022.
Europe
During the fourth quarter of 2022, the price of Cyclopentane decreased in Europe. As a result of low demand, the manufacturers have reduced the production rate of Cyclopentane. The weak-cost pressure from feedstock Cyclohexane further decreased the price trend towards the negative direction in the European market. Demand has been severely weakened in Europe by the economic downturn and fear of recession. Most consumers were pessimistic about the region’s economy during quarter 4. The supply has been eased, and the port congestion has been improved in Europe. During December, the manufacturers were selling their products at an offered price due to year-end destocking sales across Europe.
The price of Cyclopentane observed declined in North America throughout the third quarter of 2022. Weak cost pressure from feedstock Cyclohexane contributes to the price movement of Cyclopentane in the region. Demand from the downstream refrigerator industry was weak, and poor purchasing orders from consumers decreased the negative price trend. The high inventory from the traders constrained the price of Cyclopentane. The high rate of inflation has dampened demand from the Cyclopentane industries. At the same time, orders from the overseas market remained weak due to consumer sentiment uncertainty.
APAC
In the Asia Pacific, the Cyclopentane price saw mixed sentiments throughout the third quarter of 2022. The weak cost pressure from the upstream Cyclohexane supported the price of Cyclopentane in the Chinese domestic market. Weak demand from the downstream industries and sufficient supply from the traders. In India, the price decreased in September due to high consumption from the end-use industries like refrigerators due to the festive season in the upcoming months. The more inquiry about the product and high orders, traders raised the price of Cyclopentane in the Indian market. The cost of Cyclopentane hovered around USD 1682/MT on a FOB Shanghai basis during the quarter ending.
During the third quarter of 2022, the price of Cyclopentane fluctuated in the European market throughout Q3. The weak demand from the downstream industries and stagnant consumer orders curbed the price movement. The inventory level from the manufacturers was high, and there was abundant availability of the product in the market. However, the natural gas prices were high, but the cost of Cyclopentane declined due to weak market sentiments. The consumers were reluctant to buy a product due to high natural gas prices and other commodities prices increasing in the region.
