For the Quarter Ending March 2025
North America
The North American Cyclopentane market experienced notable fluctuations during the first quarter of 2025, shaped by shifting feedstock costs, demand variability, and evolving geopolitical conditions. In the early part of the quarter, Cyclopentane prices in the U.S. trended downward, primarily due to the declining prices of its key feedstock, Benzene. The reduced feedstock costs translated into lower production expenses, thereby exerting downward pressure on Cyclopentane pricing.
However, as the quarter progressed, several market-altering developments unfolded. The imposition of tariffs and emerging trade disruptions affected import flows from key exporting countries such as Canada, leading to constrained supply and a subsequent increase in procurement costs.
Additionally, the onset of the summer season contributed to a resurgence in domestic demand, particularly from the refrigerant and foam-blowing sectors, which are significant consumers of Cyclopentane. These combined factors, tightening supply due to trade limitations and seasonal demand escalation—contributed to a reversal in the price trend, marking a recovery in Cyclopentane prices towards the latter half of the quarter.
APAC
The Asia-Pacific Cyclopentane market witnessed notable volatility during Q1 2025, with India and China emerging as the most affected regions. Prices declined slightly in the early part of the quarter, primarily due to surplus material availability and a continuous drop in the prices of Benzene, a key feedstock. This resulted in reduced production costs, exerting downward pressure on Cyclopentane prices. However, as the quarter progressed, the market rebounded and maintained an upward trajectory. Domestically, the seasonal onset of warmer temperatures in the region spurred increased demand from the refrigerant and foam-blowing sectors, which are key end-users of Cyclopentane. This seasonal demand uptick was particularly evident in insulation and cooling applications. On the international front, China's continued shift towards low-global warming potential (GWP) blowing agents, in alignment with its environmental regulatory framework and sustainability objectives, significantly bolstered demand for Cyclopentane. These combined factors of seasonal domestic demand and strong international momentum contributed to the price recovery observed during the latter half of the quarter.
Europe
The European Cyclopentane market underwent notable fluctuations during the first quarter of 2025, influenced by varying feedstock costs, dynamic demand patterns, and regional geopolitical developments. At the start of the quarter, Cyclopentane prices in Europe trended downward, driven largely by a decline in Benzene prices, the primary feedstock. The resulting decrease in production costs placed downward pressure on Cyclopentane prices across the region. However, market conditions shifted as the quarter progressed. Persistent port strikes, labor shortages, and political uncertainties linked to upcoming elections moderately disrupted regional supply chains, leading to localized material shortages. These supply-side constraints began exerting upward pressure on prices. Simultaneously, the seasonal transition towards summer spurred increased demand from the refrigerant and foam-blowing industries, which are key consumers of Cyclopentane. The convergence of constrained supply and rising demand reversed the initial price trend, resulting in a steady recovery in Cyclopentane prices during the latter half of the quarter. This interplay of factors underscored the market’s sensitivity to both logistical challenges and seasonal consumption trends.
For the Quarter Ending December 2024
North America
In Q4 2024, the North American Cyclopentane market displayed fluctuating dynamics, influenced by supply shortages early in the quarter and robust international demand, particularly from India during its festive season. This initial optimism was tempered by declining prices in November, driven by reduced raw material costs such as Benzene and Crude Oil, alongside decreased production and lower energy expenses.
Elevated Cyclopentane inventories in the region further pressured prices. Persistent port tensions disrupted trade flows, causing rerouted shipments and longer tonne-miles, adding complexity to the supply chain. These disruptions led to inventory surpluses at ports, further amplifying bearish market sentiment.
Domestically, the refrigerant sector witnessed diminished demand as the seasonal peak had passed, narrowing the supply-demand gap. The combined effect of reduced production costs, rising inventories, and subdued local demand contributed to the overall downward price trend. Meanwhile, trade disruptions and logistical challenges underscored the intricate market conditions during the quarter. Despite these pressures, international demand provided partial support, preventing a sharper downturn.
Asia – Pacific
The Cyclopentane market in Asia experienced mixed price dynamics during Q4 2024, with significant developments observed in China. After a period of stability, prices declined due to a closely balanced supply-demand situation in the refrigerant sector. Although feedstock Benzene prices rose, their impact on Cyclopentane pricing was limited, given ample inventories and consistent domestic production. Seasonal year-end discounts offered by traders further contributed to the downward trend. Manufacturing activity remained strong, with sufficient stockpiles ensuring uninterrupted supply to domestic markets. Logistical challenges emerged due to Typhoon Kong-Rey, which disrupted operations at key Chinese ports such as Shanghai and Ningbo, leading to delays in distribution. Despite these setbacks, export volumes moderately recovered, driven by robust demand from India's refrigeration industry ahead of its festive season. Domestically, steady procurement activity from the refrigerant and insulation industries supported market stability. Festive-driven consumption bolstered demand, adding a degree of optimism despite logistical bottlenecks. Overall, the Cyclopentane market in Asia during Q4 2024 reflected the interplay of steady production, seasonal demand fluctuations, and external disruptions, underscoring the region’s ability to adapt to challenges while maintaining stable industrial performance. The recovery of export volumes highlighted the resilience of regional supply chains despite adverse conditions.
Europe
In the final quarter of 2024, the European Cyclopentane market experienced bearish trends, peaking in December. A combination of subdued demand from domestic and international refrigerant markets and a prolonged decline in crude oil prices contributed to the downturn. The fluctuating costs of essential raw materials, such as Benzene and Crude Oil, prompted reduced production rates, exerting downward pressure on Cyclopentane pricing. Elevated inventories in the region further amplified the bearish sentiment. Trade flow disruptions caused by intermittent labor shortages and strikes at major European ports, including Hamburg and Antwerp, compounded market challenges. These events led to rerouted shipments, longer tonne-miles, and inventory buildups at ports, adding complexity to the supply chain. This disrupted logistics strained the balance between supply and demand, causing price corrections. Overall, the market's dynamics in Q4 reflected a narrowing gap between supply and demand, with seasonal refrigerant demand tapering off and logistical constraints heightening uncertainties. These factors collectively solidified a bearish outlook for Cyclopentane in the European market by the year’s end.
For the Quarter Ending September 2024
North America
The North American Cyclopentane market experienced a series of mixed trends throughout the third quarter of 2024. Prices surged significantly during the initial two months, driven by robust purchasing activity from key sectors, particularly refrigerants and blowing sector, where Cyclopentane is widely used as a blowing agent. This heightened demand was largely seasonal, with the summer months typically seeing increased activity in refrigeration and cooling industries, resulting in a substantial rise in Cyclopentane consumption.
The early quarter price escalation was also influenced by supply shortages in both domestic and international markets. Hurricanes and severe weather conditions in the region disrupted manufacturing operations, leading to a shortfall in locally produced Cyclopentane. The impact of these natural disasters was compounded by logistical challenges, such as port congestion and shipping delays, which hampered the timely import of materials. These factors created a strained supply chain, further driving prices upward as buyers competed for limited availability.
As the quarter progressed, the situation remained tense, with supply constraints continuing to push prices higher. Th However, towards the end of the quarter, a slight price correction occurred. This decline was primarily due to a softening in downstream demand as the peak summer season ended, reducing the urgency for Cyclopentane procurement in refrigeration and foam applications. Despite the late-quarter price dip, the overall trend for the quarter reflected strong price movements, particularly in the early stages, driven by heightened demand and supply chain challenges.
APAC
During the third quarter of 2024, Cyclopentane prices in the Asian market experienced a significant surge, with China and India being the regions most affected by pronounced price fluctuations. The primary driver behind this price escalation was the robust increase in purchasing activity, particularly from key sectors such as refrigerants and polyurethane foam manufacturing, which use Cyclopentane as a blowing agent. The heightened demand was largely seasonal, as the summer months typically see increased activity in the refrigeration and cooling industries, leading to greater consumption of Cyclopentane. However, beyond strong demand, a series of external factors further contributed to the price surge. The region was impacted by severe weather conditions, including storms, heavy rainfall, and typhoons, which caused widespread supply chain disruptions. These weather-related events led to significant delays in production and transport, exacerbating material shortages in the market. In addition to these supply challenges, elevated freight charges due to logistical difficulties further intensified cost pressures. The supply-demand imbalance was most evident in China and India, where the market experienced the sharpest price increases. As a result, Cyclopentane prices in Asia reached new highs during the third quarter, underlining the critical role that both demand-side and supply-side factors played in driving the market upward. The latest quarter-ending price of USD 1840/MT of Cyclopentane FOB Shanghai in China signifies a positive pricing environment with a bullish sentiment prevailing in the market.
Europe
The European Cyclopentane market experienced sustained positive momentum throughout the third quarter of 2024. Prices surged significantly during the first two months, largely driven by strong purchasing activity from key sectors such as refrigerants and the polyurethane foam industry, where Cyclopentane is extensively used as a blowing agent. This heightened demand was primarily seasonal, as the summer months typically see increased demand for cooling solutions, particularly in refrigeration and air-conditioning systems, which boosted Cyclopentane consumption. Adding to the upward price pressure was a noticeable shortage of material during the quarter. Supply constraints became evident as the region struggled with limited availability of Cyclopentane, both from domestic production and international imports. This imbalance between supply and demand contributed to the price escalation, further intensifying the market dynamics during the quarter. However, while the Cyclopentane market showed robust demand and price growth, the broader European manufacturing sector faced significant headwinds. As the quarter progressed, manufacturing activity continued to contract, particularly as the third quarter came to a close. Key performance indicators, including production levels, new orders, employment rates, and procurement activities, all registered marked declines, with the contraction accelerating as the quarter drew to an end. This trend underscores the deepening challenges faced by manufacturers across Europe, as economic uncertainty, weakening industrial output, and sluggish market conditions weighed heavily on the sector.
For the Quarter Ending June 2024
North America
The second quarter of 2024 has been a notably dynamic period for Cyclopentane pricing in the North American region, characterized by a consistent upward trend. This increase in Cyclopentane prices can be attributed to a combination of several interrelated factors. A primary driver of the price surge has been the elevated costs of essential feedstocks, including benzene and crude oil. The increase in these raw material costs has led to higher production expenses, which in turn has pushed Cyclopentane prices upward.
Despite a relatively modest demand from the domestic refrigerant market, which typically experiences seasonal variations during the summer, the overall pricing trend remained bullish. Compounding these factors were production cuts prompted by the hurricane season in the North American region. The impact of tropical storms led to widespread flooding and significant disruptions in transportation infrastructure, which severely hampered logistics and supply chains.
Additionally, the prolonged power outages caused by Hurricane Beryl further disrupted manufacturing operations across the region, exacerbating the supply constraints. Together, these elements created a challenging environment for the Cyclopentane market in the USA, driving prices higher and highlighting the sensitivity of the market to both raw material costs and environmental disruptions.
APAC
The second quarter of 2024 has been a dynamic period for Cyclopentane pricing in the APAC region, marked by a consistent upward trajectory. The market experienced significant price increases driven by several interrelated factors. Elevated costs of essential feedstocks such as benzene and crude oil have been primary contributors, increasing production expenses and consequently pushing Cyclopentane prices higher. Factory equipment malfunctions and partial sales stoppages further constrained supply, exacerbating the disparity between demand and supply. Inflationary pressures, particularly in key production areas, added another layer of complexity, inflating production costs and contributing to the tightened supply. Focusing on China, the country witnessed the most substantial price changes within the region. The Cyclopentane market there faced increased demand from both domestic and international refrigerant sectors, driven by the summer season's resurgence. Despite high operational rates, production outputs were inconsistent due to intermittent shutdowns in some provinces, which further strained supply. Concluding the quarter, the Cyclopentane Free on Board (FOB) price at Shanghai port stood at USD 1825 per metric ton.
Europe
The second quarter of 2024 has been a notably dynamic period for Cyclopentane pricing in the European region, characterized by a consistent upward trend. This increase in Cyclopentane prices can be attributed to a combination of several interrelated factors. A primary driver of the price surge has been the elevated costs of essential feedstocks, including benzene and crude oil. The increase in these raw material costs has led to higher production expenses, which in turn has pushed Cyclopentane prices upward. Despite a relatively modest demand from the domestic refrigerant market, which typically experiences seasonal variations during the summer, the overall pricing trend remained bullish. In addition to this, persistent trade uncertainties. Persistent trade uncertainties, including ongoing conflicts in the Red Sea and port congestions, have significantly delayed the export of various commodities, including Cyclopentane, to Europe. These challenges were compounded by a recent strike at Hamburg's port, which followed earlier warning strikes, disrupting vessel operations and causing congestion at container terminals. These labour actions have exacerbated supply chain disruptions, particularly affecting the timely delivery to European markets. Together, these elements created a challenging environment for the Cyclopentane market in the Europe, driving prices higher and highlighting the sensitivity of the market to both raw material costs and environmental disruptions.
