Price trend

According to the Commodity Market Analysis System of SunSirs, the domestic cyclohexanone market rose in May. From May 1st to 31st, the average price of cyclohexanone in the domestic market increased from 9,602 RMB/ton to 9,906 RMB/ton, an increase of 2.52%, with a year-on-year increase of 6.95%.

Analysis review

In early May, the domestic price of cyclohexanone stabilized, with high fluctuations in pure benzene after the holiday, and the cost pressure remained unchanged. Downstream chemical fibers and solvents mostly purchased on demand, with stable and abundant spot supply in the market. High priced shipments were hindered, and the market was undergoing consolidations.

In mid May, there was an expectation of a recovery in the domestic cyclohexanone market. The raw material pure benzene was operating strongly, resulting in increased cost pressure. Downstream purchases were made on demand, and the market situation was consolidating to be stronger.

In late May, the domestic cyclohexanone market saw a narrow rise, with raw material pure benzene fluctuating at high levels and significant cost pressure. Downstream chemical fiber procurement was concentrated, and the atmosphere for cyclohexanone transactions was still good. Low price offers gradually decreased, and the focus of transactions increased.

On the cost side, the price of pure benzene in the domestic market had risen significantly, and the short-term supply tension in the market was difficult to change. At the end of the month, overseas factories caught fire, and the impact on pure benzene production was still uncertain. However, for the long-term scarce domestic pure benzene market, it still stimulated prices to continue to rise. As of May 31st, the benchmark price of pure benzene for SunSirs was 9,075.50 RMB/ton. In the cost composition of the traditional cyclohexanone process route, pure benzene accounted for 53%. The market trend of pure benzene directly affected the price trend of cyclohexanone, and the short-term cost of cyclohexanone was influenced by positive factors.

On the demand side, cyclohexanone units were mainly equipped with downstream production of CPL, which was one of the main downstream sources of cyclohexanone. The price of CPL continued to rise, while upstream pure benzene prices continued to rise. The cost pressure of CPL had increased, and enterprise quotations continued to rise. However, downstream high priced purchases of CPL and PA6 conventional spinning chips were gradually becoming cautious, and the atmosphere of high priced transactions was slightly easing. The demand for cyclohexanone had a mixed impact.

Market outlook

The raw materials were operating at a high level, and the cost pressure was relatively high. Downstream demand was average, and the spot supply and demand of cyclohexanone were weak and balanced. SunSirs’ cyclohexanone analysts predict that the domestic cyclohexanone market will consolidate at a high level in the short term.

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