SunSirs: Downstream Demand Was Insufficient and Cyclohexane Market Was Operating weakly

Price trend

According to data monitored by SunSirs, as of November 19th, the average price of industrial grade high-quality cyclohexane in China was 7,766.67 RMB/ton. As of November 19th, the domestic cyclohexane market had been operating narrowly and weakly, with market transaction prices maintained at around 7,900 RMB/ton, mainly affected by upstream and terminal factors. The cyclohexane price had dropped by 0.43% compared to the same period last week. As of November 19th, there was sufficient spot supply of cyclohexane, and follow-up was cautious.

Analysis review

Market wise: As of November 19th, the upstream market had relatively weak support for the cyclohexane market, and the supply side of the cyclohexane market was relatively loose. The overall demand in the downstream market was poor, with a small amount of shipments. Manufacturers mainly offered discounts to take orders, and industry players were cautious and cautious, with low purchasing sentiment.

In terms of cost: At the beginning of last week, international crude oil and benzene prices fell both, and upstream prices fell, driving the cyclohexane market to continue to weaken. As of November 19th, the benzene market was operating in a narrow range of fluctuations, with supply and demand in the market, and inventory was operating normally with narrow fluctuations. Northern market quotations had declined, with low prices frequently appearing. Port pickups in East China have been smooth, and overall market buying has rebounded so far.

Downstream: The downstream market for cyclohexanone continued to show a weaker trend, with the overall decline slowing down at that time. As of November 19th, the overall market was in a state of supply and demand balance, with low prices increasing and prices mainly concentrated between 8,600-8,700 RMB/ton. Downstream demand performance was poor, and production enterprises had weakly lowered their offers. Industry players lacked information on the future market, and they were cautious in following up, showing a mentality of buying up and not buying down.

In terms of demand, downstream prices of CPL were mainly weak, and the industry's supply capacity had increased. As of November 19th, the operating rate of CPL can reach about 85%, and there was sufficient supply of goods. There was some pressure on inventory, and the price of CPL continued to maintain a weak trend during the week. It is expected that the price will maintain the current trend in the short term.

Market outlook

The cyclohexane analyst from SunSirs believes that as of November 19th, the cyclohexane supply side was relatively sufficient, downstream demand was limited, and the overall market was mainly focused on essential procurement. The mentality of the industry was still weak and the profit situation was not optimistic. The industry lacks confidence in the future market, and the driving force for price increases is insufficient. It is expected that the cyclohexane market will maintain its current trend in the short term, with stable and weaker operation as the main focus.

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