US Cyclohexanone Prices Show Resilience in November, Asian Prices Gain Momentum

Houston (USA): Cyclohexanone prices have remained unchanged in the week ending November 24. In the US, amidst demand stagnancy, the Asian market has shown some price improvement. Cyclohexanone prices in European territory as of November 24 have been assessed at USD 1900 per metric tonne, FD Hamburg. Upstream hydrocarbons such as naphtha, benzene, and phenol have remained stable in the European market zone in the week ending November 24, bringing stability to Cyclohexanone prices. The downstream textile industry has been reported to be somewhat shaded, wakening support to Cyclohexanone prices.

Europe’s textile sector has been fighting with soaring inflation. Negative sentiments have grabbed exporters due to waning demand, an overvalued lira, and lower profit margins. Textile and apparel exports have fallen more than 7% through October this year due to rising shipping costs, leaving overall export data flat, as per several sources.

The third largest manufacturer of textiles in Europe, the Turkish clothing supply market has been facing higher production costs. After the Turkish government hiked taxes on textile imports, the apparel manufacturing industry has been falling further behind its Asian contenders, as sector leaders have said. According to market sources, job cuts might take place as Turkish producers have been leaving place for rivals like Bangladesh, Vietnam, etc. The weakening downstream market might have a negative impact on Cyclohexanone prices.

Asia’s textile industry has been performing well, capturing European markets. China’s apparel exports in Russia have registered a surge of 25% to USD 2.25 billion. On the other side, India’s cheaper textile exports to Nordic regions have been reported up in recent scenarios, supporting upstream Cyclohexanone prices. Cyclohexanone prices in China have registered a 2.3 percent hike in the week ending November 24, reaching USD 1310 per metric tonne. Cyclohexanone’s upstream naphtha and benzene also have been traded higher in the mentioned week.

In North American regions, Cyclohexanone prices have been hovering around USD 1690 per metric tonne, FOB Texas. As revealed in the third quarter result of BASF SE, the chemical industry has been still under stress. North America’s chemical production has declined compared to the same quarter of the previous year due to weak domestic demand from end users. In the Chemicals segments, EBIT margins have been reported to be low. The unplanned outages in Port Arthur, Texas, in September have additionally burdened the earnings.

On the other hand, Exxon Mobil Corporation has revealed an increase in its earnings by USD 1.5 billion from the second quarter to USD 6.1 billion, driven by lower scheduled maintenance, higher crude prices, and favorable tax impacts.