For the Quarter Ending March 2024
North America
The North American Cyclohexane market has witnessed an overall bullish situation during the opening quarter of 2024, due to increasing prices of feedstock Benzene and heightened demand from downstream construction sector.
Prices of feedstock Benzene inflated by approximately 22% during this quarter which directly resulted in the increased production costs of Cyclohexane across North America. Moreover, demand for Cyclohexane from the downstream paints and coating sector gradually improved during February 2024 after the freezing weather experienced by the US in early January 2024.
Overall demand conditions remained favorable from the downstream paints and coating industry as residential constructions improved. Also supporting the demand for the product was the improvement in the commercial construction activities. Moreover, the depreciation in the mortgage rates witnessed during the middle of February 2024 also forecasted a positive outlook for prospective homebuyers. Overall, in North America, residential construction continued to be driven by the perennial shortage of secondhand housing complemented by increased nearshoring activities to Mexico.
Asia
The opening quarter of 2024 witnessed an overall bullish market situation for Cyclohexane across Asia. Prices of the product recorded an increment of approximately 3.5% due to increasing production costs. The increments in the prices of the product are largely attributed to increments in the prices of feedstock Benzene, which inflated by approximately 18%, during this time frame. Therefore, the heightened production costs directly translated into the prices of Cyclohexane across Asia. However, demand conditions from the downstream paints and coating sector continued to remain unfavorable across Asia, and the importing East Asian market as the construction sector continued to underperform. The underperformance of the construction sector is indicated by declines in residential starts and falling investment sentiments across China. Moreover, challenging weather conditions, mostly due to rains across East China also further negated demand conditions. As demand conditions remained highly unfavorable. Therefore, procurements were carried out only as per requirement, which is why prices of Cyclohexane exhibited only a marginal increment in the prices during this quarter.
Europe
The opening quarter of 2024 witnessed an overall mixed market situation of Cyclohexane across Europe. Overall prices of Cyclohexane across Europe were recorded to have increased by more than 3% during this time frame. Upticks in the prices of Cyclohexane across Europe were primarily associated with inflation in the prices of feedstock Benzene which inflated by more than 44% during this time frame, thereby resulting in the increments in the production costs. Across the Eurozone, the construction sector also improved as evidenced by increments in the mortgage filing applications and the mandatory policy of possessing an EPB (Energy Performance Indoor Climate) certification as part of the policy introduced by the Belgian government in late 2023. Moreover, upcoming municipal elections across Belgium also provided adequate support to the prices of Cyclohexane as commercial construction improved. This gradually led to improvement in the demand from the downstream paints and coating industries. However, despite the demand side exhibiting a gradual recovery during the termination of this year, increased input costs in the construction sector continued to weigh on real estate firms with the outlook being primarily pessimistic for the rest of the year.
For the Quarter Ending December 2023
North America
Cyclohexane prices in the North American market have demonstrated a bullish trend, despite encountering a substantial drop of approximately 20% in the prices of the feedstock Benzene.
The prevailing dynamics in the U.S. Cyclohexane market have been primarily influenced by constrained supplies of the product, resulting in a notable shortage. The demand for Cyclohexane remained robust, particularly driven by the Mexican market, contributing to the bullish market conditions. The flourishing automotive and construction sectors in Mexico continued to exert pressure on the paint and coating industry, generating heightened demand for exports in the U.S. market.
Towards the conclusion of December 2023, the U.S. automotive industry experienced a notable recovery, with sales witnessing an increase of almost 13%. Simultaneously, the construction sector showed signs of improvement, characterized by augmented funding injections and an upswing in hotel construction activities. These developments added further strain on the existing inventories of Cyclohexane.
Manufacturing activities in the U.S. maintained a subdued trajectory, posing challenges in meeting the demands for an adequate supply of Cyclohexane.
APAC
Cyclohexane prices in the APAC region exhibited a notable increase of over 10%, despite the feedstock Benzene experiencing subdued prices with a depreciation exceeding 10%. The significant rise in Cyclohexane prices can be attributed to immediate demand-driven purchases by Chinese traders, who displayed a keen interest in bolstering their inventories. Concurrently, the sustained contraction in manufacturing activities across China throughout the final quarter of 2023 contributed to a tangible deficit in Cyclohexane supplies. The prevailing demand for paints and coatings, stemming from the resilient performance of the construction sector, was an additional factor prompting suppliers to engage in procurement activities, notwithstanding the relatively subdued demand from the construction industry. However, the persistent weakness in export orders imposed a downward pressure on Chinese manufacturers, resulting in a 1.4% decline in Cyclohexane prices. This decline was further complemented by low production costs attributable to the depreciating prices of Benzene. As of the conclusion of the last quarter of 2023, Cyclohexane prices were assessed at USD 1043/MT FOB Shanghai.
Europe
Cyclohexane prices in the European market experienced a predominantly bullish market scenario, demonstrating an increment of approximately 10%, despite the feedstock Benzene facing a bearish trend throughout the entire fourth quarter of 2023. The upward movement in prices was primarily propelled by constrained supplies of the product within the Eurozone. The overall contraction of more than 1.5% in industrial chemical production across the Eurozone contributed to a notable scarcity of Cyclohexane, exacerbated by modest demand. The primary demand from the paints and coatings industry within the construction sector reported weakness, as the construction industry underwent a period of retrenchment throughout the last quarter of 2023. All three segments of the construction sector, encompassing housebuilding, civil engineering, and commercial buildings, experienced substantial downturns. Housebuilding, in particular, emerged as the weakest-performing segment, evident from declining housing permits and canceled assignments. Job shedding persisted for the thirteenth consecutive month, while subcontractor availability eased for the eighth consecutive month. Overall sentiments toward investments reached historic lows in December 2023, as indicated by real estate firms reporting highly unfavorable demand conditions.
For the Quarter Ending September 2023
North America
In the third quarter of 2023, Cyclohexane prices in the US remained weak, with slight improvements. The stability and marginal upturn in prices can be attributed to several market dynamics. In July 2023, the raw material Benzene experienced a 9.5% decrease in price due to oversupply, which subsequently contributed to the cost-effectiveness of Cyclohexane production. However, despite this favorable condition, new orders from merchants followed a declining trend. Backlogs remained stable in July, despite challenging credit conditions and high-interest rates within the country. One notable positive aspect was the significant improvement in supplier delivery times, reaching a record high in the US market. In the middle of the third quarter, there was a marginal price improvement for Cyclohexane, influenced by rising fuel, raw material, and labor costs in the US market. However, the demand for the product continued to be subdued. The decline in new orders was primarily attributed to a weakening economy and cautious customer behavior when entering into new contracts. These factors combined to shape the landscape of Cyclohexane prices in the US during the third quarter of 2023.
Asia
The Cyclohexane market in China and across the Asia-Pacific (APAC) region experienced a fluctuating price trend in the third quarter of 2023. In July, prices showed a declining trend, but they later rose in the third quarter. The rise in the third quarter was influenced by the strength of the raw material Benzene, which led to an increase in the production cost of Cyclohexane in Asian regions. However, despite the cost dynamics, the demand for Cyclohexane in industries like auto parts, textiles, and electronics remained subdued. This was primarily due to a lack of interest from potential customers and the sufficient availability of Cyclohexane in the regional market. South Korea's early exports saw a continued decline in August, reflecting the ongoing impact of lackluster global trade on economic growth. Towards the end of the quarter, the crude oil and benzene markets significantly influenced downstream derivative industries, including Cyclohexane. This pricing dynamic highlights the intricate relationship between raw material costs and pricing trends within the Cyclohexane industry.
Europe
The price of Cyclohexane remained weak in the first two months of third quarter and later rose in the third quarter of 2023. Further, the weak cost pressure from the feedstock benzene in the German market supported the Cyclohexane prices towards negative direction. The business conditions in Germany, a key player in the European market, deteriorated during this period. This decline was characterized by a faster decrease in both business activity and new orders. Several factors contributed to this challenging environment, including rising interest rates, customer uncertainty, and broader inflationary pressures. This overall economic outlook indicated a bearish demand for Cyclohexane in the German market. The German manufacturing purchases index consistently remained below threshold limits throughout the quarter, further underscoring the uncertainty in domestic economic activity. New export orders also saw a notable decline, particularly due to reduced sales across Europe. These factors collectively contributed to the declining pattern of Cyclohexane prices in the European region during the third quarter.
For the Quarter Ending June 2023
North America
The cyclohexane market remained firm throughout the second quarter of 2023 in the USA market. Despite declining prices of feedstock benzene during the same period, the market of Cyclohexane remained firm, leading to the prevailing price trend. Firm demand from the downstream paints and coatings, construction, and automotive sector was the key factor behind the current prevailing price trend. Moderate recovery in demand from the paints and coatings sector is observed in the USA market during June despite hiked interest rates amidst growing inflationary pressure. As per the data from the US Census Board, the privately owned housing starts in May were 21.7% above the revised April estimate and following the same trend in June. Further, the fluctuating price trend of upstream Crude Oil in the country has impacted the production rate and consequently influenced the prices. However, as indicated by FRED, the Purchasing Managers Index of the country has depreciated throughout the second quarter, while the US consumer price Index rose. The CPI of the US rose by a margin of 0.3% in June from the preceding month, May 2023. Overall, the strong demand from downstream industries and positive growth in the construction sector seems to have outweighed the challenges posed by fluctuating crude oil prices and declining PMI, contributing to firmness in the Cyclohexane market in the USA.
APAC
A slight surge in Cyclohexane price was observed at the beginning of the second quarter of 2023. A marginal increase of 0.75% was observed from the previous month. This rise was initially influenced by supply problems in the region. However, in May and June, the prices experienced a decline due to various contributing factors. The construction sector, a significant consumer of Cyclohexane for paints and coatings, faced sluggish demand during this period. China’s construction sector has been observing a downturn since April 2023 due to a weaker-than-expected property sector. Further, amidst the global economic slowdown and growing inflationary pressure, consumers from the property sector remained hesitant. The lack of procurement orders from exporting countries, particularly South Korea, further influenced the prevailing price trend. This, coupled with the surplus availability of the material in the market, supported the narrowing demand-supply fundamentals of the product. Additionally, as indicated by the National Bureau of Statistics China, the Purchasing Manager Index is declining and has been recorded at 48.8 in May 2023 after a marginal decline of 0.8% from the previous month, along with a decrease in industrial growth rate from 5.6 in April 2023 to 3.5 in May 2023. These economic indicators hinted towards reduced economic activity, potentially affecting Cyclohexane demand.
Europe
Cyclohexane prices slumped at the beginning of the second quarter but later rose in European Region despite of decline in feedstock Benzene prices. The prices rose in Germany by a margin of 5.29% from April to June. The key factors attributing the incline were growing inflationary pressure and hiked interest rates in the region. Inflation in Germany has, however, slowed down and has slumped to 5.6% in June from 6.1% in May but is still above the minimum level. Thus, in an effort to curb inflation, the European Bank has raised interest rates in the region. This has caused the traders to keep the prices of Cyclohexane on the upper side. However, as indicated by the German Federal Statistical Office, the Consumers Price Index declined by 0.1% in May 2023. Further, as indicated by Eurostat, the Producers’ Price Index of the region declined to 138.3 in May from 143.4 in March and is expected to decline further. The average decline was 3.6%. Additionally, robust demand from the automotive and textile sectors further influenced the current prevailing price trend.
For the Quarter Ending March 2023
North America
The price of Cyclohexane 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. The high inventories of upstream crude oil from the manufacturers, coupled with lower prices, further supported the Cyclohexane market. After 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 paints and coatings has been low to stable.
Asia
Throughout the first quarter of 2023, the price of Cyclohexane in the Asian market showed a weak to strong trend. After the Lunar holidays, the cost of Cyclohexane 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 same price pattern throughout the quarter. The cost of the product settled at USD 1064/MT on a FOB Shanghai at the end of the quarter.
Europe
The price of Cyclohexane fell in Europe throughout the first quarter of 2023 due to consistent supply and sufficient availability in the market. 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. The weak global economy negatively impacts German exports, while rising inflation rates negatively impact consumer spending and other commercial trading by lowering purchasing activity and sharply raising borrowing costs. The cost of Cyclohexane hovered around USD 1316/MT on a FOB Nuremberg basis during the end of the quarter.
For the Quarter Ending December 2022
North America
In the last quarter of 2022, the price of Cyclohexane went up for the first two months, then declined during the last month in the North American market. The feedstock Benzene showed a higher price in the USA, which led to the prices of the downstream derivatives rising in the US market. Due to the high rate of inflation, and high-interest rates in the United States, the prices of petrochemical products increased during Q4 2022. As the holiday season approached in the final month of quarter 4, the downstream Caprolactam and Adipic Acid were lowered in orders and demand in the market, as traders had already procured enough cargoes during previous months. In addition, in the face of inflation, domestic consumers tended to wait and buy.
APAC
The Cyclohexane market witnessed fluctuating price trends in Asia throughout Quarter 4 of 2022. The upstream Benzene price fluctuated in Asia, leading the downstream derivative to follow a similar price trend in the regional market. In China, the demand from the downstream Caprolactam and Adipic Acid industries declined in the market. The operating rate of Cyclohexane was stable, and the procurement happened based on demand. The Chinese government imposed a Zero COVID policy to control the cases. Due to this, trading activities were slowed down, and the orders from the end-use industries were reduced. Further, India also followed the same price trend of Cyclohexane; the traders and consumers tended to wait-and-see attitude.
Europe
During the fourth quarter of 2022, the price of Cyclohexane decreased in Europe; as a result of low demand, manufacturers reduced the production rate of Cyclohexane. Further, the upstream Benzene prices dropped by about 5% during December and supported the downstream derivative industries in the Eurozone. The availability of the material was abundant, and port congestion declined in the region. However, the energy crisis was high in the European market, which resulted in the high operational cost of producing the product. During December, the manufacturers were selling their products at an offered price due to year-end destocking sales across Europe.
For the Quarter Ending September 2022
North America
During the third Quarter of 2022, the price of Cyclohexane witnessed a decline in the North American market due to weak cost pressure from the feedstock Benzene, along with weak downstream demand from the coating, adhesive, and other key driving industries in the region. The orders from purchasers decreased, and the product availability increased in the market. The traders stockpiled and quoted cheaper offers to the end-use customers due to high availability in the market. At the same time, the production costs decreased due to a decrease in natural gas prices owing to excess product availability.
APAC
During the third Quarter of 2022, the price of Cyclohexane witnessed mixed sentiments in the Asian market. In China, weak cost pressure from feedstock Benzene led to the price decline of Cyclohexane in the market. Moderate demand from the downstream coating, textiles, and other chemical industries and volatility in crude oil prices further change the price of Cyclohexane. In India, the cost of Cyclohexane showed an increasing trend during the first two months of the Quarter owing to the low inventory from the traders and low stockpile in the market. In the last month of the Quarter, the price decreased sharply due to high inventory from importing countries like China with cheap imported cargos in the Indian market. The cost of Cyclohexane hovered around USD 1276/MT on a FOB Shanghai basis during the Quarter ending 2022
Europe
The price of Cyclohexane fluctuated in the European market due to increased natural gas prices and additional utility costs in the European region, and consumers were hesitant to purchase the product in the market. Weak demand from the downstream coating industries has declined the product's price. The unprecedented heat waves and the rising temperature resulted in the drying of the important Rhine River in Germany. In Germany, most of the transportation was carried out on waterways, and this scenario disrupted the supply chain and forced traders to utilize railways. Therefore, the aforementioned scenarios affected trade activities and led to delays in deliveries, and international buyers backed off from purchasing the commodities. The cost of Cyclohexane settled at USD 2049/MT on a FOB Hamburg basis during the third Quarter ending 2022.
For the Quarter Ending June 2022
North America
During the second quarter of 2022, Cyclohexane prices witnessed an upward trajectory throughout the quarter. A tight supply of raw materials and demand from the downstream industries further increases the cost of Cyclohexane in the region. USA stockpiles worry about a tight supply of crude oil, which has a weaker global economy and demand. The high usage of the product in refrigerators, insulations, foam blowing agents, and chemical solvents led to the price in the region. Order from the downstream industries and surged in natural gas prices increased the operational cost of Cyclohexane.
Asia Pacific
In the second quarter of 2022, the Asian market of Cyclohexane has observed mixed sentiments in the region. The international crude oil prices soared in the region owing to the war between Russia and Ukraine. The feedstock prices steadily increased, and supply disruptions in the region further raised the price of Cyclohexane. In China, the limited supply of crude oil influenced the benzene market, and a strike by south Korean truck drivers delayed the transportation of petrochemicals from the port to other regions, further pressure on Cyclohexane. The price of Cyclohexane was recorded with an inclination of 4% Chinese market.
Europe
In Europe, the market sentiments for Cyclohexane prices fluctuated throughout the European region. The international crude oil prices soared in the region owing to the war between Russia and Ukraine. The feedstock prices steadily increased, and supply disruptions in the region further raised the price of Cyclohexane. The war-related activities put pressure on the petrochemical commodities in the region. The Russian authorities' firm stance on trading the Ruble (Russian currency) has put pressure on supply disruptions to stabilize demand in the local market due to the upward trend in crude oil prices and the limited supply of raw materials hovering in the region. The operational cost was high due to the region's natural gas supply shortage.
For the Quarter Ending March 2022
North America
With the United States contributing around 7.95% of the world's total Cyclohexane exports, the price of Cyclohexane was spotted to be fluctuating in Q1, 2022, with prices hovering around USD 1319 FOB Houston in the month of January. A stable increase of 0.5% was seen in the first quarter as compared to the Q4 of 2021 due to slow offtakes throughout the quarter. Although the price of feedstock Benzene rose due to volatility in crude oil prices, the cost of Cyclohexane remained steady in the global market. Increasing product supply and decreasing raw materials maintained this condition.
Asia Pacific
During the first quarter of 2022 in Asia, China saw a fluctuation in the prices of Cyclohexane at the beginning of the quarter, with prices starting at USD 1198/ton CFR Shanghai in January. A sudden spike was seen in the prices in February, where an increase of 3.1% was seen, whereas an overall decrease of 4.8% was seen in Q1 in China as compared to the previous quarter, and steady growth was observed in the price of Cyclohexane in India. Due to insufficient demand from downstream paints and coatings and difficulties in exports to Europe due to crippling container availability, inventories piled up in Q1, which eventually pushed down prices in the country towards the Q1 end.
Europe
In Q1, 2022, the prices of Cyclohexane witnessed an upward trajectory as compared to other regions, with prices at nearly USD 1592/ton FOB Nuremberg in the month of March. Inflationary pressure and consistently high demand from the downstream polymers and insecticides sector, coupled with high feedstock prices, resulted in a rise in the prices of Cyclohexane during the quarter. Feedstock Benzene prices consistently gained in value by taking cost support from high crude values, due to which prices observed consistent gyration amidst the contradicting market factors.
For the Quarter Ending December 2021
North America
During the fourth quarter of 2021, the prices of Cyclohexane escalated in the North American region owing to the substantial rise in the values of the raw material Benzene. In the US, the market outlook of Cyclohexane observed an upward rally backed by the strong demand from Adipic Acid and Caprolactam manufacturing industries. Moreover, the Power surge, along with the lower imports from China, also sent ripples to the prices of Cyclohexane in this timeframe. Besides, strong freight charges further influenced the overall pricing trend of the product in the quarter.
Asia
In Asia, the prices of Cyclohexane showcased mixed emotions with the varying market sentiments from country to country throughout the fourth quarter of 2021. In China, the cost of Cyclohexane plunged in the time frame of October to November after registering record-high estimates in the last quarter. In India, Cyclohexane prices attained gains in this quarterbacked by the firm demand from Caprolactam manufacturers. Moreover, traders tried to keep their margins wide amid strong offtakes from domestic as well as international markets. Hence, December Ex-Mumbai prices of Cyclohexane were listed around USD 1307.05/MT showcasing a hike of USD 107.36/MT.
Europe
In Europe, the pricing trend of Cyclohexane experienced an upward trajectory backed by the spike in raw material Benzene prices and firm demand from downstream industries, including Automotive, Paints and Coatings, Textile, and others. Moreover, the soaring energy prices effect of the natural gas crisis rocketed the production cost across the European region, which also contributed to the pricing trend of Cyclohexane. Hence, Cyclohexane Ex-Works Nuremberg (Germany) prices stood at USD 1575/MT in December, witnessing a hike of 8% since October.
For the Quarter Ending September 2021
North America
The domestic market price of Cyclohexane demonstrated an upward trend in the North American region during Q3 2021 due to the disrupted supply of upstream Benzene. In terms of demand, after the resumption of operations by several manufacturing units, an increment in the demand was observed from the downstream sectors. Traders reported difficulties in translating high raw material costs to the end consumers, while limited container availabilities pressured export volumes during the quarter. Cyclohexane prices gained considerably in Q3, taking cues from strong upstream pricing and tight market supplies.
Asia
The prices of Cyclohexane witnessed a significant rise in the Asia Pacific region during the third quarter of 2021. After easing in pandemic-related restrictions in India, industrial activities ramped up, and the production of Cyclohexane significantly improved in Q3. The price of Cyclohexane CFR Kandla (India) was assessed at USD 1096/MT in September. Traders reported that they had faced difficulties in exports to Europe due to crippling container availabilities, which resulted in piled-up inventories that eventually pushed down pricing in the country. While in China, the prices of feedstock Benzene shot up in Q3 due to the limited availability of raw materials in the country.
Europe
The overall market outlook experienced an upward trajectory across the European region in Q3 2021. The prices of Cyclohexane observed an upward trend in the first half of Q3 due to limited production and constrained overseas supply. Cyclohexane price Ex-works Nuremberg (Germany) escalated from USD 1155 to USD 1180 per MT in the 3rd quarter. Furthermore, the future price assessments of Cyclohexane settled on the back of decreasing price trend of feedstock Benzene.
For the Quarter Ending June 2021
North America
Cyclohexane prices witnessed gains till the end of May due to disrupted upstream Benzene supply across the USA since February. Several refineries resumed their operations to satisfy the overall demand for Benzene from the downstream derivatives segment, while some of them extended turnarounds analyzing the damage caused due to the winter storm. From the demand perspective, the demand for Cyclohexane moved at a slow pace across the region. Therefore, prices of Cyclohexane increased till the end of May and declined later, which ultimately settled at USD 1280/MT in the last week of June.
Asia
Asian market showcased mixed sentiments for Cyclohexane during this quarter. In India, prices of Cyclohexane fluctuated with import activities from Asian countries like Thailand, as several countries side lined India under the fear of catching contagion. As soon as the imports improved in the country, prices of Cyclohexane started declining and reached USD 1290/MT during June in India. While in China, prices of feedstock Benzene soared during this quarter due to limited availability in the country.
Europe
Tights supply activities of Benzene across Europe during this quarter led to a rise in prices of downstream derivatives across the region. Initially, during April, the Suez Canal blockage also impacted the availability of Cyclohexane in Europe, as trade activities between the Middle East and Europe were delayed for more than a week. Therefore, eventually, a price hike in both products was observed during Q2 2021 in Europe. Prices of downstream derivative products of Benzene, including Cyclohexane, rose across the region due to prolonged tight supply.
For the Quarter Ending March 2021
North America
The North American market experienced mixed sentiments for Cyclohexane, while the one faced higher demand throughout the quarter. Demand for Cyclohexane remained high from the downstream caprolactam sector, although inadequate supply amidst high demand made the prices follow an upward trajectory from USD 1225 per MT to USD 1315 per MT during March. During this timeframe, various plants across Texas remained idle, and almost 100% supply snoozed for this period due to freezing fallout.
Asia
A similar scenario was observed in the Asian markets where demand for Cyclohexane from the domestic downstream sector. Demand for Cyclohexane remained firm in the Chinese market and encountered a steady rise in its prices. The FOB price of Cyclohexane rose from USD 857 per MT (January 2021) to USD 1037 per MT (March 2021). While the demand for Cyclohexane remained consistently low from the downstream refrigerant sector, and hence prices dropped down from USD 2145.4 per MT during January to USD 2127.3 per MT during March 2021.
Europe
The European market observed moderate to low demand for both Cyclohexane from downstream sectors during this quarter. Although the export demand from Asia for Cyclohexane remained firm due to lower exports from North America region. Meanwhile, the feedstock availability also remained halted across the region due to similar reasons. Prolonged shutdown over several plants of the region also affected the price and supply activity for Cyclohexane during this timeframe.
For the Quarter Ending December 2020
North America
Consistent increment in the prices of Cyclohexane was observed in Q4 2020 due to the increased demand from textile, paints and coating industry. With economy paving its way back, the demand gained stability while the supply was observed to be initially low. As the prices of upstream crude increased in Q4 2020, the manufacturing cost subsequently increased leading to a rise in prices of Cyclohexane. Prices of these two products are expected to remain firm in the near term as the prices for upstream crude are anticipated to continue an upward trajectory.
Asia
Cyclohexane demand surged in the global market in Q4 2020 buoyed by the rising demand. With the onset of Covid-19, the demand for foam-blowing agent in the production of Polyurethane, used in the manufacturing of refrigerators, freezers increased in the final quarter due to the consistent increment in demand for the storage of surgical devices and vaccines. Thus, despite of strict rules and regulations, the demand for the product was remained stable to firm due to rising demand in pharmaceuticals, healthcare and food and beverage industry. Consequently, its prices also averaged at around USD 2014 per MT CFR JNPT in the quarter ending December 2020.
Europe
With the stabilizing demand in the automotive and textile industry, market sentiments for Cyclohexane remained stable in Q4 2020. The supply for Cyclohexane was ample in Q4 2020 as compared to Q3 2020 with a smaller number of scheduled turnarounds in plant units followed by its feeble demand. Over time, restocking of material by the end-user industries was observed that increased the demand by the end of the quarter. Prolonged turnarounds at downstream plants also affected the demand in Q4 2020
