Cyclohexanone market conditions (prices) continue to be strong

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Cyclohexanone market conditions (prices) continue to be strong

After more than a month of bottoming out, the company currently does not ship much cyclohexanone, mainly because the profit margin of the industry is limited at this stage and the cost of raw materials is relatively high.

It is understood that cyclohexanone is a colorless and transparent liquid, an important organic chemical raw material and an important industrial solvent. It is the main intermediate in the manufacture of nylon, caprolactam and adipic acid. High-purity cyclohexanone is mainly used in the production of semiconductors, TFT liquid crystals, photoresists, and color filters.

A reporter from the Associated Press learned that pure benzene accounts for 53% of the cost structure of the traditional cyclohexanone process route, and the market trend of pure benzene directly affects the price of cyclohexanone. Since the end of June, the price of pure benzene has been rising steadily, driven by the positive factors of the upward fluctuation of international crude oil.

The price of raw material pure benzene has risen strongly, with the listed price of Sinopec’s pure benzene rising by as much as 23%; while cyclohexanone is operating near the cost line, so the price of cyclohexanone has followed the rise of raw material pure benzene.

In terms of downstream demand, caprolactam is one of the most important downstream users of cyclohexanone.

Data show that as of August 17, caprolactam base increased by 3.77% compared with the beginning of this month. The demand side of cyclohexanone continues to have strong support.

According to commodity market analysis, from September 1st to 8th, the average price of domestic cyclohexanone market increased by 3.33% during the cycle, and the price increased by 2.95% year-on-year. The price of raw material pure benzene has been raised several times, and the cost pressure has increased. The supply and demand of cyclohexanone are weak and the enthusiasm for downstream procurement is average. The market price has risen with the rising cost, but due to the weak demand, the increase has been small.

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In terms of cost, raw material pure benzene, domestic pure benzene market continues to rise. Crude oil and styrene are relatively strong, and port inventories continue to be destocked. In addition, downstream profits have recovered compared with the previous period, and shipments have picked up;
In the cost structure of the traditional cyclohexanone process route, pure benzene accounts for 53%. The market trend of pure benzene directly affects the price of cyclohexanone, and the short-term cost of cyclohexanone is favorably affected.

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On the supply side, according to commodity market analysis statistics, domestic cyclohexanone production capacity is about 6.55 million tons, and the current operating load is about 60%, which is at a low level. The main production enterprises, Shijiazhuang Coking, Yangmei Fengxi, Shandong Hongda, Jining Zhongyin, Shandong Haili, Jiangsu Haili, have limited product supply. The short-term supply of cyclohexanone is affected by positive factors.

On the demand side, cyclohexanone devices are mostly supporting the downstream production of caprolactam, and caprolactam is one of the most important downstream products of cyclohexanone. Supported by strong costs, the market price of caprolactam has risen sharply. In addition, some parts of the supply are still being reduced. The partial supply of caprolactam is slightly tight, and the price has risen significantly. The demand for cyclohexanone is temporarily positive.

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Post time: Sep-19-2023