1、 Price trend

As of April 24th, the average price of domestic industrial grade high-quality cyclohexane was 7516 yuan/ton. In early April, the market price of cyclohexane showed a relatively stable trend. Due to the relatively balanced supply and demand relationship in the market, the price fluctuation was small. However, in mid April, due to the fluctuation of international crude oil prices and the maintenance of some regional facilities, the price of cyclohexane began to show signs of increase. Some enterprises raised the ex factory price of cyclohexane by around 100-200 yuan/ton. In late April, with the gradual recovery of market supply and the weak growth of downstream demand, the upward trend of prices slowed down, and some regions even experienced a slight correction in prices.
2、 Market analysis
Market wise: In April, the trading activity of the cyclohexane market was generally average. In the early stages of price increases, traders and downstream enterprises showed increased purchasing enthusiasm and market trading volume. However, as prices continued to rise, downstream enterprises began to adopt a cautious attitude towards high priced cyclohexane, gradually reducing their purchasing volume. Some small downstream enterprises even reduced their production scale to cope with the pressure of rising costs.
In terms of demand: Nylon is one of the main downstream products of cyclohexane. In April, the overall demand performance of the nylon industry was average. Although the operating rate of nylon production enterprises in some regions has increased, due to slow growth in end market demand and high inventory pressure, the purchase volume of cyclohexane by enterprises has not increased significantly. Some enterprises have started to seek other alternatives or optimize production processes in order to reduce costs, reducing the use of cyclohexane. Solvent industry: The demand for cyclohexane in the solvent industry is relatively stable, but it was also affected to some extent in April. Due to the continuous strengthening of environmental policies, some solvent production enterprises are facing environmental pressure, and their production scale is limited, resulting in a decrease in demand for cyclohexane, The competition from other solvent products in the market has also had a certain impact on the demand for cyclohexane.
Production situation: In April, the overall operating rate of domestic cyclohexane production enterprises fluctuated. In the first ten days, some enterprises’ equipment operated normally, and the market supply was relatively stable. However, starting from mid month, some companies carried out equipment maintenance, resulting in a decrease in market supply. For example, a large cyclohexane production enterprise in East China conducted a 10 day equipment maintenance, causing a certain degree of tension in cyclohexane supply in the region. In the latter half of the year, as the maintenance equipment gradually resumed production, market supply gradually eased.
3、 Future forecast
In the short term, the price of cyclohexane may continue to fluctuate. If the price of raw material benzene continues to rise, the cost of cyclohexane will further increase, and the price may continue to rise. However, if downstream demand continues to be sluggish and market supply gradually increases, the price may face downward pressure.