China Cyclohexanone Price Rises; Tight Supply Supports Market Resilience

1. In the previous period, domestic market prices for cyclohexanone rose. In the Shandong market, the price reached 11,300 yuan/ton, up 100 yuan/ton from the previous trading day. In the East China market, prices ranged from 11,600 to 11,700 yuan/ton, an increase of 100 yuan/ton from the prior period. In the Guangdong market, prices also stood at 11,600–11,700 yuan/ton, up 75 yuan/ton from the previous trading day. While refineries raised their offers for cyclohexanone, the weak performance of the pure benzene market dampened sentiment, leading to a cooling in trading activity and limiting the extent of the price gains.

2. Key factors influencing current market price fluctuations

Cost: Sinopec’s listed price for pure benzene remains stable at 10,800 yuan/ton; however, the spot market has weakened, eliminating the upward pressure it previously exerted on cyclohexanone prices.

Demand: While there is steady, essential demand from the chemical fiber sector, the solvent market shows strong resistance to high prices. Furthermore, the weakness in pure benzene spot prices has strengthened the bargaining power of downstream buyers.

Supply: Industry operating rates have remained stable recently. With refinery inventories currently low, there is a strong inclination among producers to maintain price levels.

3. Trend Outlook

Despite a decline in pure benzene spot prices yesterday, the market for cyclohexanone remains resilient. This is due to tight supply and the fact that refineries are still operating at a loss. Market surveys indicate that 80% of industry participants expect prices to remain stable today.