Prices of Cyclohexane have witnessed a depreciation of approximately 2.5% in the third week of January 2024 in the European market after witnessing an incline of more than 3% on a week-on-week basis during the first half of January 2024. The prime reason attributed to the appreciation in the prices of Cyclohexane (during 1st half of January) is attributed to the increments in the prices of feedstock Benzene which inclined by approximately 5% and the market and continuing bullish trend as evidenced by the prices which further increased by approximately 11% during the third week of January 2024.
The prime reason attributed to the depreciation in the prices of Cyclohexane in the third week of January 2024, was attributed to the low demand from the downstream Caprolactam, Cyclohexanone, and Adipic Acid from the textile industry as evidenced by the overall stable prices of the above products with only minor fluctuations recorded on weekly basis. The prime reason for the stable prices of the above products was attributed to the moderate demand from the downstream textile industry which overall created low pressure on the existing inventories of Cyclohexane. 95 Ethanol
Trading activity across the Eurozone was recorded to have largely subdued, consequently prompting suppliers to maintain a cautious approach. This consequently compelled the prices of Cyclohexane to depreciate. Despite the primary demand from the textile industry witnessing a largely subdued market, the demand for Cyclohexane from the paint and coating industry from the construction sector witnessed a healthy rebound. This is evidenced by improvement in the construction industry across the importing Dutch market, where house prices were recorded to have witnessed a marginal increment, including the rising sales of new constructions keeping the pressure on the existing inventories of Cyclohexane. Existing house prices across the Netherlands were recorded to have risen by approximately 3%, after witnessing a historically low situation in May 2023. The prime reasons attributed for the same were no changes in existing interest rates and increment in wages which consequently improved affordability and laxed credit sentiments. This consequently pressured the downstream paint and coating industry, improving the market situation of Cyclohexane.
Towards the termination of January 2024, prices of Cyclohexane across the European market are expected to increase as prices of Benzene are expected to increase due to increasing prices of Crude Oil and inflated freight charges, which is consequently expected to increase prices of feedstock Benzene, despite the primary downstream textile industry being expected to witness no significant improvements. The secondary demand from the construction sector is also expected to witness a healthy uptick if consumer confidence continues to lie in the positive territory.
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