Cyclohexane Prices Index: Trend, Chart, News, Graph, Demand, Forecast
In Q1 2025, the North American cyclohexane market experienced a steady quarter-on-quarter price increase, driven primarily by stronger benzene prices and consistent demand from the automotive and textile industries. Early in the quarter, a rise in crude oil futures and improved market sentiment contributed to higher production costs, further supporting the upward pricing trend. Inflationary concerns added additional pressure, particularly as discussions over potential import tariffs under President Trump’s administration heightened market uncertainty. Supply conditions improved significantly after the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) finalized a six-year labor agreement, alleviating fears of port disruptions and stabilizing logistics.
By mid-quarter, operations rebounded following the disruptions caused by Winter Storm Enzo. However, the announcement of a 25% tariff on imports from Mexico and Canada introduced renewed uncertainty. The delay in implementing the tariff prompted importers to engage in preemptive buying, securing overseas cyclohexane stocks to hedge against potential cost increases, which further fueled the upward price momentum. Toward the end of the quarter, cyclohexane prices continued to firm up, supported by a recovery in U.S. manufacturing activity and rising vehicle sales, which spurred downstream demand. Even though benzene prices started to ease, ongoing procurement activity and robust economic conditions maintained price stability in the market.
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In Europe, cyclohexane prices fell by approximately 7.4% during Q1 2025 due to oversupply and subdued demand. January began with sluggish market activity as producers deliberately lowered operating rates to counter negative market sentiment, while the holiday season further restricted procurement. Supply chain disruptions at the Port of Antwerp, caused by maintenance activities, temporarily halted exports and contributed to regional oversupply. Construction activity weakened significantly, further reducing demand. In February, cyclohexane contract prices registered a marginal increase of EUR 2/MT, but suppliers struggled to transfer these cost increases to downstream buyers.
The 4.5% rise in benzene prices elevated production costs, yet the market remained under bearish pressure due to weak construction and automotive demand. Asian exporters showed little interest in diverting material to Europe, adding to the localized surplus. By March, production costs eased as benzene prices fell by 2%, but cyclohexane prices remained largely stable owing to moderate supply adjustments. The lack of significant recovery in construction and automotive activity, coupled with ongoing logistical inefficiencies, kept the European market sentiment muted throughout the quarter.
In the Asia-Pacific region, the cyclohexane market followed a bullish trajectory, with prices increasing by around 4.6% overall in Q1 2025. Prices surged by about 6% early in the quarter before dipping by 1.5% toward March. January witnessed downward pressure from a 3.3% decline in benzene prices, which lowered cyclohexane production costs. However, reduced production in China due to plant shutdowns constrained supply, driving prices upward despite moderate downstream demand from the caprolactam and paints sectors. Ahead of the Lunar New Year, some suppliers increased procurement activity, further boosting prices.
In February, market fundamentals remained relatively stable, with Chinese producers relying on existing inventories and maintaining low production levels. Benzene prices rose by 1%, increasing cost pressure, while steady export activity to Southeast Asia supported market circulation. Nevertheless, weak demand from the paints and coatings industry persisted despite economic stimulus measures in the region. By March, benzene oversupply reduced production costs further, but producers continued to operate at curtailed rates to avoid oversupply. Demand showed early signs of recovery, particularly from the construction sector, though a full-scale rebound was not anticipated by the end of the quarter.
Get Real time Prices for Cyclohexane: https://www.chemanalyst.com/Pricing-data/cyclohexane-1148
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