Insufficient Demand in the Cyclohexane Market Made It Difficult to Reverse the Weak Trend

According to data monitored by SunSirs, as of might 26, the average domestic price to premium manufacturing-grade cyclohexane stood at 7,383 RMB/ton; the market to cyclohexane remained largely range-bound, with weak demand curbing any upward momentum.

Market analysis

Market Overview: Over the past week, the domestic cyclohexane market has exhibited a weak pattern characterized by slight declines amidst general stability, regional divergence, and sluggish trading activity. The weekly average mainstream price stood at approximately 7,200 RMB/ton (to premium grade, tax-inclusive). Ex-factory prices in the Shandong region ranged from 6,700 to 7,260 RMB/ton, while quotes in East China ranged from 7,800 to 8,000 RMB/ton, resulting in a widening price spread. The market as a whole remains under pressure—weighed down by weakening production costs, ample supply, and lackluster downstream demand—and currently lacks sufficient momentum to a rebound.

Supply Side: Last week, supply in the cyclohexane market remained ample. High operating rates, compounded by an accumulation of inventory, intensified sales pressure and fueled fierce regional price competition. Operating rates remained at elevated levels: the average operating rate to domestic cyclohexane facilities stood between 75% and 80%, with major producers such as Luxi and Hengsheng running at full capacity; furthermore, facilities that had previously undergone maintenance resumed production in concentrated fashion, ensuring an abundant supply of spot market material.

Demand Side: Demand from core downstream industries remains sluggish, and end-market orders are insufficient. Downstream companies are adhering to a strategy of "low inventory and procurement on demand"; consequently, market transactions consist primarily of small orders and lack the support of substantial-volume deals. Caprolactam/Adipic Acid (Core Downstream): Operating rates are holding steady between 70% and 75%; however, the downstream nylon and chemical fiber sectors are currently in their off-season, facing a shortage of orders. Fundamental demand remains stable with no incremental development, leading to purchasing limited to small, need-based orders, which provides only limited impetus to cyclohexane demand. solvent-based products sector: Constrained by environmental regulations, some companies are shifting toward alternative items; demand continues to contract, and purchasing willingness remains subdued. Other Downstream Sectors: Demand from industries such as electronics and coatings remains lackluster, showing no clear signs of recovery and failing to provide efficiently market support. Purchasing Sentiment: Downstream players exhibit a strong wait-and-see attitude and are resistant to high prices; bulk transactions are rare, and overall market activity remains low. The demand side is weak across the board, making it difficult to absorb the ample supply currently available.

Market Outlook:

According to analysts at SunSirs, the cyclohexane market is unlikely to break its current weak direction in the short term. Prices are expected to remain stable with a downward bias, fluctuating within a narrow range; the mainstream trading range is projected to be 7,000–7,300 RMB/ton, while the high-priced region in East China might experience a slight corrective decline.