This week, the domestic cyclohexanone market trend is stable but strong. Last weekend (July 1), Sinopec’s listing rose by 150 yuan/ton to 4,950 yuan/ton, forming cost support for cyclohexanone. Domestic enterprise prices of cyclohexanone increased by 100 yuan/ton this week. Hualu Hengsheng’s execution quotation was 7,500 yuan/ton; Shandong Hongda reported 7,300 yuan/ton; Shandong Zhongyin Chemical cyclohexanone reported 7,300 yuan/ton; Shandong Hailihuan Hexanone was quoted at 7,300 yuan/ton.
Supported by the rise in the price of pure benzene at the beginning of this week, the market price of cyclohexanone rose slightly. However, the fundamental support of market supply and demand is still limited, shipments are not smooth, downstream demand is still sluggish, market participants lack confidence, and the transaction atmosphere is average. On Thursday (July 7), the price of Sinopec’s pure benzene rose again by 150 yuan/ton to 5,100 yuan/ton. The market continued to improve, forming strong support for the cost of cyclohexanone, and manufacturers were obviously willing to raise prices. However, the continued sluggish terminal demand and the strong resistance to high prices in the downstream suppressed the cyclohexanone market to continue to rise. The overall market transaction center of gravity increased slightly, and the market mainly operated smoothly in the latter part of the week. The cyclohexanone market in East China is cautiously waiting, and manufacturers are actively supporting the market. However, due to the lack of substantial improvement in demand, the market atmosphere is in a stalemate, and the market price is around 7,500 yuan/ton. The cyclohexanone market in South China is mainly on the sidelines. As the pure benzene market continues to improve, the mentality of people in the market has improved. The bullish atmosphere in the market has increased, and the market price is around 7,800 yuan/yuan. The shipment volume of traders in the cyclohexanone market in Shandong is small. Traders follow the market and the price center of gravity does not fluctuate significantly. The market price is around 7,200 yuan/ton.
Upstream and downstream market performance
The pure benzene market has risen rapidly this week, mainly due to the tight spot supply at ports, the demand of some downstream stocks to fill short positions, and the obvious reluctance to sell goods among cargo holders. In addition, the sharp rise in crude benzene has triggered a rise in hydrogenated benzene, pushing up prices rapidly and supply shortages. Under the support of supply and demand, the pure benzene market in the industry has been short squeezed, causing the market to rise rapidly. The listing price of Sinopec’s pure benzene rose again after July 1. As of July 7, the pure benzene market in East China closed at 5300-5350 yuan/ton. An increase of 325 yuan/ton from last week; North China pure benzene closed at 4,950 yuan/ton, an increase of 225 yuan/ton from last week; the import market closed at 645.5 US dollars/ton, an increase of 5 US dollars/ton. The rapid rise in the pure benzene market has provided strong support to the cost of the cyclohexanone market.
As the two main consumers of cyclohexanone, the caprolactam market has been actively pushing up this week, and the adipic acid market has been running smoothly. As of July 7, the listed price of Sinopec’s caprolactam has been raised by 200 yuan/ton to 11,100 yuan/ton. However, the price of private enterprises continues to be weak, with quotes mostly concentrated at 10,300 yuan/ton, and market transactions focus on 10,200-10,300 yuan/ton. The market price of adipic acid remains stable, and manufacturers are willing to raise prices. However, most factories just need to enter the market, and the actual shipment situation is average. The current market negotiation price in Shandong is around 7,400 yuan/ton; the spot price of Liaohua Chemical is 7,600 yuan/ton. around; Tangshan Zhonghao’s mainstream negotiation is around 7,400 yuan/ton.
Device updates
Shandong Hongda’s cyclohexanone plant with an annual output of 100,000 tons is in normal production, with a daily output of 300 tons. Yueyang Petrochemical’s cyclohexanone unit with an annual output of 110,000 tons is operating normally, and the 80,000 tons unit has been restarted, and cyclohexanone is used for its own use. Shandong Haili’s cyclohexanone plant with an annual output of 200,000 tons is operating normally, mainly supplying downstream caprolactam, and is currently in normal production; the old-line cyclohexanone plant has an annual output of 180,000 tons, operating normally, and mainly supplies downstream adipic acid. Shandong Zhongyin Chemical’s cyclohexanone plant with an annual output of 60,000 tons has been restarted. It mainly supplies chemical fiber ketones and has less shipments of solvent ketones. Shandong Hualu Hengsheng’s cyclohexanone unit with an annual output of 100,000 tons is currently in normal production, mainly supplying adipic acid; its 60,000 tons annual cyclohexanone unit is currently in normal production, mainly supplying old customers. Zhejiang Juhua’s 80,000 tons/year cyclohexanone plant is in normal production and mainly supplies caprolactam. Another cyclohexanone unit with an annual output of 60,000 tons is shut down for maintenance.
Later prediction
In the short term, domestic pure benzene supply and demand support still exists, and the market will mainly maintain high levels to support the cost of cyclohexanone. However, downstream demand continues to be sluggish and has not improved significantly. The cyclohexanone market is expected to be stable to strong next week, and prices may continue to rise.
