Cyclohexane Recent Market Dynamics Report

I. Price Trend
- Benchmark Price Movement: According to Shengyishe data, the cyclohexane benchmark price stood at RMB 7,516.67/ton on May 11, 2026, declining to RMB 7,383.33/ton on May 19—a decrease of 1.77%. By May 23, quotations from different enterprises showed divergence: Shandong Hanyue Chemical quoted RMB 6,500/ton; Nanjing Baitu Chemical quoted RMB 7,800/ton; and Qingdao Shengze Chemical quoted RMB 5,200/ton.
- Regional Price Spread: Significant intra-provincial quotation differences were observed in Shandong Province—Jinan Zesheng Chemical offered as low as RMB 4,700/ton, whereas Shandong Yushuo Chemical quoted as high as RMB 7,650/ton—reflecting disparities in regional supply-demand balance and brand premium.

II. Supply-Demand Balance
- Supply Side: Domestic cyclohexane plant average operating rates ranged between 75%–80%; major producers—including Luxi Group and Hengsheng Chemical—operated at full capacity. Spot supply remains ample; enterprise inventories are moderately elevated, and port inventory in the East China region stands at approximately 12,000 tons, intensifying pressure to clear stock.
- Demand Side: Downstream industries—including caprolactam and adipic acid production—maintained operating rates at 70%–75%, with insufficient order volumes. Demand remains stable but stagnant, showing no growth momentum. The nylon and chemical fiber sectors have entered their off-season, and textile demand remains weak. Downstream buyers continue adopting low-inventory strategies and procure strictly on a just-in-time basis, resisting higher prices and resulting in scarce bulk transactions.

III. Cost Factors
- Weakening Benzene Feedstock Prices: Since May, benzene prices have continued declining. In Shandong Province, benzene prices fell to RMB 6,800/ton—a monthly decline exceeding 5%. Consequently, cyclohexane production costs have eased, lifting gross margins to RMB 800–1,000/ton. This has weakened manufacturers’ pricing power and reduced their willingness to sell at premium prices.

Analysis & Assessment

I. Reasons for Narrow-Range Price Fluctuations
- Supply-Demand Equilibrium: Ample supply and sluggish demand offset each other, while cost support has loosened but not yet fully transmitted into the spot market—resulting in price stagnation.
- Regional Divergence: Wide intra-provincial quotation variations reflect differences in logistics costs, brand premiums, and regional supply-demand balances—for instance, Jinan Zesheng Chemical’s low-price strategy may aim to liquidate inventory, whereas Nanjing Baitu Chemical’s higher quote likely targets premium-market segments requiring higher product purity.

II. Key Market Contradictions
- Cost vs. Demand Conflict: Falling benzene prices reduce production costs and improve profitability, yet weak downstream demand constrains upward price movement. Although profit margins have recovered, sales volumes remain under pressure.
- Inventory vs. Sales Pressure: Moderately high enterprise inventories coupled with port stockpiling—combined with downstream buyers’ low-inventory procurement policies—have heightened suppliers’ pressure to offload goods, prompting some enterprises to implement promotional price cuts.

Outlook

I. Short-Term Trend (1–2 Weeks)
- Weak Consolidation: Influenced by persistently weakening benzene prices and lackluster downstream demand, cyclohexane prices are expected to continue trending downward within a narrow range, with the benchmark price potentially falling to the RMB 7,200–7,300/ton range.
- Worsening Regional Divergence: Intensified low-price competition in Shandong Province may spread to other regions, whereas premium-market quotations (e.g., Nanjing Baitu Chemical) may remain relatively stable—highlighting distinctions in product purity and brand value.

II. Medium-Term Trend (1–3 Months)
- Seasonal Demand Recovery: Should the nylon and chemical fiber industries enter their traditional peak season after June, downstream demand may gradually rebound, driving a modest cyclohexane price recovery. However, the magnitude of any rebound will depend on benzene price trends and the pace of global economic recovery.
- Supply-Side Structural Optimization: Stricter environmental regulations may accelerate the phase-out of outdated capacity, raising industry concentration. Leading enterprises—such as Shandong Fengde Chemical—stand to gain further market share, leveraging advantages in high-purity products and robust supply-chain integration.

III. Long-Term Trend (6+ Months)
- Green Transition and High-End Upgrading: As the global chemical industry shifts toward greener, higher-value products, demand for high-purity cyclohexane (≥99.9%) is projected to grow significantly faster than the industry average, becoming a core growth driver.
- Market Expansion: China’s cyclohexane market is forecast to achieve a compound annual growth rate (CAGR) of 6.5% between 2026 and 2030, while the global market CAGR is projected at 4.66%, primarily driven by expanding applications in synthetic fibers, coatings, and pharmaceutical intermediates.