In Q1 2024, prices of cyclohexanone in major exporting countries within the APAC region, such as China and Taiwan, rose by 2-3% compared to Q4 2023. This bullish price trend was mirrored in major importing countries, including India, Argentina, Brazil, South Korea, Vietnam. The price increase was driven by a combination of factors, including rising demand from downstream industries like textiles and automotive, as global economies continued their recovery from the pandemic. Additionally, supply chain disruptions and higher production costs, due to stricter environmental regulations and increased feedstock prices, further contributed to the price hike. Collectively, these factors exerted upward pressure on cyclohexanone prices across the region.
In Q2 2024, cyclohexanone prices in major exporting countries in the APAC region remained stable with a moderate increase compared to Q1 2024, a trend that was mirrored in key importing countries such as India, Argentina, Brazil, South Korea, Vietnam. This stability was attributed to a combination of factors: consistent demand from the automotive and textile sectors, which had begun to recover robustly, and improved supply chain logistics that reduced delays. Additionally, strategic stockpiling by importers ahead of anticipated market fluctuations, along with steady feedstock prices, contributed to the gradual upward price trend without significant volatility. These dynamics fostered a balanced market environment that allowed for controlled price increases across both exporting and importing regions.
In Q3 2024, the price trend of cyclohexanone in the APAC region increases by approximately 2.5-3% compared to Q2 2024, driven primarily by heightened demand from key end-user industries such as textiles, automotive, and coatings. This surge in demand coincides with ongoing supply constraints due to environmental regulations affecting production capacity in major exporting countries. Additionally, rising costs for raw materials and feedstocks, coupled with geopolitical uncertainties that impact trade flows, further contribute to the upward pressure on cyclohexanone prices. The combination of strong market demand and limited supply creates a dynamic that favors price increases in the region.
Looking ahead of Q4 2024, the price of cyclohexanone in the APAC region is expected to continue facing fluctuations due to various market conditions. Key drivers impacting prices include raw material costs, specifically the price of benzene, and the balance of supply and demand across key markets such as China, Taiwan, and South Korea. the prices in APAC were affected by destocking, high freight costs, and limited production capacity due to oil supply restrictions. These factors are expected to carry over into 2024, with cyclohexanone prices potentially seeing moderate increases if supply chain disruptions persist. Additionally, any geopolitical instability or oil price hikes could push prices higher.