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Feedstock pure benzene drives up costs; cyclohexanone follows the rise, deepening losses in the industry.

Published on 2026-09-10

Introduction: Recently, China’s cyclohexanone spot market has continued to rise. Upstream feedstock benzene has kept increasing, and with strong cost-side support, the cyclohexanone market has risen actively. As of September 10, Shandong cyclohexanone prices were referenced at CNY 10,400–10,500/t, cash, ex-works, while East China market prices were referenced at CNY 10,600–10,750/t, cash, delivered.

Raw material prices fluctuate upward; cost-side support remains solid

Recently, East China benzene spot prices have continued their strong upward trend, with the price center shifting up significantly. East China benzene spot prices rose to around CNY 9,900/t. The benzene market is dominated by geopolitical conflicts, and cost-side drivers are evident; however, downstream negative feedback is not yet obvious. Rigid-demand buyers and contract customers chased the rally and entered the market to purchase, port inventories were destocked, marketable supply was insufficient, and spot market prices quickly followed the rise, continuously increasing cost-side pressure on cyclohexanone.

Price Overview of Cyclohexanone and Related Products (Unit: CNY/t)

Product Region/Grade September 10, 2026 September 1, 2026 Change Change (%)
Benzene East China spot 9920 8595 1325 -11.03%
Cyclohexanone East China spot 10675 9550 1125 -9.24%
Caprolactam Liquid, East China spot 14150 13350 800 -6.27%
Polyamide 6 conventional spinning chips East China market 14650 13500 1150 -6.85%

Raw material prices remain high, creating pressure; losses in the cyclohexanone industry deepen

Driven strongly by feedstock benzene, the cyclohexanone market actively followed the rise. As of September 10, East China cyclohexanone prices were referenced at CNY 10,600–10,675/t, up CNY 1,125/t from September 1, an increase of about 11.78%.

Currently, integration between cyclohexanone and caprolactam continues to improve. As a key chemical intermediate, the share of cyclohexanone sold externally is gradually declining. Based on East China benzene and East China spot price data, the benzene–cyclohexanone spread gradually narrowed to around CNY 755/t, and industry losses deepened. As of September 10, the theoretical loss for hydration-process cyclohexanone was CNY 745/t.

Downstream caprolactam capacity utilization is low; chemical fiber orders are sparse

Capacity Utilization of Selected Caprolactam Producers (Unit: 10,000 t/y)

Enterprise Name Caprolactam Capacity Operating Status of Caprolactam Units
Shanxi Lubao 10 Shut down
Shanxi Yangmei 30 Shut down
Nanjing Dongfang 40 Shut down
Baling Hengyi 50 Operating at about 90% capacity
Zhejiang Juhua 10 Shut down
Fujian Tianchen 35 Operating at about 85% capacity
Yongrong Technology 65 Operating at 80–90% capacity
Pingmei Shenma 38 Operating at 60% capacity
Hunan Petrochemical 60 Operating at 80% capacity
Lunan Chemical 40 Shut down

From the downstream demand side, most domestic caprolactam enterprises have their own supporting cyclohexanone capacity and only purchase a small amount of feedstock externally at certain stages. However, among the few caprolactam enterprises that have a cyclohexanone gap, overall industry operating loads are generally low, with some even shut down. Chemical fiber orders have followed sparsely, and rigid-demand procurement has contracted sharply. In the solvent market, another application sector, purchasing largely maintains a rigid-demand pace, with limited impact on the market. Overall, demand from downstream caprolactam and solvent markets is weak and difficult to provide support for the cyclohexanone market.

In contrast, cyclohexanone units oriented toward external sales operate steadily. After downstream caprolactam producers reduced loads, the merchantable volume available for external sale from some enterprises increased accordingly; market circulation supply is ample, further intensifying supply pressure on the spot side.

Cost pressure persists; short-term domestic cyclohexanone market to run firm

On the cost side, next-period benzene supply and demand are both expected to rise, with an overall destocking pattern. U.S.–Iran maritime friction continues, and navigation risks in the Strait of Hormuz are increasing. Geopolitical factors will support oil prices, which in turn will provide a relatively strong cost driver for benzene. Under the combined effect of two-way growth in supply and demand and cost support, benzene prices are expected to remain firm next week.

At the supply-demand level, operating rates at mainstream domestic cyclohexanone units are basically stable, and spot market supply is relatively stable. However, the proportion of integrated cyclohexanone–caprolactam capacity in China is high, and most caprolactam producers can achieve feedstock self-sufficiency. At the same time, order follow-through in the chemical fiber industry is weak, and the demand pull for cyclohexanone is relatively limited.

Overall, although downstream demand has not yet shown obvious improvement, driven by a relatively strong cost side, the cyclohexanone market is expected to follow benzene’s trend and run firm next period.

Comments

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  • Hannah Berg 2026-09-10 20:12
    I see benzene feedstock cost pressure squeezing cyclohexanone margins; downstream caprolactam demand looks steady, so prices may stay firm, but negative feedback risk grows if capacity utilization can’t absorb it.
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