Domestic Cyclohexane Market Looks Bleak

In Blog, News by Author

As domestic Cyclohexane derivative production slows down, many producers are wondering if they can remain open and profitable in a burgeoning competitive environment. In the wake of the Fibrant LLC closure of its U.S. plant in Augusta, GA, the domestic market is estimated to lose approximately 190 kilotons per year of product demand.

Grim Outlook For Domestic Cyclohexane

The aftermath of this closure will have a significant impact on local and national business — a ripple effect whose scope isn’t quite known at this juncture. The extent to which commodity pricing, supply, and demand could be affected is reflective of the growing, dynamic chemical marketplace.

This is a sizable shift in the U.S. marketplace, pushing average domestic operating rates in the low 60% range. The demand would be such that one or two more domestic plants could close their doors and the remaining capacity would still be sufficient to meet all business requirements. Contract renewal negotiations are underway and it is possible that another Cyclohexane manufacturer will announce its closing within the next month.

Looking For Cyclohexane?

GreenChem remains in good position on Cyclohexane, with product available and in stock all across the U.S. Contact us today for product information and material availability!

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