US cyclohexane (CX) production is mainly captive and consumed internally. There is typically little to no outside demand.
Nearly all CX is consumed in the production of cyclohexanol and cyclohexanone, which are then used mainly to make caprolactam (capro). These products are used mainly to make nylon 6 or nylon 6,6.
The US CX market historically follows the direction of benzene, a key driver. The US benzene contract price is factored into an industry-based CX formula used by ICIS.
Many market participants have said they are unsure what direction cyclohexane will head in the second quarter of 2012 because of the economic uncertainty, but some expect feedstock benzene demand to pick up in March and April as refinery build stockpiles ahead of the summer driving season. Sources have also noted that movement in the second quarter could be more tied to crude prices compared with supply/demand.
ICIS has a contract price for the US, which is updated monthly.