Why does only the price of cyclopentane drop but not rise when raw materials prices are rising?

Cyclopentane is divided into coal and petroleum production processes, so there are two kinds of raw materials. The petroleum grade feedstock is the by-product cracking C5 and reforming byproduct mixed C5 of ethylene cracking unit, and the coal grade feedstock is the by-product of crude benzol hydrogenation. Although the raw materials are different, there is no significant difference in the quality of cyclopentane, and the downstream application is basically the same, mainly as the foaming agent of rigid polyurethane foam.

At present, nearly half of the enterprises in the Chinese market adopt coal technology, accounting for 45% of the total number of enterprises and 47% of the production capacity. The price rise and fall of non aromatics directly affect the raw material cost of cyclopentane, and then affect the pricing of cyclopentane.

Recently, the price of non aromatic hydrocarbons has been rising due to the shortage of on-site goods. However, the cyclopentane market was stable, and some ex factory prices still fell. Why?

The reasons are as follows:

1. The price adjustment flexibility of cyclopentane in high-end channels is poor. The pricing cycle of factories and large-scale terminal industries is long, mostly quarterly or annual, so the pace of cyclopentane rising this time is limited.

2. It is difficult for low-end channel to ship goods, and the manufacturer reduces the price to arrange the warehouse. Although the pricing of small and medium-sized terminal industries is flexible, due to the further inspection of safety and environmental protection, some of them shut down for rectification or withdraw from the market, resulting in insufficient demand, weak low-end channel delivery, rising inventory, and part of the price reduction.

To sum up, cyclopentane market did not rise with raw materials, the price of high-end channel was stable due to the lack of pricing cycle, and the low-end channel was to sell at reduced prices due to insufficient demand.