What is the current supply-demand balance in China's cyclohexanone market and how is trade evolving?

What is the current supply-demand balance in China's cyclohexanone market and how is trade evolving?
China's cyclohexanone market has shifted from tightness to oversupply following rapid capacity expansion in 2019-2020. By 2022, domestic capacity reached 6.1 million tonnes, up 18.2% year-on-year, while production grew 19.5% to 3.68 million tonnes. Demand stood at 3.62 million tonnes, leaving a surplus that pushed producers to increase exports. Imports collapsed to just 400 tonnes in 2022, while exports reached 57,100 tonnes. The demand structure is dominated by caprolactam production at about 72%, followed by adipic acid at 26%, with industrial solvents accounting for only 2%. New capacity is increasingly built as integrated captive units alongside downstream caprolactam plants, reducing the merchant market's role and intensifying competition among standalone producers.