This week, the domestic adipic acid market continued to decline, slowing down. According to the monitoring of the Business News Agency, as of March 24, this week’s decline was 0.99%, and the market trading center further moved downward. Currently, the market quotation range for adipic acid is between 9800-10000 yuan/ton, which is around 100 yuan lower than the previous weekend. The main reasons are difficult to improve the cost side and prominent pressure on supply and demand.
| povidone Iodine |
Industrial chain
The above figure shows that this week, the performance of the adipic acid industry chain was weak, with the upstream pure benzene rebounding slightly, but with little strength. Cyclohexanone fell, and the overall cost side was empty. Downstream demand is weak, and the price of PA66 is weak and downward.
Supply side: slightly increase in operating rate and maintain loose supply
Market supply: In terms of devices, the overall operating rate of adipic acid increased slightly this week, with the operating rate rising to 70% this week. The main concern is that after the restart of Huafeng device, the supply will steadily increase, and most manufacturers will start to operate at full load. Manufacturers have a trend of accumulating inventory, and the overall supply performance of the market is abundant.
Demand side: Downstream demand remains weak
Adipic acid downstream performance was weak. Terminal procurement is in urgent need of support, on-site buying is light, and early inventory is mainly digested. Downstream factories are cautious in picking up goods, and sporadic orders are needed to ensure normal startup demand. Taking PA66 as an example, according to the monitoring by the Business News Agency, PA66 fell 0.81% this week, hovering at the bottom of the market. At the weekend, the market price of PA66 in Zhejiang is in the range of 20000-21000 yuan/ton. In addition, other sectors also performed poorly, with caprolactam continuing to decline, TPU market declining, and weak demand also constraining the improvement of adipic acid prices.
| Azodicarbonamide (AC foaming Agent) |
Cost side: limited increase in pure benzene, falling price of cyclohexanone
This week, negative sentiment in peripheral markets turned weaker, financial risk concerns temporarily eased, and crude oil rebounded. However, the entire domestic chemical market still exhibits uneven hot and cold performance. Pure benzene rebounded slightly with crude oil, rising by 0.35% per week, but the price of cyclohexanone and cyclohexanone fell by 0.18%. From a cost perspective, it is difficult for upstream raw material prices to effectively boost adipic acid formation.
Future prospects
The business community believes that on the cost side, it is difficult to completely eliminate external risks. The probability of recent fluctuations in crude oil is high, and the impact rate on the domestic chemical market will probably remain weak. Pure benzene and cyclohexanone are difficult to emerge from the trend. Overall, there is no good guidance on the supply side. In addition, the supply and demand sides also maintain a weak pattern, with a high operating rate, expected increase in supply pressure, and slow progress on the demand side. Taking into account, the price of adipic acid will hover at a low level, and the downward space will narrow.
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