Adipic acid market is weak and stable, and it may be difficult to break through in the near future

Adipic acid market trend chart



According to the business club’s big list data, this week (8.17-8.21), the domestic adipic acid market weak adjustment, some regions prices slightly lower. According to the data monitored by the business agency, adipic acid in East China decreased slightly, by only 0.60%. The market demand was sluggish, the market supply pressure was not reduced, and most dealers reported low profits to ship goods. Market people still looked down on the future market, and the dealers were mainly light on inventory operation. According to the monitoring of the business agency, the current quotation range of adipic acid market is 6500-6700 yuan / ton.


In terms of market supply, the operating rate of adipic acid manufacturers this week was flat compared with that of last week, at present, more than 80% of them are at present. Dealers usually take delivery of goods normally. At present, relative to the off-season level, some dealers purchase according to the order, and light the inventory operation. Generally speaking, the pressure of enterprise inventory and market inventory is relatively large. In terms of cost, the upstream crude oil price maintained a periodic high, and pure benzene rose slightly this week by 0.88%. After experiencing the upward market in late July, the current periodic correction of pure benzene is insufficient to support the downstream adipic acid (as shown in the figure below). At present, the main contradiction in the market is that the downstream demand has not fundamentally improved, and adipic acid is squeezed from both upstream and downstream, resulting in the gradual decline of enterprise profits.


Market trend of pure benzene


Benzalkonium chloride

From the perspective of terminal demand, the downstream demand has little change compared with the previous period, and is still in the off-season level. The operating rate of downstream factories has not been significantly improved, and the overall consumption level of plastic products is not significantly improved, which is difficult to boost the market of upstream raw materials. In addition, the rigid consumption of polyurethane in the downstream is stable. Although the state has promoted new infrastructure investment, the real estate sector has not benefited much and the insulation material industry has not improved significantly. In addition, PA66 and other downstream products are not warm and tepid, and the price is still hovering at a low level. This week, the price fluctuated narrowly, with a slight increase of 0.66% (as shown in the figure below). As a result, adipic acid demand is difficult to fundamentally change, inventory is difficult to digest, manufacturers have a lot of pressure, dealers generally follow the market and purchase on demand. In addition, in addition to the weak domestic demand, external demand has also worsened. Especially affected by the overseas epidemic, the external demand has decreased, and the export pressure of adipic acid has continued to increase. It is not ruled out that the inventory will continue to rise in the future.


PA66 market trend chart


In the later stage, the business community seems that the fundamentals are still weak in the short term, the upstream lacks favorable support, the supply is loose, and the market price is squeezed by cheap goods. The downstream market will remain weak due to the weak domestic demand and the shrinking foreign demand orders caused by the severe overseas epidemic situation.

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