Adipic acid market slightly lower

I. price trend

According to the data of business associations’list, the domestic adipic acid market last week (10.8-13) was slightly lower than before the festival. Dealers’ quotations declined mainly. Market prices fell by 100 yuan/ton, the percentage of decline was 0.71%. By the end of the weekend, the quotation is generally between 8300 and 8500 yuan/ton.

II. Analytical Review

Last week, adipic acid market slightly declined. After the festival, the market did not usher in the “silver ten” peak season. On the contrary, it slightly declined than before the festival. Most distributors reduced their quotations by about 100 yuan/ton. The market in East and South China declined. The market atmosphere was slightly cool and the distributors were mainly active in delivering goods. The market maintained a weak and volatile pattern. At present, the downstream market has a more wait-and-see mentality. Deals are slightly deadlocked, and there is room for retailers to concede profits.

On the supply side, the market supply is still in a relatively loose range, and many distributors said that the inventory pressure is high, the start-up rate of plant is high, the market inventory and manufacturer inventory have risen, the pre-holiday market has staged reserve behavior, affected by this, after-holiday goods slowed down slightly. Last week, dealers successively took delivery of goods, so there were relatively low price sources flooding the market. There was a certain bargaining space for products, and the price difference between market price offer and firm offer was still kept. Dealers in North China, East China and South China adjusted their quotations to varying degrees, and most regions maintained stable market.

In terms of demand, downstream demand is relatively flat. The traditional “Silver Ten” market has not arrived as scheduled this year. The downstream start-up rate is still slightly insufficient. The start-up rate is about 50%. There is no strong boost to the upstream adipic acid. From the cost point of view, the upstream pure benzene market has turned downward since the end of September. At present, it is mainly weak, and the cost level lacks favorable support. The market has gradually returned to flat, and the market has entered the de-inventory cycle. According to the monitoring of business associations, the reference price of East China market is about 8300-8450 yuan/ton, while the price of South China is generally between 8400-8500 yuan/ton.

3. Future Market Forecast

Analysts of adipic acid in the chemical branch of the business association believe that the current market is weak, the market shows a certain contradiction between supply and demand. At present, adipic acid is in excess supply and weak demand. Therefore, the Business Association believes that adipic acid market may continue to maintain a narrow adjustment pattern in the short term.