In May, the price trend of adipic acid continued the weak trend of last month. The price was weak and the market was calm. According to the data of business agency, the price of adipic acid turned red in May, but the monthly decline was only 0.61% (as shown in the figure above). The price of dealers mainly fluctuated in the range of 100-200 yuan / ton. As of May 29, the mainstream price of adipic acid in East China was generally 6500-6800 yuan / ton.
| ferric sulfate (Poly ferric sulphate) |
In terms of upstream cost, crude oil rebounded and benefited the downstream petrochemical industry. Pure benzene upstream of adipic acid was also affected and the price rebounded. From the beginning of May to now, as of May 29, and according to the monitoring of business society, pure benzene has increased by nearly 15% (as shown in the figure below), but it has not brought fundamental benefits to adipic acid. On the one hand, the cost transmission has a certain lag effect, on the other hand, in the early February and March, pure benzene fell sharply, with a drop of more than 50%, but the decline of adipic acid has not kept up with the decline of pure benzene, so adipic acid is now in the decline of pure benzene There is still some profit space without obvious increase, so adipic acid is also more resistant to falling than the upstream pure benzene. From another perspective, the root cause of the price downturn of adipic acid is more from the supply and demand side.
In terms of market supply, the operating rate of enterprises in the whole month remains at a high level, above 80%. The supply of goods is relatively sufficient, and the manufacturers have been accumulating inventory, and the inventory pressure remains high. And the delivery strength is not good. At present, although most dealers have returned to normal delivery, the downstream demand has not yet reached the level before the epidemic, and the dealers are still relatively cautious in taking delivery. Some dealers purchase according to orders and operate with light inventory. On the whole, the current market has shown a trend of both high enterprise inventory and market inventory, and later market de stocking may continue.
| Azodicarbonamide (AC foaming Agent) |
From the perspective of terminal demand, downstream demand is weak, and it 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 has not been significantly improved, which is difficult to boost the upstream raw material market. In particular, the operating rate of downstream real estate is generally lower than the same period last year, and the sales volume of polyurethane and other insulation materials is also lower than the same period last year. In addition, downstream products such as PA66 did not get out of the dilemma. As soon as the price fell, it fell again and again. Since February, the price has continued to decline. As of May 29, the decline was more than 18%, and the decline in a single may was more than 5% (as shown in the figure below). The poor terminal demand is the fundamental reason why adipic acid price is difficult to get out of the downturn. In addition, in addition to the weak domestic demand, the external demand has also worsened, especially due to the impact of the overseas epidemic, the external demand has continued to decline, and the export trade orders of overseas terminal footwear, leather and other manufacturing industries have declined. In May, the terminal demand is likely to further shrink, because after the delivery of the previous export orders, the new orders have declined significantly, which may further force the enterprises to reduce the burden Commence work to relieve supply pressure.
In the later stage, the Business Association believes that the upstream chemical products have recovered due to the impact of crude oil rebound, but the intermediate products such as adipic acid do not enjoy the dividend at the cost end, but increase the burden of the enterprise due to the increase of upstream cost. This further reflects the dilemma of current demand. The downstream demand is weak. Affected by the reduction of orders caused by the overseas epidemic, it can be said that the domestic and foreign trade difficulties. In a comprehensive consideration, adipic acid will still shake and adjust at the bottom in the near future, and it will take time to get out of the haze.
| povidone Iodine |