In late May, the market for adipic acid gradually weakened. On May 18th, the average market price of adipic acid was 9233 yuan/ton, and on May 25th, the average market price of adipic acid was 9133 yuan/ton, a decrease of 1.08%.
The main factors affecting the rise and fall of adipic acid market during this stage
Supply side: Centralized maintenance to hedge partial pressure. In response to the situation of oversupply in the market, the adipic acid factory has been releasing concentrated reports of equipment shutdown or load reduction since the end of April, in order to achieve the goal of reducing production and maintaining prices. The industry’s operating rate dropped from around 75% in late April to around 65% in late May.
Demand side: Downstream is entering the off-season, with weak procurement. Downstream demand is the core factor currently dragging down the market. Starting from mid to late May, downstream industries gradually entered the traditional off-season, with poor follow-up of terminal orders.
Procurement pace: End users and downstream factories mainly focus on digesting early-stage inventory, maintaining a strong demand for raw material adipic acid procurement, with very limited follow-up on inquiries and actual orders.
Downstream industries: The operating rate of major downstream industries such as PA66 has significantly declined, further reducing raw material consumption. TPU and other markets also have light trading, making it difficult to form strong support for adipic acid.
On the cost side, the raw material pure benzene market declined synchronously in mid to late May, and the listing price of Sinopec pure benzene was slightly lowered. This has resulted in less support from the cost side compared to the previous period, affecting market sentiment.
In summary, the forecast for supply and demand shows that cost support is weakening, supply is tightening, demand is declining, and the rise in adipic acid in early June is weak. From a technical perspective, it can be seen that the upward momentum of the adipic acid market in May was insufficient, and the increase was limited. Therefore, the overall weak downward trend of adipic acid market in early June is expected, with prices ranging from 9000 yuan/ton to 9300 yuan/ton.
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