According to the monitoring of business agency, this week (4.11-15), the price of domestic adipic acid continued to decline, and adipic acid in East China fell by 0.97% this week. At the weekend, the market price range of adipic acid is 12200-12500 yuan / ton. On the one hand, the prices of upstream pure benzene and cyclohexanone fell. In addition, the supply increased compared with the previous period, while the terminal demand was still cautious and the transaction was not ideal, resulting in the continuous weak downward trend of adipic acid.

 

In terms of market supply, this week, the operating rate of adipic acid decreased slightly compared with the previous week, and is currently maintained at 60%. The listing prices of some large manufacturers have been reduced, the inventory pressure of manufacturers is obvious, and the price reduction is mainly for inventory arrangement. In terms of commencement, several sets of devices have been overhauled. Tianli, Zhonghao and Shandong Haili have maintained 80% load reduction for commencement. Zhonghao has been temporarily inspected within a week and has now resumed operation. Jiangsu Haili and Taihua units are still shut down, and Huafeng unit takes turns to conduct temporary inspection and remove scars. Supply narrowed slightly this week, but the pressure on manufacturers’ inventory in the early stage is heavy, which is still not a favorable stimulus to prices.

 

Azodicarbonamide (AC foaming Agent)

Adipic acid industry chain trend

 

The above figure shows that the adipic acid industry chain has declined as a whole this week. The upstream product cyclohexanone and pure benzene have declined significantly, which is in line with the adipic acid market. In addition, the downstream PA66 has continued to fall, and the terminal remains at a weak level.

 

Market trend of pure benzene in the upstream of adipic acid

 

The price of pure benzene fell this cycle. According to the monitoring of business society, the weekly decline of pure benzene was 2.33%. Mainly due to the price reduction of Sinopec. And the downstream buying intention is light, and the transaction is concentrated in the low end. In addition, due to the adverse impact of the continuous decline of styrene, it is expected that the demand support for pure benzene will collapse in the later stage, which will affect the mentality of the industry. Although there are large-scale plant maintenance in Shandong, the market still maintains a loose pattern, dominated by weak downside.

 

Market trend of cyclohexanone in the upstream of adipic acid

 

This week, cyclohexanone also continued the downward trend of last week. According to the monitoring of business society, the weekly decline of cyclohexanone was 0.59%, narrowing the decline. The domestic cyclohexanone market continued to be weak this week. The raw material pure benzene fluctuates at a high level, and the cost pressure does not decrease. The downstream chemical fiber market was stable and upward. Sinopec caprolactam was listed and increased by 200 yuan / ton, but the purchase enthusiasm was general. In addition, the transportation was limited, the delivery of cyclohexanone was blocked, some enterprises stopped to reduce production, the overall supply and demand of cyclohexanone was weak, and the market was in a stalemate and consolidation. The weak supply and demand led to the continuous decline of cyclohexanone market and continued to put pressure on downstream adipic acid.

 

Market trend of adipic acid downstream PA66

 

povidone Iodine

Terminal demand: the downstream of adipic acid remains weak. The terminal demand is affected by public health events, the operating rate decreases slightly, and the road transportation is blocked, which makes the market atmosphere more light. The decline of PA66 downstream of adipic acid increased this week. According to the data of business society, the weekly decline was 5.93%. Therefore, in terms of supply, the profit of PA66 enterprise is suppressed to a certain extent. In terms of demand, at present, terminal enterprises take goods to follow up, prefer to just need to maintain production, and have strong resistance to high price goods. The slowdown in downstream demand is the fundamental reason for the continued weakness of adipic acid prices.

 

In the later stage, the business society believes that the main reason restricting the adipic acid market is the dual pressure of weak downstream demand and high social inventory. Public health events have brought uncertainty to the market and double pressure on demand and transportation. But at the same time, the supply side is also good, and the operating rate continues to decline, which is conducive to reducing the supply pressure in the later stage. Overall, adipic acid may still maintain a weak market, but it may stop falling in the near future.

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