According to the monitoring of business agency, adipic acid in China continued to decline in July, with a monthly decline of 16.32%. At the end of the month, the market price range of adipic acid was 9600-9800 yuan / ton. On the one hand, from the negative cost, the upstream pure benzene market was weak, and cyclohexanone continued to decline. In addition, the adipic acid market has been declining due to abundant supply performance, weak market demand, poor delivery of goods by manufacturers, obvious inventory pressure and other reasons.

 

Azodicarbonamide (AC foaming Agent)

In terms of market supply, adipic acid operating rate fell slightly this month compared with the previous month, and remained below 60% for the whole month. The pressure on manufacturers’ inventory accumulated seriously in the early stage, and the prices of large manufacturers reduced the listing price and collection price significantly. In order to clear the inventory and ensure profits, enterprises can only operate at a reduced rate. In terms of commencement, Shandong Haili and Hongding units were overhauled within the month, and Chongqing Huafeng phase 5 was shut down; In addition, Shenma, Zhonghao and Yangmei all operate in a reduced range, and Liaohua first line operates. Although the operating rate fell in July, the market and enterprise inventory are still in the process of de stocking.

 

Adipic acid industry chain trend

 

The figure above shows that the adipic acid industrial chain fell across the board this month, and the decline in the middle and lower reaches was significantly stronger. Adipic acid (-16.32%), PA66 (-11.7%). It indicates that the terminal demand is very weak. The decline of upstream pure benzene, cyclohexanone and other products was significantly slower than that of the previous month. It shows that the profit pressure of adipic acid manufacturers is becoming more and more prominent.

 

Market trend of pure benzene in the upstream of adipic acid

 

Market trend of cyclohexanone in the upstream of adipic acid

 

Crude oil surged in July, bringing some support to pure benzene. However, due to the lower downstream operating rate, the demand for pure benzene continues to weaken, and the price is difficult to perform well. According to the monitoring of business agency, pure benzene fell by 4.91% in July. The upstream still has a negative effect on adipic acid.

 

In July, the domestic cyclohexanone market continued to decline. According to the monitoring data of business agency, the average market price of domestic cyclohexanone at the beginning of the month was 11016 yuan / ton, and at the end of the month (as of July 28), the average market price of domestic cyclohexanone was 10180 yuan / ton, with a decrease of 7.59% in the month and 2.49% year-on-year. The price of pure benzene fell, while the downstream demand was weak, coupled with the impact of abundant supply, the cyclohexanone market fell all the way, which was difficult to boost.

 

povidone Iodine

Market trend of adipic acid downstream PA66

 

Terminal demand: the downstream performance of adipic acid is light. Downstream procurement continued to slow down. In July, the domestic PA66 market fell at a low level, and the spot prices of various brands decreased. As of July 29, the ex factory price of PA66 adhesive injection molding sample enterprises of business club was about 21000 yuan / ton on average, with an increase or decrease of -11.7% compared with the average price at the beginning of the month. Due to the continuous pressure on the profits of PA66 enterprises, the load level of domestic PA66 industry continued to fall in July, but the spot supply in the market is still abundant, and the supply pressure is difficult to solve. The inventory position of the port is acceptable, and the arrival volume of overseas goods is general. In terms of demand, at present, terminal enterprises take goods and follow up, preferring just to maintain production, and have strong resistance to high price supply. In the traditional off-season, the demand of downstream factories shrinks, the contradiction between supply and demand is prominent, and merchants have great resistance to shipping. The transaction on the floor fell, and the seller’s mentality was not good, so he gradually tried to reduce the yield order.

 

In the later stage, the business community believes that crude oil may rise with the tightening of supply and energy tension in the later stage, pure benzene is expected to stop falling and stabilize, and the negative cost side may be alleviated. With the impact of the profit compression of adipic acid manufacturers, the manufacturers are willing to support the price, and the price may gradually stabilize in the later stage. However, considering that Tianli, Zhonghao and other devices may recover one after another, the supply may increase in the later stage, and the downstream demand is difficult to improve in the short term, it is more likely that adipic acid will stop falling in the short term, but it is unlikely to rebound sharply.

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