Adipic acid: Market Review and outlook in June

In June, the domestic adipic acid market rose first and then fell. The overall price focus was mainly downward, which also hit the lowest point in the first half of the year. In the first half of the month, supported by the cost and supply side benefits, the market price showed a slight upward trend. However, in the second half of the month, with the weakening of raw materials and weak demand, adipic acid manufacturers began to actively yield profits. The market was impacted by low-cost supply, and the focus of negotiation continued to decline.

During the month, the listing price of pure benzene rose first and then fell, and the support for adipic acid changed from strong to weak. There were three increases and two decreases in the month.

In terms of the listing of adipic acid plants, the listing price and collection price were raised one after another in the first ten days, supported by the three listing increases of pure benzene. In the second half of the month, the market price of adipic acid turned downward, and near the end of the month, the listing price of some major factories decreased.

In terms of supply, Shandong Haili has shut down since late May, and the specific restart time is not clear; Shutdown of Hongding and Liaohua old lines; Raise the Taihua unit to full load; Other devices keep stable operation; In addition, Tangshan zhonghaocun maintenance plan, the specific time has not been determined. Overall, the supply volume in June fell slightly compared with that in May, and the supply side generally supported the price of adipic acid.

In the first ten days of June, the rise of adipic acid market was less than that of pure benzene, and the loss of the industry intensified. In the later stage, the price of pure benzene fell. Although the loss of adipic acid Market eased, with the rapid decline of adipic acid price in the second half of the month, the loss of the industry further intensified. Therefore, the support of raw material cost is still strong.

On the demand side, due to the weak terminal performance of the downstream polyurethane industry, the new single increment is limited, and the factory operating load is at a medium level; The PBAT market continued to be weak, and the average operating load remained at a low level; The terminal demand performance of PA66 market is also weak, and the improvement of factory construction is limited, with an average of about 50% of construction.

In general, in late June, due to the high enthusiasm of manufacturers for shipping, preferential policies were implemented for some supply prices, which accelerated the decline of adipic acid market. However, considering the current loss situation, the trend of raw material pure benzene is volatile, and the cost side support remains. In July, when the sales pressure in the first half of the month is small, the willingness of the factory to make profits is limited. It is expected that the short-term adipic acid market price mostly passively fluctuates with the trend of raw materials, which does not eliminate the possibility of a small rebound in low prices, but the market is difficult to improve significantly without significant improvement on the demand side.