According to the Commodity Market Analysis System of Shengyi Society, starting from the end of December, with the support of favorable factors, the domestic adipic acid market has steadily risen. On December 26th, the average market price of adipic acid was 6833 yuan/ton. On January 6th, the average market price of adipic acid in China was 7266 yuan/ton, an increase of 6.34%.
Lido supports steady rise in domestic adipic acid market
Due to the continuous decline in the previous adipic acid market, it has already been at a low level. Starting from the end of December, the market for adipic acid has gradually risen and continued to rise, with the average market price reaching around 7300 yuan/ton, an increase of about 500 yuan/ton. The current upward trend is mainly boosted by the raw material pure benzene market, and the terminal rigid demand is still acceptable.
Let’s analyze whether the adipic acid market can continue to rise in the future?
Supply side: The operating rate of domestic manufacturers remains at a high level, and the market supply is sufficient. Although some individual devices may undergo routine maintenance, the overall supply is secure. Social inventory and factory inventory need to be digested. Cautious attitude towards downstream stocking: In the context of uncertainty in the economic environment, downstream users generally adopt a “buy as you go” strategy, and the possibility of large-scale centralized stocking is low, which makes it difficult to form a sustained market pull.
Demand side: From New Year’s Day to Spring Festival, downstream nylon and polyurethane will gradually enter the off-season of production. The factory operating rate will decrease, mainly to fulfill existing orders and pre holiday stocking, with limited expected new orders. The terminal industry (spinning) is also in the pre holiday closing stage and has a weak willingness to purchase raw materials.
An analyst from Shengyi Society believes that in mid January, the rigid demand in the terminal industry was average, and the support of the raw material market was limited. Therefore, the market for adipic acid may weaken in the future.
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