Adipic acid prices declined in China amid weak demand and ample supply, while Germany saw stable pricing due to balanced fundamentals and cautious production. Diverging regional dynamics suggest continued market softness without a clear demand recovery.
The global adipic acid market posted divergent price directions in China and Germany during the second week of July 2025, based on local dynamics along supply chains, raw material trends, and activity in the end-use sector. A drop in China reflected lingering demand-side weakness and weakening feedstock prices. German prices-maintained stability as local producers adapted operations to catch up with steady but slow consumption.
In China, Adipic acid prices declined 1.7% against a tepid market sentiment as demand was lacklustre and cost-push pressures were subdued. Run rates were maintained by producers, but declining feedstock prices, especially benzene and cyclohexanone, curbed their pricing power and resulted in competitive pricing. Seasonal shipping disruptions such as rain-hit rail delays and southern port congestion extended delivery periods but could not restrict market availability with soft offtake.
Downstream Adipic acid demand remained slack. Nylon 6,6 and engineering plastic converters continued to exercise guarded buying, citing too much inventory and weak order visibility. Southeast Asian and European export demand also languished in taking up speed, with foreign markets grappling with low consumption levels. Indian buyers were also inactive, due to monsoon-related slowdowns and deteriorating automobile sales. Overall, off-season demand and oversupply ensured continued pressure on Chinese Adipic acid prices.
Prices for Adipic acid remained steady in Germany due to a carefully balanced market. Stable cyclohexanone values helped sustain controllable production economics, despite a minor increase in benzene prices. To prevent excessive accumulation, domestic producers matched run rates to demand.
Against a 7% rise in new car sales, the boom did not translate into higher Adipic acid offtake because downstream converters drew on readily available stockpiles. Demand was further limited by summertime industrial slowdowns and continued prudence in the plastics and automobile industries. Imports within-Europe added to supply, whereas logistical bottlenecks at European ports had minimal market impact due to prevalent demand sluggishness. As a result, Adipic acid prices remained stable, and the market took a wait-and-see stance.
In the near-term, Adipic acid markets in China as well as Germany are bound to remain under pressure unless downstream consumption experiences strong revival. In China, continued off-season demand and risk-averse export sentiment will be inclined to capping any upside even when logistical normalization is on the cards. Germany, however, suffers from normal summer drowsiness, and even though automotive statistics record modest recovery, they are not likely to drive near-term restocking.
