Adipic Acid Prices Hold Steady in Europe Amidst Weak Demand
- 22-Nov-2023 3:01 PM
- Journalist: Xiang Hong
The consistently narrow price range observed for Adipic Acid in the European market results from subdued demand reflected in low orders received from the domestic market. Manufacturers operating in the European market are exercising heightened caution in response to a noticeable reduction in purchasing activities. This cautious approach has prompted manufacturers to implement production limitations for Adipic Acid within the regional market.
The low demand from the domestic market has led manufacturers to curtail their production, aligning it with the diminished purchasing activities. As a consequence, the overall availability of Adipic Acid in the European market remains within a constrained price range. This scenario highlights the impact of market dynamics, emphasizing the influence of demand patterns and manufacturing strategies on the European region's pricing and production decisions within the Adipic Acid sector.
In the middle of the fourth quarter of 2023, the supply of Adipic Acid in the German market was ample, effectively meeting the domestic demand. Merchants in the European market are adopting a cautious approach when it comes to purchasing the product. Their buying patterns are guided by immediate requirements, focusing on acquiring the material only on a need basis. Additionally, there is a reluctance among merchants to stock up on the material as the end of the year approaches. This cautious and conservative approach from merchants shaped the dynamics of Adipic Acid supply and demand in the European market during this period.
Germany, experiencing a significant industrial recession, has emerged as one of the weakest economies in Europe this year. Several factors, including high energy costs, weak global orders, and elevated interest rates, have collectively contributed to this economic downturn. The repercussions are evident in German firm's order books, which are gradually diminishing. This reduction in order books has the potential to weigh on overall industrial output further, adding to the challenges the German economy faces.
Given the prevailing uncertainty in the German market, there is an anticipated weakening in the demand for Adipic Acid from downstream industries, including Polyamide 66 and related sectors. In response to this uncertainty, manufacturers have taken proactive measures by reducing their inventories. Moreover, their approach to order has become more conservative, focusing on placing orders primarily based on specific customer demands. This cautious stance and inventory management reflect the challenging business environment in Germany, emphasizing the impact of broader economic uncertainties on the demand dynamics for Adipic Acid in the region.