Adipic acid prices moved down in major global markets during early April 2025, with China seeing a steeper fall than the United States. Market conditions in both economies shared a similar tone of supply-demand mismatch but driven by different forces. While China’s price drop was steeper due to intensified oversupply and weak downstream sentiment, the U.S. market saw a more moderated weakening amid geopolitical and logistical challenges.

In China, Adipic Acid prices fell drastically in the first half of April under pressure from chronically poor demand and plenty of supply. Although producers have been trying to cut inventories by lowering plant operating rates—at an average rate of 56%—the market continued to be oversupplied. Cyclohexanone feedstock prices remained subdued, while a modest increase in benzene failed to lift mood, as the sharp fall in crude oil prices weighed down on overall cost structures.

The wider recovery in manufacturing, seen in the pickup of the national PMI, did not feed through into the consumption of adipic acid, especially in key segments like Nylon 66 and textiles. Customers continued to hesitate to enter long-term contracts with large volumes, opting instead for cautious, short-term procurement strategies amid volatile pricing and tepid end-user interest.

Export demand too trailed as well on the back of weak international competitiveness, reinforcing a wait-and-watch approach in the Adipic Acid marketplace.

In the US, Adipic Acid prices held largely steady but displayed a slight weakening tendency through mid-April. The local market functioned within a delicate balance between stable supply and sluggish demand, with producers managing inventories prudently after scaling back raw material procurement in March.

While feedstock costs like benzene and cyclohexanone were stable and gave some relief to margins, production activity for Adipic Acid was moderated to account for hesitant downstream pull. Delivery times were an issue, with reported average lead times reaching as long as six months as a result of customs delays and vendor-level shortages. Policy risks due to tariffs on major trading partners hung over supply chain planning. Downstream automotive demand was indicating front-loaded activity in March, driven by buyers expecting tariff increases, but this did not carry over into a sustained adipic acid consumption recovery in April.

In the future, the Adipic Acid market in China and the U.S. is set to continue facing pressure unless there is a definitive rebound in downstream demand. In China, the short-term picture is overshadowed by ongoing oversupply and cautious end-use markets, while in the U.S., possible trade policy changes and extended logistical bottlenecks may further complicate supply dynamics for Adipic Acid.