Adipic Acid Values Intertwined with Feedstock Prices in China
- 18-Aug-2022 4:56 PM
- Journalist: Nina Jiang
Singapore: The cost support from the upstream has diminished persistently since the August start, the domestic Cyclohexanone market varied, and the demand from downstream Polyamide-6,6 lacked support. Overall the pure Benzene market was average, as both the supply and demand sides were constrained, which varied at an elevated level. It attenuated to a limited range because of the delay in shipment of upstream feedstock Cyclohexanone to the regional market. The Adipic Acid market struggled, and overall consumer confidence in procurement was low.
This week, the domestic Adipic Acid price declined on the upstream feedstock side. The cost aspect is still problematic, and there is a lack of confidence in the upstream pure Benzene market. Currently, there is little market demand, the inventory pressure is not being relieved, and manufacturers' warehouse stock prices are decreasing, which has stifled market sentiments.
Regarding the industry's operating rate, the Polyamide-6,6 load level in the domestic market kept declining in the previous period because of ongoing pressure on Polyamide-6,6 businesses' earnings. The market's spot supply has shrunk, and the supply squeeze has subsided. Port-wise, the inventory situation is respectable, and the number of foreign sources arriving is typical. The contemporary terminal businesses are more likely to follow up with the items to continue production in demand, and the resistance to expensive supply is vital.
The workload of Polyamide-6,6 businesses is low, the field's supply-demand imbalance is poor, the demand side is insufficient, and there are few transactions. In the short term, there is a projection that the delay in downstream follow-up may still affect Polyamide-6,6, primarily focusing on sorting activities. The spot depreciation of pure Benzene may be less pronounced than crude oil if prices continue to decline, but the price slide is still halting. According to Chem Analyst, the Cyclohexanone market will experience a short-term impasse.