Another Blow to European Adipic Acid Market, Radici Announces Force Majeure
- 16-Sep-2022 1:48 PM
- Journalist: Peter Schmidt
In the latest events, a well-known Italian company Radici declared force majeure on September 14th, 2022, for resins, Adipic Acid and at the Novara Plant, Italy. The company also announced that it would shut down Polyamide 6.6 production at the above plant. The Italian market never expects this kind of shutdown or force majeure in the country. The force majeure might lead to the price inflation of Adipic Acid and a supply shortage in the domestic market.
The current market situation in Europe is facing an energy crisis due to the recorded high price of natural gas in the regional market. The companies cannot run the plant smoothly due to the hike in energy values. The supply cut for the products mentioned above in the upcoming days is owing to the declaration of force majeure in the country. The importing countries might face a shortage in supply of these products due to this sudden announcement of force majeure.
Polyamide 6,6 and Adipic Acid prices were stable in the country due to the decline in feedstock Cyclohexanone price since mid of August in the domestic market and weak demand. Furthermore, the automotive and textile industries remained weak, and downstream Caprolactam derivatives remained stable in the European region. Hence, during the week ending on September 09th, the price of Adipic Acid in Italy was recorded by our pricing team at about USD 3795/MT on an FD Milan basis with a marginal inclination of 0.5%.
As per ChemAnalyst, the price of Adipic Acid, Polyamide 6,6 products might incline in the European market owing to the announcement of the force majeure. The shortage in supply and inadequate product availability may increase the price in the European region. The demand from the downstream industries is weak, and the cost would balance the market.