Approaching Chinese New Year impacted the prices of Adipic Acid in India

In India, the prices of Adipic acid skyrocketed and surged to $2462/ton Ex Depot Delhi NCR and $2420/ton Ex Depot Ahemdabad with week-on-week inclination of 3.96% and 3.92% respectively. The prices observed to surge from the month of September 2021 due to robust demand and limited supply from China.

Ahead of the upcoming Chinese Lunar New Year, Seoul had asked refiners to keep the prices of Adipic Acid on the higher end. The emergence of Omicron just before the New year and Winter Olympic weaken the Petrochemical industries operating rate as most industries are heard to be operating their plant with only 70% of their efficiency. China imports almost 72% of Adipic acid from China and upcoming events in the China hampers its trading activities. In China, the prices of Adipic acid surged to $1978/ton FOB Qingdao. Adipic Acid demand in the Indian market was observed to be robust with increase in its demand from the downstream enterprises. Plasticizers and Nylon 66 manufacturing industries were majorly affected with this trend. Lack of feedstock pressurized the producers to fulfil the market demand and meet their requirement.

According to ChemAnalyst, the prices of Adipic acid in India will surge even more amid robust demand and bearish downstream market. It is expected that the prices of Adipic acid in February month will be on the higher side due to upcoming winter Olympic and Lunar New year which will affect the trading activities of China, hence the import of India. Indian downstream market more likely to remain bullish and the prices for the product among the consumers are expected to remain high. However, increasing Omicron variant cases also affected the Indian Petrochemical market and industries are expected to operate their plants cautiously according to the consumer needs.