The Chinese and German prices of Adipic acid followed divergent directions during the week ending October 31, 2025. Chinese prices continued to weaken 0.6% due to subdued demand, soft feedstock costs, and cautious trading activity, while German prices were supported by higher raw material cost pressures but held stable due to sluggish downstream consumption.
In China, Adipic acid prices moved lower over the week as the market continued to grapple with weak fundamentals and persistent oversupply. Feedstock costs offered no meaningful support—as cyclohexanone and benzene prices remained at depressed levels— therefore lowering production expenses. Despite stable plant operating rates, inventory pressure mounted on producers amid limited downstream consumption.
The domestic PA66 sector, a key consumer of Adipic acid, operated at about 69% of capacity, indicating substantial oversupply within the polymer chain and reduced need for replenishment of raw materials. Consequently, the manufacturers of PA66 delayed placing new orders for feedstock, which directly curtailed offtake of Adipic acid. The tepid performance of associated end-user industries-which include textile weaving and industrial materials-further constrained demand, deepening the supply-consumption imbalance.
In order to retain cash flow and breathe new life into deals, suppliers eventually had to offer price reductions, but these attempts were unsuccessful in reviving significant trade activity. Due to surplus supply, low procurement appetite, and waning cost support, the Chinese Adipic acid market generally maintained a pessimistic tone.
On the other hand, German Adipic acid prices were relatively stable in the same period as an increase in feedstock price lent some support. Upward movements in cyclohexanone and benzene prices provided partial cost-side support—enabling producers to sustain current pricing levels despite subdued market activity.
However, downstream consumption remained soft, limiting any scope for Adipic acid price improvement. Buyers adopted very conservative, hand-to-mouth procurement strategies due to tight budgets and poor forward visibility. PA66 markets saw subdued activity with fragile sentiment and intense competition prompting careful Adipic acid buying.
Downstream application sectors— particularly automotive and construction—continued to suffer from chip shortages and slow project starts, respectively. In addition, competitively priced imports from overseas markets challenged European producers' ability to improve prices despite rising costs. The general tone for Adipic acid was defensive with sellers keen to preserve liquidity rather than expand volume sales.
Looking ahead, players in Adipic acid markets of both countries expect limited movement to persist in the near term. In China, oversupply and poor activity on the downstream side are expected to continue putting downward pressure on prices in November. In Germany, while cost-side firmness lends partial stability, the weak macroeconomic outlook and lacklustre demand from major consuming sectors will cap gains.
Moving into 2026, a slow and irregular recovery is expected to be influenced by restrained industrial activity, persistent competition, and cautious restocking behaviour across the nylon and polymer value chains.
