Weak Orders Constrain the German Adipic Acid Market in February 2023

Weak Orders Constrain the German Adipic Acid Market in February 2023

Weak Orders Constrain the German Adipic Acid Market in February 2023

  • 14-Mar-2023 5:21 PM
  • Journalist: Robert Hume

The price of Adipic Acid in Germany fell in February 2023 due to weak orders from the downstream textile industries in both the domestic and international markets. The demand for Adipic Acid in Germany dropped in February, and the product got stocked up in the regional market. The downstream producers noticed a relentlessly steep decrease in trade deals, driven by a decrease in new orders. Further, the feedstock for Adipic Acid also supported the declined price trend due to weak-cost pressure from Cyclohexanone (-2%) in February 2023. Tensions in the supply chain significantly eased in February 2023, and average input costs for producers of goods decreased.

In Germany, the inflation rate was 8.7 percent in February 2023, as measured by the Year-on-Year (YoY) change in the Consumer Price Index (CPI). In January 2023, the inflation rate was also 8.7 percent. Excluding energy prices, the inflation rate in February 2023 was 7.6 percent.

In February 2023, the textile industries (downstream of Adipic Acid) total amount of new work received decreased for the ninth month in a row. However, the rate of contraction was only mild and the weakest during that sequence, suggesting that the trend was continuing to stabilize. The cost-of-living crisis and lower export orders were the reasons given by companies for lower new business intakes. On the other hand, those who observed an increase reported higher levels of client confidence and indications of economic stabilization or recovery.

As per ChemAnalyst, the cost of Adipic Acid hovered around USD 3274/MT on a FOB Hamburg basis with a monthly decline of 3.9% during February 2023.

According to the experts, the cost of Adipic Acid is expected to decline in the coming weeks if the weak orders will intact in the region. It is anticipated that Adipic Acid is likely to decline by 0.5% to 1% in the current month.


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