For the Quarter Ending March 2023
North America
During the first quarter of 2023, the market for Adipic Acid witnessed a declining trend in the US market due to the weak demand from the downstream industries. The downstream Polyamide 66 industry also observed a steady price trend in the domestic US market. Additionally, a negative price trend brought about by an increase in natural gas production and a decrease in demand in the United States supports the petrochemical commodities. Regardless, unexpectedly, business activity in the United States rose to its highest level in eight months in February 2023. New export orders contracted for the tenth successive month at the end of the first quarter, as overseas demand conditions remained historically subdued.
APAC
During the first quarter of 2023, the market for Adipic Acid witnessed an inclining trend in the Asian market due to the moderate demand from the downstream industries. In China, the upstream Benzene prices soared throughout this quarter, which led to the downstream commodities, including the Adipic Acid market. In the last month of the first quarter, the demand for the product was reduced across the globe due to a stagnant overseas economy. On the other hand, in India, cheap imports from the overseas market during March 2023 that had lower prices pushed the product's cost in a downward direction. Consistent vendor performance appeared to indicate that supplier capacity was sufficient to fulfill the downstream demand.
Europe
During the first quarter of 2023, the market for Adipic Acid witnessed a declining trend in the European market due to the product's widespread availability in the market. German exports are being negatively impacted by the weak global economy, but rising inflation rates were also having a negative impact on consumer spending and textile activity due to diminishing purchasing power and dramatically higher financing costs. ECB has raised interest in controlling the inflation rate and willingness to provide banks with liquidity in the face of recent banking sector turmoil. When interest rates rise, demand usually falls, and this can cause the global textile industry to suffer.
For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, the price of Adipic Acid rose during the first two months before it fell in the US market. During the first half of the quarter, with the high orders from the buyers, the manufacturers raised the cost of the product. Despite the feedstock prices decreasing, the cost of Adipic Acid inclined due to the limited availability and continuous orders from the downstream industries. The petrochemical product prices moved north as a result of high-interest rates and high inflation in the US. The approaching holiday decreased demand from the end-use industries in the textile and, electrical & electronics sectors. In addition, in the face of inflation, domestic consumers tended to wait and buy.
APAC
During the fourth quarter of 2022, the price of Adipic Acid decreased in Asia. The interest from the downstream business was a low and bountiful stockpile of the product in the field, declining the price of Adipic Acid. Additionally, the price of upstream Benzene and feedstock Cyclohexanone decreased in Asia, supporting the costs of the downstream industries. The downstream PA66 industry remained sluggish, and the market moved down. Additionally, the inventory of Adipic Acid in the regional market was high, and some Chinese plants' operating rate of PA66 textile filament manufacturing facilities decreased. Some Adipic Acid plants were shut down for maintenance in China during Q4. At the same time, in India, the consistent stockpile from traders and surplus availability declined the expense of the product. The market saw fewer orders from end-use industries as the year drew near.
Europe
During the first two months of the fourth quarter of 2022, the price of Adipic Acid in Europe increased, but the trend picked up a downward trajectory in the final month. The supply chain was disrupted due to the region's port congestion and cargo bunching. In addition, energy prices were high in the European market due to the high operational cost of producing the product. In December, the demand from the downstream industry was weak, and the consumers were reluctant to buy the product due to imminent recession and inflation in the region. As a result of low demand, the manufacturers reduced the production rate of Adipic Acid. Further, the upstream Benzene prices dropped and supported the downstream derivative industries in the Eurozone.
For the Quarter Ending September 2022
North America
The Adipic Acid prices showed an inclined trend in the North American region throughout the third Quarter of 2022. North America is one of the major supply hubs for engineering polymers, making it a potential destination for Adipic Acid. The high consumption from the end-use industries such as Nylon 66 and Polyurethane and demand from importing countries like Canada contribute to this price hike in the region. The supply chain was disrupted in the area, and delays in goods delivery to their destination due to port congestion during the third Quarter were observed. As a ripple effect, the cost of Adipic Acid hovered around USD 3233/MT on a FOB New Jersey basis during the quarter ending.
Asia Pacific
In the Asia Pacific region, Adipic Acid fell during the third Quarter of 2022, and the feedstock Cyclohexanone saw a downward trajectory in the market. The imported cargos price has declined in the Indian market. The low demand from the downstream Polyamide derivatives has constrained the price of Adipic Acid. Regarding inventory levels, the port's inventory position was acceptable, and the volume of overseas goods arriving was average in the Asian market. The upstream Benzene prices dropped due to poor buying sentiments and supported the downstream chemical derivatives in the Asian market. Some plants were shut down in the final month of the third Quarter of 2022, at the beginning of September, due to natural disasters that struck China, Japan, and South Korea. The cost of Adipic Acid hovered around USD 1474/MT on a FOB Qingdao basis during the Quarter ending September.
Europe
In the Third Quarter of 2022, the market sentiments for Adipic Acid in the European region showed a southern direction due to low consumption from the downstream industries. Despite a lack of supply from manufacturers due to port congestion in the region, the market had a sufficient supply of products, which limited price movement. Italy-based Radici company declared force majeure on mid of September for Adipic Acid and Polyamide due to the high price of natural gas and raw materials. The average price of Adipic Acid settled around USD 3733/MT on a FOB Hamburg basis, with a quarterly decline of 4% during the end of the third Quarter.
For the Quarter Ending June 2022
North America
In the second quarter of 2022, Adipic Acid prices surged in the North American region with an escalation of 14.3%, especially in the US market. Fluctuating Benzene prices due to the variations in the global petrochemicals market caused by the ongoing war between Russia and Ukraine supported the market. The surging demand from downstream Nylon-6,6 and other textiles markets put cost pressure on the product's prices, which led to a shortage of inventories and fewer products to be stockpiled with the traders and the suppliers. The war also caused a lack of shipments globally which affected the downstream market sentiments.
Asia
In May, the prices of Adipic Acid fell in the Asian market during Q2, 2022, with costs ranging from INR 171725/ton Adipic Acid Ex-Depot Ahmedabad in India with a quarterly decline of 5.9% as per recorded by the ChemAnalyst pricing team. China, a significant exporter of Adipic Acid, saw a decrease in demand from the importing Asian countries. The market quotations were observed lower, and prices of pure Benzene fell, further weakening the Adipic Acid support. The downstream demand for Nylon-6,6 fell, affecting the market sentiments, thus increasing the inventories within the region with the traders. As the market entered the off-season, sales slowed significantly, forcing companies to cut prices and run out of stock. From a trader's point of view, traders had an ample supply when the market was high in the first quarter. Markets fell in April and May, forcing holders to reduce inventories and companies to lower prices to sell their goods.
Europe
The European market saw a rise in the prices of Adipic Acid during the second quarter of 2022, with costs hovering at USD 3709/ton Adipic Acid FOB Hamburg with a quarterly escalation of 3.7% as compared to the previous quarter. Escalation in demand for the product from the importing countries like Italy, Spain, and the Netherlands supported the upward escalation. Upstream feedstock Cyclohexanone and Benzene prices rose due to the Russian invasion of Ukraine, which led to a shortage of products with the traders. Variations in the freight charges globally were also one of the main reasons for the price surge.
For the Quarter Ending March 2022
North America
The prices of Adipic acid witnessed fluctuations during the 1st quarter of 2022 across the North America region on the back of the stabilized demand from the downstream polyamide and its end-user industries. The prices of Cyclohexanone and Cyclohexane (feedstocks) increased towards the end of the period as consumers started to secure the material, which influenced the Adipic Acid prices in the region. Furthermore, volatile Crude oil prices boosted the inflationary costs of derivatives at the quarter end, which impacted the values of Adipic acid in H2 of Q1. In the domestic market, after witnessing a decrement of 13% in the last quarter, the FOB prices were accessed at USD2145/tonne on month ending March 2022.
Asia Pacific
In China, the prices rose rapidly in the initial month of Q1 as prices of feedstocks were high and demand from the importing countries and polyamide industry remained elevated. However, the price trend was firm in February and March because of stable demand and increased supply in the domestic market. The prices of Adipic acid after increasing by 9% from the last quarter of 2021, got settled at USD2190/tonne in the month ending March. Similarly, in the Indian market, the prices rose continuously, especially in January, because of limited supply from China due to port congestion, which however, later got stabilized in February. In March, robust demand from the downstream textile industry and disruption in the supply chain from China impacted the prices, which were recorded at USD2414.65/tonne on CFR basis in India.
Europe
In the European region, Adipic Acid prices rose during the first half of Q1, which later got firm after the second week of February. The rise in the prices of Crude oil towards the end of Q1 led to the inflationary pressure on the downstream derivatives of Adipic Acid. As the energy costs was also running high in winter months, it also influenced the production cost of Adipic acid and its derivatives in the downstream industries. The continuous rise in the freight charges and less supply of feedstock impacted the production rate in the country. After observing an increment of 17% in the last quarter of 2021, the values were assessed at USD3672/tonne by the end of Q1 2022.
For the Quarter Ending December 2021
North America
Stagnancy in feedstock benzene prices and change in market sentiment have pressured manufacturers to maintain minimum fluctuations in overall prices of Adipic Acid. Demand stabilization from downstream polyamide in lieu of ongoing holiday season has further deterred the market sentiment. Imports from South Asia have dropped significantly vindicating the change in market outlook. December Adipic Acid prices were stable at USD 2635 per MT FOB New Jersey in USA. North American region observed winter holidays which resulted in demand stagnation and at times demand deterioration impacting the overall market outlook during the quarter.
APAC
In China, Adipic acid market started the quarter on strong note where influx of demand and rising cost of feedstocks resulted in robust pricing for the available material. Increasing trend continued for the major part H2 of Q4, however demand declined towards the end of the year which culminated in sudden drop in prices of Adipic Acid. FOB Qingdao price of Adipic Acid dipped in December to USD 1856 per MT. China also struggled with production as dual control policy constrained operating rates.
Europe
European market sentiment maintained bullish outlook throughout the quarter owing to consistent demand and declining supply dynamics. Supply of several petrochemicals including Adipic acid struggled throughout the quarter as falling Rhine water levels hampered barge traffic and load capacity of vessels. Market participants were forced to keep an upward pressure on the prices in the wake consistency in demand and snug supply. Adipic Acid prices increased in December to USD 3279 per MT on FOB basis.
For the Quarter Ending September 2021
North America
Adipic prices in the North American region showed a sharp decline in Q3 2021 due to better market supplies as production levels improved over Q2 2021. Downstream PA 66 prices showed a much-needed fall between July-September thereby narrowing spread between Polyamide 66 and the feedstock Adipic Acid. Production cost of the key US Adipic acid producers came down during the quarter under supportive prices of Adipic Acid and hence margins improved. However, the decline in prices seemed to be short-lived as rapid escalation of freight rates and disruption in production levels due to hurricane ’Ida’ triggered regional tightness and rebounded Adipic Acid offers.
Asia Pacific
The volumes of Adipic Acid and its salts imports in China grew by more than 50% y-o-y in July, with Germany as its key exporter. While the volume of Adipic Acid exports out of China also rose by double-digits during the same period. In August, the market price of Adipic Acid showed a considerable fall across Asia due to ample supplies. However, the percent decrement in the offers was limited under raw material Benzene uncertainty which continued to trade above $950/mt throughout the quarter. FOB Qingdao (China) Adipic Acid price was assessed around $1655/mt towards the end of August and slipped to $1620/MT levels in early September. Surges in raw material and improved downstream demand from PA66 manufacturers with the arrival of peak demand season towards the end of Q3 kept the market sentiments high. Cheaper Chinese imports compelled Indian manufacturers to keep their prices lower this quarter.
Europe
The European Adipic Acid supplies continued to stay tight due to healthy demand prospects from downstream Polyamide producers. Raw material supplies stayed under pressure due to dented supply chains and port-congestion issues. As per market players, downstream demand from the automotive industry remained under pressure due to shortage of semiconductor chips. Towards the end of September, DOMO Chemicals, a leading European producer announced to increase price for its Adipic Acid by $164/mt w.e.f. October, taking into account strong escalation in the prices of natural gas and electricity costs.
For the Quarter Ending June 2021
North America
Adipic Acid demand in USA remained firm during Q2 2021, in effect of improving production activities following the economic recovery in the country. Prices of Adipic Acid rose initially during the month of April, due to the shortage of feedstock chemicals after the freezing fallout in the Gulf of USA. Later, prices started declining effectively in the second half of the quarter, as major plants resumed their production activities, which effectively improved the availability of the product across North America. Therefore, after attaining its peak value in April i.e., USD 1730/MT, its prices declined effectively and reached USD 1650/MT during the month of June.
Asia
Dull regional demand and abundant spot availability dragged the price curve of Adipic Acid in complete Asian market. China showcased sufficient availability and feeble demand from textile market, as the manufacturers were running on high capacity, since they were getting better netbacks from the international market. Thereby, prices of Adipic Acid hovered around USD 1514/MT for China during mid of June 2021. Meanwhile, Turkey imported most of the Adipic Acid from China on an average price of USD 1524/MT during this timeframe. In addition, in the Indian market, prices of Adipic Acid declined effectively in effect of dull market sentiments due to the pandemic mayhem.
Europe
European Adipic Acid market showcased mixed sentiments during Q2 2021, as the demand improved in comparison to the prior quarter whereas supply activities remained sufficient to satisfy the overall need. Despite of successful vaccination drives and post pandemic recovery, textile sector struggled to attain normalcy, thus some textile majors urged government to provide aid to this sector. Therefore, the price of Adipic Acid remained stable to low range during this quarter in European region.
For the Quarter Ending March 2021
North America
The availability of Adipic Acid remained low during Q1 2021. Low inventory levels and supply shortage initiated during Q4 2020 when multiple hurricanes hit the region, which was followed by the winter storm Uri which led to freeze fallout and force majeures at several chemical and petrochemical facilities across the gulf coast region. While supply remained tight as a repercussion of storm related production halts, improved demand from the derivative Nylon 66 industries further raised regional Adipic Acid offers. Downstream polyamide and textile sector added to improved market prospects which supported rise in Adipic Acid prices across the region. FOB New Jersey price for Adipic Acid touched USD 1690 in the last week of Feb, showing a spike of nearly USD 150 per MT over the settlements in the final week of January.
Asia
The Asian Adipic Acid market showed improvement during Q1 2021. This rise was initiated with improvement in service sectors and ongoing winter season. Majority demand for Adipic Acid was coming from Nylon 66 manufacturers, to satisfy demand from the textile sector. Though the prices of Adipic Acid were souring throughout the quarter backed by tight container availability in Asian countries like India, shortage of Adipic Acid from the international suppliers pushed up the regional offers. CFR India price of Adipic Acid rose from USD 1345 per MT (January 2021) to USD 1782.84 per MT. Chinese lunar holidays further tightened the availability of Adipic Acid across the region and hence inventories of manufacturers in China were pressured.
Europe
Across the European region, cold weather conditions halted several plant activities and reduced the availability of Adipic Acid during Q1 2021. Evonik, a major producer of Adipic acid in Germany, declared force majeure on its plant in Marl, Germany. In addition, Radici Chimica, another major manufacturer also declared force majeure at its 80,000 MT/year Adipic Acid plant due to cold weather conditions across Germany. These major shutdowns disrupted the supply of Adipic Acid across the region, thereby raising regional prices by double digits over the previous quarter.
For the Quarter Ending December 2020
North America
Demand for Adipic Acid across North America remained low due to the feeble consumption of downstream Nylon 66 in the final quarter of 2020. However, due to surge in demand from recovering automobile and textile industry coupled with the supply shortage due to Hurricane Zeta in the region, its prices considerably increased by the end of Q4 2020 which led to an increase in the prices of Nylon 6 & 66 as well.
Asia
During Q4 2020, Asian market witnessed astonishing boom in textile demand backed by the significant fall in COVID-19 cases and recovery in various industrial activities. In addition, festive season and winter also helped in revival of the textile market in Asian countries like India which increased the demand for Nylon 66 and eventually affected the consumption of raw material Adipic Acid in the regional market. INVISTA, a major Nylon 66 producer in China successfully completed the expansion of its Nylon 66 production plant at Shanghai Chemical Industry Park (SCIP) in November 2020. This expansion is expected to solve the regional supply problem majorly across China and Asia in the long run.
Europe
Supply of Adipic Acid in Europe remained short during Q4 2020 as LANXESS, a major Adipic Acid player operating in the region, adhered force majeure in its manufacturing unit due to some technical issue. Later in December, LANXESS decided to increase the prices of Adipic Acid to USD 109 per MT due to the significant rise in raw material cost. Amid the second wave of COVID-19 in November the demand for downstream Nylon 66 remained low however, due to the regional supply shortage Adipic Acid prices witnessed appreciable spike.
