Quarterly update on Adipic Acid market
For the Quarter Ending December 2020
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.
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.
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.
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ChemAnalyst gathers information through primary research surveys conducted with various Adipic Acid manufacturers, spread across the domestic and international market, suppliers and dealers/distributors to gain insights into value-chains and demand-supply scenario to assess the market situation. Thorough study of company’s annual reports and secondary sources such as exhaustive search on credible paid databases, including our internal database is done to verify the information. All the collected information is analyzed, evaluated and presented in chronological order to depict a meaningful and clear picture of the concerned market.
Our dedicated team of industry experts comprehensively monitors and analyzes various aspects of the Global Adipic Acid market. The team analyzes various industrial segments, strategic viewpoints and provides an analysis of the industry’s performance in the long run. This would enable our clients in efficiently plan their future investments, mitigate risk, understand the cost dynamics and strike out a balance amidst market volatility.
Critical examination of the impact of COVID-19 pandemic on the global supply chains and shift in demand patterns with change in buying behavior of consumers across the globe.
Several ongoing development projects across industries are tracked, followed by the details of major projects in the development stage, which can positively or negatively influence Global Adipic Acid market.
Pricing is captured through exhaustive primary interviews with domestic and international manufacturers, traders and importers and customers on monthly and yearly basis.
Finally, region-specific markets for Adipic Acid are analyzed and region-wise demand pattern is tracked.
Adipic Acid is one of the most important industrial carboxylic acid with white crystalline solid structure, insoluble in water. Adipic Acid is produced by oxidising ‘Ketone Alcohol Oil’ or ‘KA Oil’ by Nitric Acid. Further this Adipic Acid is treated with Hexamethylene Diamine (HMD) to produce Nylon 66. Basically, most of the Adipic Acid produced, is used as a feedstock to produce Nylon 66. Later, this Nylon 66 is used as a feedstock to manufacture Nylon Filament Yarn (NFY). Adipic Acid is also used as a plasticizer for Poly vinyl chloride (PVC) as it increases the elasticity of PVC. Nylon 66 is utilized for numerous applications such as making apparels, automobiles seats and others. Nylon fibres are extensively favoured in industries over other available alternatives, due to its durability, non-corrosive nature, and high tensile strength.