According to the data from a large list of business associations, the domestic adipic acid market remained stable this week compared with last week, and dealers’quotations maintained the previous price, up or down by 0% as a whole. By the end of the weekend, the quotation is generally between 8100 and 8200 yuan/ton.
II. Analytical Review
This week, the adipic acid market has stabilized. The market has experienced a small rebound in late June. At present, the market is weak, the market atmosphere is slightly cold, distributors are active in delivering goods. The adipic acid market has risen and fallen within 100 yuan, and the market remains weak and volatile. At present, the downstream market has a heavy wait-and-see mentality and slightly rigid turnover. Hold, the merchant saves the profit space. Social inventories are still under pressure, with shipments slightly lower than last week.
On the supply side, the supply pressure is still in place. Many distributors say that the stock pressure is high, the start-up rate of the plant is high, and the inventory of the manufacturer also shows some pressure. This week, the distributors take goods one after another. At present, the market is still mainly de-stocked. Therefore, the market is flooded with low-price goods, and the overall supply pressure of the market is high, leading to distribution. Businessmen have a strong willingness to reduce prices to inventory, so there is room for profit. Market price quotation and actual transaction still have price difference. The quotations of distributors in North China, East China and South China have been adjusted to varying degrees. Most of the districts remain weak.
In terms of demand, the downstream demand lacks substantial improvement and the downstream start-up rate is still slightly inadequate. The start-up rate is about 50%. It has not effectively boosted the upstream adipic acid. The market is still in the depot cycle. In addition, the cost side also makes adipic acid show some pressure. The upstream pure benzene price continues to hover at a low level. According to the monitoring of business associations, the reference price of East China market is about 8000-8200 yuan/ton, and the price of South China is generally between 8100-8300 yuan/ton.
3. Future Market Forecast
The analysts of adipic acid in the chemical branch of business association believe that the price is relatively stable at present, adipic acid is still in excess supply and the market is mainly de-stocked. Therefore, Business Association believes that adipic acid market is difficult to get out of the watershed in the short term, or maintain a weak market in the near future.