The Adipic Acid market displayed a mixed performance across major regions during the first half of January 2025, with price trends varying significantly between China, the US, and Germany. While China experienced a modest price increase fuelled by improving demand and rising raw material costs, the US and German Adipic Acid markets remained relatively stable, reflecting distinct regional economic conditions and supply chain dynamics. Overall, the market demonstrated resilience despite persistent inflationary pressures and geopolitical uncertainties.

In China, Adipic Acid prices saw a slight uptick, driven primarily by a strengthening in benzene and cyclohexanone prices, key raw materials. Post-New Year, increased purchasing activity from the automotive and textile sectors further contributed to this positive price movement. The automotive sector's consistent performance provided strong demand support, while the textile industry, initially subdued by pre-holiday shipment deadlines, experienced a recovery in post-New Year production. This positive demand coupled with stable supply levels suggests a cautiously optimistic market outlook for Adipic Acid in the short-term, with the potential for sustained price growth depending on the continued recovery in both automotive and textile sectors.

The US Adipic Acid market exhibited price stability throughout the first half of January. This stability can be attributed to the resolution of potential port strike concerns, which ensured uninterrupted supply chains and stabilized freight costs. Despite lingering inflationary concerns and economic uncertainties affecting consumer sentiment, the market remained largely unaffected by these pressures due to balanced supply and demand. The stable feedstock prices contributed to consistent production costs, further reinforcing the price stability for Adipic Acid.

In Germany, the Adipic Acid market also remained stable during the period. This stability was the result of a balance between upward pressure from rising international crude oil prices and a stronger overseas benzene market, offset by lower cyclohexanone costs. While logistical challenges, including port congestion in Hamburg, created some supply chain inefficiencies, muted Adipic Acid demand from the automotive sector limited price volatility. Cautious production strategies within the automotive sector, driven by high costs and weak consumer confidence, further dampened any potential price increase.

Looking ahead, the Adipic Acid market's future trajectory hinges on several key factors. Continued recovery in downstream sectors, especially in China and globally, will be critical to sustained price growth. Conversely, persistent inflationary pressures in the US and Europe, coupled with any unforeseen geopolitical events, could lead to instability in Adipic Acid market. Resolution of ongoing supply chain disruptions in Europe and maintaining steady raw material costs will also be important in determining future price movements. Overall, maintaining balanced supply and demand will be key to sustaining market stability in the coming months.