The global Adipic Acid market showed varied patterns in early March 2025, influenced by localized supply-demand balance, industrial production, and trade policies. Whereas China struggled with lingering oversupply and sluggish demand, Germany saw limited price rises because of supply tightness, and U.S. maintained equilibrium through balanced fundamentals.

During the first half of March 2025, China's Adipic Acid market was under downward pressure because of oversupply and poor demand. Manufacturers reduced output to manage inventory, but surplus levels remained high, compounded by low raw material prices. Downstream industries, especially automotive, faced poor Adipic Acid demand, as seen in the drop in passenger new energy vehicle (NEV) retail sales in February.

Despite a revival in the manufacturing activity, which indicated broader industrial upturn, Adipic Acid market sentiment remained subdued, as consumers were reluctant to order fresh stocks. The combination of ample supply and soft demand is likely to continue the price downfall until March, with few indications of any near-term revival.

Whereas Germany's Adipic Acid market experienced a small price hike of 0.5%, on the back of supply shortages over demand growth. Even though feedstock cyclohexanone prices dropped, lowering production costs, operational disruptions at major production plants, shipping congestion, and increased supplier costs limited overall market availability.

On the demand side, the automotive sector showed signs of recovery, with a marginal boost in business confidence during February. Yet this optimism was not reflected in higher Adipic Acid consumption, as registrations of new passenger cars fell 2% from the prior month. While domestic procurement was weak, improving export prospects and rebounding eurozone motor vehicle orders gave tentative hopes for demand stabilization.

The U.S. Adipic Acid market, however, evidenced price stability, with steady supply being balanced by resilient demand. Supply remained robust supported by continued manufacturing activity, stable raw material prices, and inventory management despite extended lead times and vendor labour shortages. The temporary halt in planned tariffs on Mexican and Canadian imports also contributed to supply chain stability.

Demand was steady, led by consistent procurement from the automotive industry, where a month-to-month increase in vehicle sales fuelled Adipic Acid consumption. Pre-emptive procurement before a possible tariff served as short-run support for demand, but the larger trade policy uncertainty and reduction in consumer sentiment injected caution.

According to ChemAnalyst, the global Adipic Acid market is likely to follow divergent trend driven by geographic supply-demand scenarios, economic sentiment in the near term. In China, the persistent oversupply and weak demand, especially in the auto industry, could continue to weigh on Adipic Acid prices. While Germany's market could see gradual stabilization as supply situation improves and auto demand begins to show signs of recovery. In the United States, price stability should prevail, underpinned by strong local demand, although outside headwinds like the uncertainty of trade policies and waning export orders could be troublesome.