For the Quarter Ending December 2024
North America
The North American Adipic Acid market demonstrated quarter-on-quarter stability in Q4 2024, with prices showing slight improvements as the quarter progressed. Early in the quarter, demand from downstream industries such as automotive and textiles remained weak. The U.S. vehicle market faced stagnation, with reduced production volumes curbing the need for Adipic Acid, a key raw material in nylon-based automotive components. Logistical disruptions from hurricanes and supply chain bottlenecks further extended delivery times, limiting procurement activity.
Mid-quarter, a seasonal boost in consumer sentiment, driven by holiday promotions and discounts, provided moderate support. However, inflationary pressures and anticipation of potential tariff increases under the new Trump administration introduced some uncertainty.
The quarter's end saw continued price improvement, with Adipic Acid DEL Houston closing at USD 1530/MT. Holiday-driven textile demand slightly offset weak automotive activity, while ongoing logistical hurdles, such as elevated transpacific freight rates, created lingering cost pressures. This reflecting the overall unchanged quarter-on-quarter performance, though exhibiting upward momentum towards the end of Q4 2024.Market participants remain cautious as the possibility of tariff-induced supply chain disruptions looms over the coming year.
APAC
The Adipic Acid market in the APAC region saw a 5% decline in Q4 2024 compared to Q3, primarily driven by weak demand from downstream sectors such as automotive and textiles. A global shift away from synthetic fibres, spurred by environmental concerns, coupled with a slump in benzene prices, a crucial feedstock for Adipic acid, further pressured prices downward. Mid-quarter, while feedstock costs, particularly for benzene, experienced slight increases, they had minimal impact on Adipic acid prices, as the overall demand remained weak. The market also faced logistical challenges due to Typhoon Kong-rey, which caused severe delays at key ports in China and Taiwan, exacerbating supply chain disruptions and extending lead times. Despite efforts to clear these backlogs, the easing of supply chain issues in the latter part of the quarter did not significantly improve market conditions. Export orders continued to soften amid global economic uncertainty, and the market remained subdued. By quarter-end, the price for Adipic Acid FOB Qingdao stood at USD 1050/MT, reflecting an ongoing oversupply and lack of robust demand, signalling a cautious outlook for the near term.
Europe
The European Adipic Acid market experienced a sharp 24% decline in Q4 2024 compared to Q3, reflecting a challenging economic environment, and subdued downstream demand. Weakness in the automotive sector, a key end-use market, remained a significant driver of the downturn. German automakers faced declining production levels, increased competition from Chinese electric vehicles, and a drop in consumer interest. Simultaneously, the textile sector struggled with oversupply and reduced orders, as sustainability trends and cost-conscious spending reshaped consumer behaviour. Lower feedstock costs, particularly for benzene, further pressured Adipic Acid prices, while logistical challenges such as port congestion in Hamburg caused disruptions, although global container demand eased these pressures. Seasonal destocking during the year-end and cautious inventory management by buyers added to the bearish sentiment. By the end of Q4, the Adipic Acid FD Hamburg price stood at USD 1325/MT, marking a consistent downward trend throughout the quarter. Buyers capitalized on discounted offers to build inventory, but near-term recovery is unlikely amid economic uncertainties, rising operational costs, and stricter regulatory measures, such as the EU’s expanded Emissions Trading System set for early 2025.
South America
The South American Adipic Acid market experienced a modest 1% decline in Q4 2024 compared to Q3, reflecting subdued demand and logistical challenges early in the quarter. In Brazil, the market began with weakened activity in key downstream sectors, such as automotive and textiles. Severe weather disruptions caused by Hurricane Helene and the ongoing ILA port worker strike at U.S. East Coast and Gulf ports significantly impacted logistics, delaying imports of U.S.-sourced Adipic Acid, and increasing supply chain uncertainty. By mid-quarter, Adipic Acid prices further declined, influenced by declining export demand, particularly from Europe, where automotive and textile markets remained weak. Stable feedstock benzene prices and reduced freight costs applied additional downward pressure on pricing. However, minor logistical improvements and gradual recovery in the Brazilian automotive sector provided some support to the market. However, toward the end of the quarter, prices showed a slight recovery driven by festive season demand in the textile industry and year-on-year growth in the automotive sector. The quarter-ending price for Adipic Acid in Brazil stood at USD 2467/MT.
For the Quarter Ending September 2024
North America
Throughout Q3 2024, the Adipic Acid pricing landscape in North America experienced a notable decline, driven by several key factors. Weak demand from downstream sectors, particularly in the textile and automotive industries, significantly impacted pricing. Additionally, reduced orders from overseas markets due to high freight rates further contributed to this downward trend. The market faced limited inquiries and stagnation in trading dynamics, which led to a decrease in Adipic Acid prices.
In the USA specifically, the pricing environment mirrored the overall negative sentiment observed across the region. There was a recorded 1% decline from the previous quarter, highlighting a sustained downward trajectory. This environment was characterized by a consistent negative pricing trend, with prices continuing to drop between the first and second halves of the quarter.
The quarter showcased a consistent negative pricing environment, with an -0.9% change between the first and second half of the quarter. By the end of the period, the price for Adipic Acid (Technical grade), DEL Houston in the USA stood at USD/MT. This figure emphasizes the prevailing negative pricing trend in the market, reflecting increased pessimism about future labour market conditions and diminishing optimism regarding business prospects and income expectations.
Europe
In Q3 2024, the Europe region experienced a notable decline in Adipic Acid prices, continuing a downward trend from the previous quarter with an 18% drop. The Netherlands reported significant price fluctuations, reflecting broader market sentiments. Several factors contributed to this decline, particularly weakened demand from downstream sectors such as automotive and textiles. This shift resulted in low new orders and reduced consumption of Adipic Acid. The automotive industry is grappling with considerable challenges, including a third consecutive month of falling new vehicle registrations and heightened competition from Chinese electric vehicle manufacturers. Additionally, improved supplier delivery times have alleviated some pricing pressures, while ongoing competition among suppliers has further contributed to the downward pricing trajectory. During Q3 2024, adipic acid prices in the region dropped sharply by 18% from the previous quarter. As a result, the market exhibited a consistent negative pricing environment throughout the quarter. The quarter showcased a consistent negative pricing environment, with an -20% change between the first and second half of the quarter. By the end of the period, the price of Adipic Acid Technical grade CFR Rotterdam in the Netherlands reached USD 1340/MT. This decline underscores the challenging market conditions and the significant impact of subdued demand on Adipic Acid prices across the region.
APAC
Throughout Q3 2024, the Adipic Acid market in the APAC region experienced a period of declining prices, influenced by several significant factors. Weak demand from downstream industries, particularly the textile and automotive sectors, played a crucial role in driving prices down. Oversupply from manufacturing plants, coupled with a decrease in the price of the raw material, pure benzene, further contributed to the downward trend. The market remained sluggish, with fabric mills rumoured to be reducing their operating rates, because as the textile industry is shifting away from synthetic fibres amid rising environmental concerns, further adding to the overall negative sentiment. In Japan, the market saw the most significant price changes during the quarter. With a recorded -4% change from the previous quarter in 2024, the trend was clearly on a downward trajectory. The price comparison between the first and second half of the quarter showed a decline of -3.6 %. As of the end of the quarter a quarter-ending price of USD 1385/MT of Adipic Acid CFR Nagoya. The overall trend in Japan reflected the broader regional sentiment of decreasing prices, indicating a challenging pricing environment for Adipic Acid.
South America
In Q3 2024, the South American region experienced a downturn in Adipic Acid pricing, with significant factors contributing to the market's decreasing trend. Weak demand from downstream sectors, such as textiles and automotive industries, played a pivotal role in driving prices down. Reduced orders, both domestically and internationally, coupled with high freight rates, further dampened market dynamics. Additionally, geopolitical factors and reduced export orders added to the overall decline in demand, leading to a stagnation in product trading activities. Moreover, the market also felt the impact of the hurricane season, which brought severe weather disruptions to the region, affecting logistics and trade activities. During Q3 2024, Adipic Acid prices in the region dropped by 1% from the previous quarter. Overall trends in the market indicated a negative sentiment, with a correlation between decreased demand and pricing. The price comparison between the first and second half of the quarter showed a further decline of -1%, culminating in a quarter-ending price of USD 2465/MT of Adipic Acid FOB Sao Paulo in Brazil.
For the Quarter Ending June 2024
North America
In Q2 2024, the pricing of Adipic Acid in North America remained stable, reflecting a balanced market environment characterized by consistent supply and subdued demand. This stability was influenced by several significant factors. Firstly, the overall market had ample supply levels, leading to a lack of urgency in purchasing and thereby maintaining price equilibrium. Additionally, weak demand from downstream sectors, such as textiles and electronics, further contributed to the stable pricing dynamics. The market sentiment was cautious, with manufacturers adopting a prudent approach to inventory management in response to uncertain market conditions.
In the USA specifically, the market experienced the most price changes within North America. Despite a 13% increase from the same quarter last year, the quarter-on-quarter change in Q2 2024 was recorded at 4%, indicating a slight upward trend.
However, the price remained consistent between the first and second half of the quarter, showing no significant fluctuations. Ultimately, the quarter-ending price for Adipic Acid LAB Grade FOB New Jersey in the USA stood at USD 2628/MT, highlighting the stability that characterized the pricing environment throughout the quarter.
APAC
The second quarter of 2024 for Adipic Acid in the APAC region has been marked by stable prices, reflecting a balanced market environment owing to balanced gap between the demand and supply. Several factors have influenced these stable prices, including weak demand from downstream sectors, oversupply situations, and cautious procurement activities among merchants. The market has seen a consistent trend of low demand, particularly from the textile and automotive industries, leading to a lack of significant price fluctuations. In Japan, which has experienced the most price changes, the overall trend has been one of stability. The -3% decrease from the same quarter last year indicates a slight decline in market conditions, while the 3% increase from the previous quarter in 2024 suggests a modest improvement. Despite these fluctuations, the price remained unchanged between the first and second half of the quarter. The quarter-ending price of USD 1475/MT of Adipic Acid CFR Nagoya in Japan signifies a continuation of the stable pricing environment observed throughout the quarter.
Europe
The second quarter of 2024 for Adipic Acid in the Europe region saw a persistent decline in prices, influenced by various factors. Weak demand stemming from uncertainties like ongoing geopolitical tensions and high-interest rates has led to a cautious approach among consumers and businesses, impacting overall market dynamics. The inventory of product at port was recorded high during this quarter. Germany, in particular, experienced the most significant price changes, with a 13% decrease compared to the same quarter last year. In Q2 2024, prices decreased by 4% from the previous quarter, reflecting the ongoing downward trend. Notably, there was a substantial 7% decrease in prices between the first and second half of the quarter, indicating a sharper decline in the latter part. The quarter ended with Adipic Acid LAB Grade FOB Hamburg in Germany priced at USD 3156/MT, showcasing the continued negative sentiment in the pricing environment. The quarter has been characterized by a challenging pricing landscape, with prices consistently on a downward trajectory.
South America
In Q2 2024, the pricing trend for Adipic Acid in South America experienced a notable decrease, with Brazil particularly witnessing significant price changes. This decline can be attributed to various factors such as weak demand from downstream sectors, including textiles and electronics, both domestically and globally. Additionally, high freight rates and limited inquiries further dampened market demand, leading to a downward price trend. In Brazil specifically, pricing fluctuations were most pronounced, reflecting an overall negative sentiment. The quarter saw a 4% decrease from the previous quarter, indicating a consistent downward trajectory. Comparing to the same quarter last year, prices recorded a substantial 15% decrease, highlighting the challenging market conditions faced by Adipic Acid suppliers. Overall, the quarter displayed a clear correlation between weakening demand, high freight costs, and reduced orders, resulting in a stable to negative pricing environment. The quarter-ending price of USD 2492/MT of Adipic Acid FOB Sao Paulo in Brazil encapsulates the prevailing downward pricing trend observed throughout Q2 2024.
For the Quarter Ending March 2024
North America
During the first quarter of 2024, the North American Adipic Acid market saw a modest improvement amidst a series of challenges affecting demand and supply dynamics. By the end of the quarter, Adipic Acid LAB Grade settled at USD 2527/MT on a FOB Texas basis.
At the quarter's outset, the domestic Adipic Acid market remained subdued, with many companies citing weak client demand. This was attributed to reduced purchasing power among customers and heightened global economic uncertainty. Externally, demand conditions also weakened, with new export orders contracting, albeit at a fractional pace.
However, by the second and final month of the quarter, new orders began to pick up in the region. In February, US new vehicle sales surged by 16.4% to 1,259,770 units compared to the previous month. This uptick in new orders resulted in a quicker rate of job creation and increased input buying as companies sought to bolster their inventories. Overall, the improved operating conditions were a response to heightened demand for the product.
APAC
The Adipic Acid market in the Asia Pacific region during Q1 of 2024 experienced a stable market situation with moderate supply. The market faced challenges due to weak demand from industries such as automotive, textiles, and electronics manufacturing. This resulted in prolonged delivery times and reduced demand, particularly among industries that utilize Polyamide 66. However, there was sufficient availability of the product in the market, leading to a decrease in its cost.
South Korea, in particular, witnessed a decline in demand from the downstream automotive industry, which further decreased the cost of Adipic Acid. The latest quarter-ending price of Adipic Acid FOB Busan in South Korea was USD 1240/MT.
In addition to the reduced demand, there were multiple shutdowns in the Adipic Acid industry during this period. One notable example is Tangshan Zhonghao Chemical Co., Ltd. in Hebei Province, China. The plant experienced a technical issue, resulting in reduced operational rates and uncertainty regarding the resumption of normal production. This disruption further impacted the supply and prices of Adipic Acid in the market.
Overall, the combination of reduced demand from downstream industries and disruptions in production contributed to an increase in prices in the Adipic Acid market in the Asia Pacific region during Q1 of 2024.
Europe
During the first quarter of 2024, Adipic Acid remained in a mixed price pattern in the European market. For the first two months, the market for Adipic Acid remained stable. The consumption patterns and, in turn, the pricing trends of Adipic Acid in the German market can be influenced by several factors, including the state of the economy, industrial activity, and globally market dynamics. A bearish market environment has been brought about by the weak demand in these important industries, which has also put downward pressure on the product. In March, giant manufacturer LANXESS raised its price at the end of February due to the influence of raw material prices. Further, the raw material Benzene prices rose by 15% in February which impacted the production cost of the product. The automotive sector's improvement likely led to higher demand for Adipic Acid, further supporting the price increase. The ongoing supply disruptions in ocean routes are having a significant impact on the availability of feedstock materials, which in turn is affecting prices in the downstream derivative markets. The latest price of Adipic Acid FOB Hamburg in Germany for Q1 2024 was USD 3,250/MT, reflecting the gradual price increase observed throughout the quarter.
