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.
For the Quarter Ending December 2023
North America
Despite reduced buying activities and moderate demand, the North American Adipic Acid market experienced a slight improvement throughout Q4 of 2023. One of the primary reasons for this was the impact of high interest rates, which made buyers more cautious, leading to reduced purchasing activities.
The market had moderate supply levels, with traders maintaining steady inventory levels and offering the product at affordable prices in the domestic market. The weak performance of the raw material Benzene throughout the fourth quarter also contributed to pricing stability, with cost burdens rising at a slower pace.
Manufacturers highlighted that the elevated prices of oil and oil-derived materials had contributed to higher operating expenses. However, the lacklustre demand for the product can be primarily attributed to the abundant supply prevalent in the market, and the absence of any significant plant shutdowns during this period. The latest price of Adipic Acid LAB Grade FOB New Jersey in the USA for fourth quarter ending was USD 2490/MT.
APAC
The Q4 of 2023 was stable to decline trend for the Adipic Acid market in the APAC region. The market was primarily influenced by the low-cost pressure stemming from the raw material Benzene in the Chinese market, abundant supply, and lacklustre demand.
South Korea witnessed the most significant changes in the Adipic Acid prices during the quarter. The trend in the market was stable, and the supply was moderate, while the demand was low. The price of Adipic Acid FOB Busan in South Korea depreciated by 1% from the previous quarter. The year-on-year percentage change in the price was -9%, and the price percentage comparison of the first and second half of the quarter was -6%. The potential decrease in demand for the product from both the domestic market and year-end offer sales may lead to the destocking of materials.
The intricate dynamics of economic factors, local demand, and international pricing trends collectively shaped the evolving landscape of the Adipic Acid market in the region during this timeframe. The latest quarter ending price of Adipic Acid FOB Busan in South Korea for the current quarter is USD 1391/MT.
Europe
The Adipic Acid market in Europe witnessed a stable quarter in Q4 2023, with moderate supply and low demand being the primary market drivers. The lacklustre demand can be attributed to the abundant supply prevalent in the market, leading downstream industries to adopt a cautious procurement approach, only making purchases on a need basis.
In the Netherlands, the market saw the most significant changes in price, with a trend of moderate fluctuations and a seasonality that remained stable. The correlation between price and demand was weak, indicating that other factors influenced the market more heavily. There was a 14% decrease in prices compared to the same quarter of the previous year, while there was an 6.5% increase in prices compared to the previous quarter of 2023.
The price comparison between the first and second half of the quarter sharp decline, with a depreciation of 12%. The latest price of Adipic Acid DDP Rotterdam in the Netherlands for the current quarter is USD 3424/MT.
For the Quarter Ending September 2023
North America
The pricing dynamics of Adipic Acid remained sluggish throughout July, with slight improvements in the subsequent months. This shift was partly influenced by the rising prices of the upstream raw material, benzene, in the U.S. market during the third quarter of 2023. The textile and apparel sector, which is a downstream industry for Adipic Acid, witnessed a declining trend in demand throughout the quarter. This decline was primarily attributed to the increased interest rates and inflationary pressures affecting the U.S. region. Companies operating in this sector noted that the drop in new sales was a consequence of customer hesitation and reduced spending motivation, which were exacerbated by challenging demand conditions. Manufacturers in the downstream sales contracted further reduced their procurement of input materials and scaled-down both pre- and post-production inventories. These reductions were substantial as firms aimed to streamline their stock levels and implement cost-cutting measures amid subdued domestic and international demand. The weak demand for input materials also impacted supplier delivery times, resulting in further reductions as vendor performance steadily improved throughout the third quarter. Towards the end of the quarter, there was a significant exponential increase in upstream crude oil and benzene prices. These price hikes had repercussions across various downstream derivative industries in the market.
APAC
Throughout the third quarter of 2023, the price trend for Adipic Acid in Asian markets exhibited a declining pattern compared to the previous quarter. This decline was mainly attributed to the sluggish performance of the downstream textile industry during the same period. The textile industry faced challenges primarily stemming from reduced export orders from overseas markets, largely influenced by rising interest rates that dampened the demand for Adipic Acid. South Korea experienced the sharpest decline in export orders, contributing to a broader global manufacturing export downturn. Additionally, in the later months of the quarter, the prices of the raw material benzene increased due to rising crude oil prices in the global market, driven by production cuts implemented by OPEC+ countries during the third quarter.
The Adipic Acid market followed a similar price pattern in Thailand as it imported from other Asian markets to meet domestic demands. Despite an increase in Adipic Acid price during the third quarter of 2023, demand remained subdued due to low overseas orders. During this period, some Adipic Acid plants in the Asian region were temporarily closed for planned maintenance, which had a limited impact on market dynamics. Furthermore, the overall demand from the downstream textile industry in the Asian market continued to be weak, resulting in an accumulation of Adipic Acid stocks in regional markets across Asia.
Europe
In the European market, there was a slight improvement in the price of Adipic Acid compared to the previous quarter. This improvement was driven by heightened cost pressures from increased benzene and crude oil prices. Despite this uptick in Adipic Acid prices, companies reported that the widespread global economic downturn was negatively affecting demand across various geographical regions. The Radici Novara Plant in Italy underwent a maintenance shutdown, resulting in reduced production capacity from August 4th to August 28th, 2023. This maintenance activity likely influenced the supply dynamics in the European Adipic Acid market. The price of benzene, a crucial component in Adipic Acid production, experienced a significant surge of over 8%, which had a notable impact on downstream derivative industries, including the Adipic Acid market. Additionally, the downstream textile industry in the Eurozone region faced a bearish trend, and this can be partly attributed to the influence of higher interest rates. The combination of these factors contributed to the overall pricing and demand dynamics in the European Adipic Acid market.
South America
Throughout the third quarter of 2023, the pricing trend for Adipic Acid remained weak, primarily due to sluggish demand from both domestic and overseas markets. In comparison to the previous quarter, there was no improvement in the pricing pattern, and prices actually declined in the Brazilian market. Purchasing behaviors related to Adipic Acid witnessed fluctuations, with companies adopting a cautious approach and limiting their purchases to immediate needs. This cautious attitude of observation prevailed within the Brazilian market, with businesses adopting a wait-and-see strategy. It's worth noting that the raw material benzene saw a price increase during August, driven by the ongoing strengthening of crude oil prices, which continued to build upon the gains observed in the previous month. Despite these dynamic factors, the downstream textile industry in Brazil remained stagnant, indicating subdued demand for Adipic Acid in the country. The overall economic conditions and market dynamics contributed to the weak pricing trend for Adipic Acid during this quarter.
For the Quarter Ending June 2023
North America
Throughout the second quarter of 2023, the cost of Adipic Acid remained deteriorated in the US market due to the poor performance from the downstream textile industry. Due to weak performance from the downstream sector brought on by rising interest rates and an unsteady global economy, the overall adipic acid market shrank globally. Market participants claim that the international market is in a wait-and-see stance. However, the increase in new sales was very marginal as manufacturers continued to observe that clients were reluctant to place orders due to increasing dullness and the uncertain global economy. The merchants continued to work through their existing stocks in the domestic market. The demand for the product did not rise due to the sufficient availability to meet the requirements of the downstream textile industry. The raw material benzene market decreased as a result of poor crude oil prices, which ultimately supports the downstream Adipic Acid and other petrochemical markets. Manufacturers recorded the fastest rate of contraction in new orders since December 2022, with weak demand linked to muted customer confidence. Some firms also noted that sufficient stock levels at clients had led to lower new orders. Similarly, overseas client demand remained subdued. Although easing from that seen in May, the pace of contraction in new export orders was steep overall.
APAC
In the second quarter of 2023, the cost of Adipic Acid witnessed a declining trend in the Asian market due to the low procurement activities from the downstream textile industry. Adipic Acid market supply was largely consistent, and the ratio of supply to demand was fairly balanced in the Korean market. As a result of the inadequate performance of the downstream demand, procurement became more circumspect and maintained a wait-and-see stance. Further, the feedstock Benzene remained in a softer mode in the Asian market due to the decline of crude values. The downstream textile industry's performance was poor in the global market, and the demand for Adipic Acid remained subdues in the Korean market. In India, the downstream textile and apparel market's decline in exports is primarily attributed to sluggish demand in major importing countries such as the United States, Germany, and the United Kingdom, influenced by inflation and inventory accumulation. Due to these low trading activities, the demand for the product remained subdues in the market. Overall, the demand for Adipic Acid in the Asian market remained sluggish in the second quarter of 2023.
Europe
Despite the low demand in the eurozone, the Dutch market was affected by high-interest rates, inflation, and tight financial conditions, which impacted the price trend of the Adipic market. Inflows of new orders fell, and future output expectations also deteriorated in the Dutch market. The demand for Adipic Acid remained subdues due to the high-interest rates and general hesitancy among consumer sentiments. Reduced purchasing of inputs by manufacturers took the pressure off supply chains, which in turn led to faster supplier delivery times, which have improved in recent months. With consumers showing a more negative sentiment in June compared to May, the overall confidence appears to be in decline. At the conclusion of the second quarter, the German economy lost a significant amount of momentum as a result of weakening demand conditions and a corresponding slowdown in the expansion of economic activity. In the manufacturing sector, where order books for Adipic Acid amid signs of customer hesitation and destocking remained the key area of weakness.
For the Quarter Ending March 2023
North America
During the first quarter of 2023, the market for Adipic Acid witnessed a declining trend in the US market due to the weak demand from the downstream industries. The downstream Polyamide 66 industry also observed a steady price trend in the domestic US market. Additionally, a negative price trend brought about by an increase in natural gas production and a decrease in demand in the United States supports the petrochemical commodities. Regardless, unexpectedly, business activity in the United States rose to its highest level in eight months in February 2023. New export orders contracted for the tenth successive month at the end of the first quarter, as overseas demand conditions remained historically subdued.
APAC
During the first quarter of 2023, the market for Adipic Acid witnessed an inclining trend in the Asian market due to the moderate demand from the downstream industries. In China, the upstream Benzene prices soared throughout this quarter, which led to the downstream commodities, including the Adipic Acid market. In the last month of the first quarter, the demand for the product was reduced across the globe due to a stagnant overseas economy. On the other hand, in India, cheap imports from the overseas market during March 2023 that had lower prices pushed the product's cost in a downward direction. Consistent vendor performance appeared to indicate that supplier capacity was sufficient to fulfill the downstream demand.
Europe
During the first quarter of 2023, the market for Adipic Acid witnessed a declining trend in the European market due to the product's widespread availability in the market. German exports are being negatively impacted by the weak global economy, but rising inflation rates were also having a negative impact on consumer spending and textile activity due to diminishing purchasing power and dramatically higher financing costs. ECB has raised interest in controlling the inflation rate and willingness to provide banks with liquidity in the face of recent banking sector turmoil. When interest rates rise, demand usually falls, and this can cause the global textile industry to suffer.
For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, the price of Adipic Acid rose during the first two months before it fell in the US market. During the first half of the quarter, with the high orders from the buyers, the manufacturers raised the cost of the product. Despite the feedstock prices decreasing, the cost of Adipic Acid inclined due to the limited availability and continuous orders from the downstream industries. The petrochemical product prices moved north as a result of high-interest rates and high inflation in the US. The approaching holiday decreased demand from the end-use industries in the textile and, electrical & electronics sectors. In addition, in the face of inflation, domestic consumers tended to wait and buy.
APAC
During the fourth quarter of 2022, the price of Adipic Acid decreased in Asia. The interest from the downstream business was a low and bountiful stockpile of the product in the field, declining the price of Adipic Acid. Additionally, the price of upstream Benzene and feedstock Cyclohexanone decreased in Asia, supporting the costs of the downstream industries. The downstream PA66 industry remained sluggish, and the market moved down. Additionally, the inventory of Adipic Acid in the regional market was high, and some Chinese plants' operating rate of PA66 textile filament manufacturing facilities decreased. Some Adipic Acid plants were shut down for maintenance in China during Q4. At the same time, in India, the consistent stockpile from traders and surplus availability declined the expense of the product. The market saw fewer orders from end-use industries as the year drew near.
Europe
During the first two months of the fourth quarter of 2022, the price of Adipic Acid in Europe increased, but the trend picked up a downward trajectory in the final month. The supply chain was disrupted due to the region's port congestion and cargo bunching. In addition, energy prices were high in the European market due to the high operational cost of producing the product. In December, the demand from the downstream industry was weak, and the consumers were reluctant to buy the product due to imminent recession and inflation in the region. As a result of low demand, the manufacturers reduced the production rate of Adipic Acid. Further, the upstream Benzene prices dropped and supported the downstream derivative industries in the Eurozone.
For the Quarter Ending September 2022
North America
The Adipic Acid prices showed an inclined trend in the North American region throughout the third Quarter of 2022. North America is one of the major supply hubs for engineering polymers, making it a potential destination for Adipic Acid. The high consumption from the end-use industries such as Nylon 66 and Polyurethane and demand from importing countries like Canada contribute to this price hike in the region. The supply chain was disrupted in the area, and delays in goods delivery to their destination due to port congestion during the third Quarter were observed. As a ripple effect, the cost of Adipic Acid hovered around USD 3233/MT on a FOB New Jersey basis during the quarter ending.
Asia Pacific
In the Asia Pacific region, Adipic Acid fell during the third Quarter of 2022, and the feedstock Cyclohexanone saw a downward trajectory in the market. The imported cargos price has declined in the Indian market. The low demand from the downstream Polyamide derivatives has constrained the price of Adipic Acid. Regarding inventory levels, the port's inventory position was acceptable, and the volume of overseas goods arriving was average in the Asian market. The upstream Benzene prices dropped due to poor buying sentiments and supported the downstream chemical derivatives in the Asian market. Some plants were shut down in the final month of the third Quarter of 2022, at the beginning of September, due to natural disasters that struck China, Japan, and South Korea. The cost of Adipic Acid hovered around USD 1474/MT on a FOB Qingdao basis during the Quarter ending September.
Europe
In the Third Quarter of 2022, the market sentiments for Adipic Acid in the European region showed a southern direction due to low consumption from the downstream industries. Despite a lack of supply from manufacturers due to port congestion in the region, the market had a sufficient supply of products, which limited price movement. Italy-based Radici company declared force majeure on mid of September for Adipic Acid and Polyamide due to the high price of natural gas and raw materials. The average price of Adipic Acid settled around USD 3733/MT on a FOB Hamburg basis, with a quarterly decline of 4% during the end of the third Quarter.
For the Quarter Ending June 2022
North America
In the second quarter of 2022, Adipic Acid prices surged in the North American region with an escalation of 14.3%, especially in the US market. Fluctuating Benzene prices due to the variations in the global petrochemicals market caused by the ongoing war between Russia and Ukraine supported the market. The surging demand from downstream Nylon-6,6 and other textiles markets put cost pressure on the product's prices, which led to a shortage of inventories and fewer products to be stockpiled with the traders and the suppliers. The war also caused a lack of shipments globally which affected the downstream market sentiments.
Asia
In May, the prices of Adipic Acid fell in the Asian market during Q2, 2022, with costs ranging from INR 171725/ton Adipic Acid Ex-Depot Ahmedabad in India with a quarterly decline of 5.9% as per recorded by the ChemAnalyst pricing team. China, a significant exporter of Adipic Acid, saw a decrease in demand from the importing Asian countries. The market quotations were observed lower, and prices of pure Benzene fell, further weakening the Adipic Acid support. The downstream demand for Nylon-6,6 fell, affecting the market sentiments, thus increasing the inventories within the region with the traders. As the market entered the off-season, sales slowed significantly, forcing companies to cut prices and run out of stock. From a trader's point of view, traders had an ample supply when the market was high in the first quarter. Markets fell in April and May, forcing holders to reduce inventories and companies to lower prices to sell their goods.
Europe
The European market saw a rise in the prices of Adipic Acid during the second quarter of 2022, with costs hovering at USD 3709/ton Adipic Acid FOB Hamburg with a quarterly escalation of 3.7% as compared to the previous quarter. Escalation in demand for the product from the importing countries like Italy, Spain, and the Netherlands supported the upward escalation. Upstream feedstock Cyclohexanone and Benzene prices rose due to the Russian invasion of Ukraine, which led to a shortage of products with the traders. Variations in the freight charges globally were also one of the main reasons for the price surge.
For the Quarter Ending March 2022
North America
The prices of Adipic acid witnessed fluctuations during the 1st quarter of 2022 across the North America region on the back of the stabilized demand from the downstream polyamide and its end-user industries. The prices of Cyclohexanone and Cyclohexane (feedstocks) increased towards the end of the period as consumers started to secure the material, which influenced the Adipic Acid prices in the region. Furthermore, volatile Crude oil prices boosted the inflationary costs of derivatives at the quarter end, which impacted the values of Adipic acid in H2 of Q1. In the domestic market, after witnessing a decrement of 13% in the last quarter, the FOB prices were accessed at USD2145/tonne on month ending March 2022.
Asia Pacific
In China, the prices rose rapidly in the initial month of Q1 as prices of feedstocks were high and demand from the importing countries and polyamide industry remained elevated. However, the price trend was firm in February and March because of stable demand and increased supply in the domestic market. The prices of Adipic acid after increasing by 9% from the last quarter of 2021, got settled at USD2190/tonne in the month ending March. Similarly, in the Indian market, the prices rose continuously, especially in January, because of limited supply from China due to port congestion, which however, later got stabilized in February. In March, robust demand from the downstream textile industry and disruption in the supply chain from China impacted the prices, which were recorded at USD2414.65/tonne on CFR basis in India.
Europe
In the European region, Adipic Acid prices rose during the first half of Q1, which later got firm after the second week of February. The rise in the prices of Crude oil towards the end of Q1 led to the inflationary pressure on the downstream derivatives of Adipic Acid. As the energy costs was also running high in winter months, it also influenced the production cost of Adipic acid and its derivatives in the downstream industries. The continuous rise in the freight charges and less supply of feedstock impacted the production rate in the country. After observing an increment of 17% in the last quarter of 2021, the values were assessed at USD3672/tonne by the end of Q1 2022.
For the Quarter Ending December 2021
North America
Stagnancy in feedstock benzene prices and change in market sentiment have pressured manufacturers to maintain minimum fluctuations in overall prices of Adipic Acid. Demand stabilization from downstream polyamide in lieu of ongoing holiday season has further deterred the market sentiment. Imports from South Asia have dropped significantly vindicating the change in market outlook. December Adipic Acid prices were stable at USD 2635 per MT FOB New Jersey in USA. North American region observed winter holidays which resulted in demand stagnation and at times demand deterioration impacting the overall market outlook during the quarter.
APAC
In China, Adipic acid market started the quarter on strong note where influx of demand and rising cost of feedstocks resulted in robust pricing for the available material. Increasing trend continued for the major part H2 of Q4, however demand declined towards the end of the year which culminated in sudden drop in prices of Adipic Acid. FOB Qingdao price of Adipic Acid dipped in December to USD 1856 per MT. China also struggled with production as dual control policy constrained operating rates.
Europe
European market sentiment maintained bullish outlook throughout the quarter owing to consistent demand and declining supply dynamics. Supply of several petrochemicals including Adipic acid struggled throughout the quarter as falling Rhine water levels hampered barge traffic and load capacity of vessels. Market participants were forced to keep an upward pressure on the prices in the wake consistency in demand and snug supply. Adipic Acid prices increased in December to USD 3279 per MT on FOB basis.
For the Quarter Ending September 2021
North America
Adipic prices in the North American region showed a sharp decline in Q3 2021 due to better market supplies as production levels improved over Q2 2021. Downstream PA 66 prices showed a much-needed fall between July-September thereby narrowing spread between Polyamide 66 and the feedstock Adipic Acid. Production cost of the key US Adipic acid producers came down during the quarter under supportive prices of Adipic Acid and hence margins improved. However, the decline in prices seemed to be short-lived as rapid escalation of freight rates and disruption in production levels due to hurricane ’Ida’ triggered regional tightness and rebounded Adipic Acid offers.
Asia Pacific
The volumes of Adipic Acid and its salts imports in China grew by more than 50% y-o-y in July, with Germany as its key exporter. While the volume of Adipic Acid exports out of China also rose by double-digits during the same period. In August, the market price of Adipic Acid showed a considerable fall across Asia due to ample supplies. However, the percent decrement in the offers was limited under raw material Benzene uncertainty which continued to trade above $950/mt throughout the quarter. FOB Qingdao (China) Adipic Acid price was assessed around $1655/mt towards the end of August and slipped to $1620/MT levels in early September. Surges in raw material and improved downstream demand from PA66 manufacturers with the arrival of peak demand season towards the end of Q3 kept the market sentiments high. Cheaper Chinese imports compelled Indian manufacturers to keep their prices lower this quarter.
Europe
The European Adipic Acid supplies continued to stay tight due to healthy demand prospects from downstream Polyamide producers. Raw material supplies stayed under pressure due to dented supply chains and port-congestion issues. As per market players, downstream demand from the automotive industry remained under pressure due to shortage of semiconductor chips. Towards the end of September, DOMO Chemicals, a leading European producer announced to increase price for its Adipic Acid by $164/mt w.e.f. October, taking into account strong escalation in the prices of natural gas and electricity costs.
For the Quarter Ending June 2021
North America
Adipic Acid demand in USA remained firm during Q2 2021, in effect of improving production activities following the economic recovery in the country. Prices of Adipic Acid rose initially during the month of April, due to the shortage of feedstock chemicals after the freezing fallout in the Gulf of USA. Later, prices started declining effectively in the second half of the quarter, as major plants resumed their production activities, which effectively improved the availability of the product across North America. Therefore, after attaining its peak value in April i.e., USD 1730/MT, its prices declined effectively and reached USD 1650/MT during the month of June.
Asia
Dull regional demand and abundant spot availability dragged the price curve of Adipic Acid in complete Asian market. China showcased sufficient availability and feeble demand from textile market, as the manufacturers were running on high capacity, since they were getting better netbacks from the international market. Thereby, prices of Adipic Acid hovered around USD 1514/MT for China during mid of June 2021. Meanwhile, Turkey imported most of the Adipic Acid from China on an average price of USD 1524/MT during this timeframe. In addition, in the Indian market, prices of Adipic Acid declined effectively in effect of dull market sentiments due to the pandemic mayhem.
Europe
European Adipic Acid market showcased mixed sentiments during Q2 2021, as the demand improved in comparison to the prior quarter whereas supply activities remained sufficient to satisfy the overall need. Despite of successful vaccination drives and post pandemic recovery, textile sector struggled to attain normalcy, thus some textile majors urged government to provide aid to this sector. Therefore, the price of Adipic Acid remained stable to low range during this quarter in European region.
For the Quarter Ending March 2021
North America
The availability of Adipic Acid remained low during Q1 2021. Low inventory levels and supply shortage initiated during Q4 2020 when multiple hurricanes hit the region, which was followed by the winter storm Uri which led to freeze fallout and force majeures at several chemical and petrochemical facilities across the gulf coast region. While supply remained tight as a repercussion of storm related production halts, improved demand from the derivative Nylon 66 industries further raised regional Adipic Acid offers. Downstream polyamide and textile sector added to improved market prospects which supported rise in Adipic Acid prices across the region. FOB New Jersey price for Adipic Acid touched USD 1690 in the last week of Feb, showing a spike of nearly USD 150 per MT over the settlements in the final week of January.
Asia
The Asian Adipic Acid market showed improvement during Q1 2021. This rise was initiated with improvement in service sectors and ongoing winter season. Majority demand for Adipic Acid was coming from Nylon 66 manufacturers, to satisfy demand from the textile sector. Though the prices of Adipic Acid were souring throughout the quarter backed by tight container availability in Asian countries like India, shortage of Adipic Acid from the international suppliers pushed up the regional offers. CFR India price of Adipic Acid rose from USD 1345 per MT (January 2021) to USD 1782.84 per MT. Chinese lunar holidays further tightened the availability of Adipic Acid across the region and hence inventories of manufacturers in China were pressured.
Europe
Across the European region, cold weather conditions halted several plant activities and reduced the availability of Adipic Acid during Q1 2021. Evonik, a major producer of Adipic acid in Germany, declared force majeure on its plant in Marl, Germany. In addition, Radici Chimica, another major manufacturer also declared force majeure at its 80,000 MT/year Adipic Acid plant due to cold weather conditions across Germany. These major shutdowns disrupted the supply of Adipic Acid across the region, thereby raising regional prices by double digits over the previous quarter.
For the Quarter Ending December 2020
North America
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.
Asia
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.
Europe
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.
