Chinese CPL Market Entered the Downtrend on the Thin Supply and Demand

Market Review: The Chinese adipic acid market moved marginally this week. Sinopec cut down the posted prices of benzene by RMB 100/mt, which weighed on the adipic acid market to some degree. As for the supply, the units at Tangshan Zhonghao Chemical and PetroChina Liaoyang Petrochemical underwent maintenance, which declined the supply. The demand was weak, and downstream users purchased goods on a need-to basis. In East China, the average negotiation price for adipic acid was RMB 9,200/mt, up 0.32% week on week.   

Forecast: Units at Tangshan Zhonghao Chemical and PetroChina Liaoyang Petrochemical will continue to undergo maintenance. The overall supply will be largely stable. As for the demand, it will continue to be weak in H2 June. On the whole, the Chinese adipic acid market will continue to move sideways next week.