The production capacity of adipic acid continues to expand

In 2020, the domestic export volume of adipic acid reached 293,000 tons, a decrease of 18,000 tons from 311,000 tons in 2019. Let us take a look at each aspect in detail.

1. Decreased export dependence

China is the world's largest producer of adipic acid. In recent years, exports accounted for 2-3% of China's adipic acid output. The high point of exports in 2018 was around 360,000 tons, and the export dependency was about 27%. In 2019, exports fell to 310,000 tons. Although production capacity and output are still increasing this year, exports have decreased due to the impact of the new crown epidemic. To about 293,000 tons, the export dependence rate has dropped to about 19%.

2. Comparison of monthly export volume

According to customs statistics, my country’s export volume of adipic acid in 2020 will be 293,000 tons (excluding adipates and esters), compared with 310,000 tons in 2019, a decrease of 5.48%. The high point of export appeared in the first quarter, about 101,000 tons. Mainly due to the outbreak of the domestic epidemic at the end of January and early February, most of the domestic downstream enterprises were in a semi-stasis state, and demand was greatly reduced; while factories started high around the Spring Festival, and inventory was overstocked. Manufacturers digested inventory and actively exported.

3. Comparison of export volume of leading manufacturers

 Chongqing Huafeng is the largest adipic acid production plant in my country, and its export volume has also ranked first in recent years. The export volume in 2020 is 105,000 tons, accounting for more than 30% of the total export volume. Shenma's export volume decreased to 59,400 tons due to increased domestic demand in the second half of the year. The Haili Dafeng plant has been shut down for a long time, and the export shrinkage is obvious. The exports of Hualu and Zhonghao were good, with 42,000 tons + 24,000 tons, respectively, an increase from 2019. On the other hand, traders also performed "bright", with export volume of about 23,000 tons, an increase of about 7,000 tons from 2019.

　　4. Main exporting countries or regions

The most direct manifestation of China as a major exporter of adipic acid is that there are more exporting countries or regions. In 2020, the total number of exporting countries and regions will reach more than 40. The top ten exporting countries are Singapore, Turkey, Taiwan, South Korea, India, The total export volume of Israel, Italy, Pakistan, the Netherlands, and Japan is about 240,000 tons, which is 20,000 tons less than the 260,000 tons in 2019. Among them, the first exporting country is still Singapore, and its export volume of 47,000 tons decreased by about 5,500 tons compared with 2019; Taiwan of China jumped to second place with an export volume of 42,000 tons, with little change from 2019. Among the remaining exporting countries or regions, Turkey and Israel have seen significant shrinkage. In 2020, exports were 27,000 tons and 12,000 tons, and in 2019 they were 40,000 tons and 22,000 tons. The main reason is the impact of the epidemic and the impact of freight.

At present, the production capacity of adipic acid continues to expand, and the export market has become a battleground for the main factories, especially Huafeng and Shenma with the expansion of production, the export volume is also increasing. At the same time, the second phase of Hualu will be put into production in 2021. In addition to the expectation that the old export company Haili Dafeng will restart its equipment, Shandong Hongda is also preparing to restart. At that time, the export dispute will become more intense and the export volume may increase. But what cannot be ignored is that the global new crown epidemic is still spreading, and we still need to pay attention to the impact on the world economy and major exporting countries.