Costs Rise, Adipic Acid Prices Continue to Soar

March 10th News

According to monitoring data: Since March, the adipic acid market in China has been continuously rising, with prices breaking through the 10,000 yuan mark, increasing by over 27%. On March 1st, the average market price of adipic acid was 8,300 CNY/ton, and on March 10th, it reached 10,600 CNY/ton, a price increase of 27.71%.

Main Factors Affecting the Current Round of Adipic Acid Price Increase in China

Cost Side: Driven by geopolitical factors, international crude oil prices have continued to surge, directly boosting the prices of upstream raw materials—pure benzene and cyclohexanone. The sharp rise in raw material prices is supporting the upward trend in adipic acid prices.

Pure benzene: At the beginning of March, the main listed price of pure benzene in China was raised to 7,200 CNY/ton, and the average spot price in East China once rose to 7,270 CNY/ton. Meanwhile, several major factories continuously raised their listed prices at the beginning of March, gradually pushing the price from 9,000 CNY/ton to above 12,000 CNY/ton. Although on March 10, crude oil saw a correction, causing the pure benzene market to peak and then fall back, with prices returning to around 9,600 CNY/ton, the overall price was still more than 50% higher than at the beginning of the month.

Cyclohexanone, as another major raw material for adipic acid, is also driven by the crude oil market. In March, some cyclohexanone facilities in China entered maintenance periods, leading to a reduction in overall supply. Spot inventory levels are low, and manufacturers have a strong desire to maintain prices. From March 1-10, the price of cyclohexanone increased from 7,250 CNY/ton to 9,900 CNY/ton, a rise of over 36%.

Short-term sentiment: As adipic acid prices continue to hit new highs, market participants are generally adopting a cautious stance, and some manufacturers have even resorted to temporarily halting sales. In the morning session on March 10, raw material prices experienced a pullback, further intensifying the wait-and-see attitude among market players.

Demand: The procurement of terminal products (such as slurry, shoe sole raw materials, PBAT, etc.) is primarily driven by rigid demand. However, due to high costs, operations in some traditional demand sectors have generally resumed only at a moderate pace, with these industries largely adopting a wait-and-see approach toward higher-priced raw materials. As a result, the market is currently caught in a tug-of-war between cost pressures and demand dynamics.

Adipic acid analysts believe: In the short term, international crude oil prices will remain high, mainly due to the boost in raw material prices. Since adipic acid prices are already very high, terminal demand is cautious, and there is insufficient momentum for a significant rise in adipic acid prices; instead, a slight correction is expected.