March adipic acid prices see a significant increase in China

March 24th, news:

According to the commodity market analysis system: In March, the adipic acid market in China surged and then retreated, with an overall significant increase. On March 1st, the average market price of adipic acid was 8,300 CNY/ton, and on March 24th, the average market price of adipic acid was 10,433 CNY/ton, representing a price increase of 25.7%.

The main factors influencing the rise and fall of adipic acid prices in March

Cost support: In early March, due to the impact of geopolitical conflicts, the prices of the main raw materials for adipic acid, namely pure benzene and cyclohexanone, continued to rise. This led to an increase in costs, pushing up the price of adipic acid to around 11,000 CNY per ton, with a price increase of over 32%.

In late March, the prices of pure benzene and cyclohexanone gradually adjusted, with insufficient cost-driven momentum. The adipic acid market also saw a gradual minor adjustment, with prices remaining around 10,400 CNY per ton.

Supply side: Manufacturers continue to incur losses: Although prices are continuously rising, due to cost pressures, the industry as a whole is still on the brink of loss. The pressure of these losses forces factories to transfer costs by raising guidance prices and limiting the supply of low-priced goods in the market.

On the demand side: Weak pickup of goods and sluggish downstream demand are currently the biggest constraints on market conditions. Faced with rapidly rising raw material prices, downstream enterprises—such as those producing slurry, shoe sole resin, PA66, and others—are finding it difficult to pass on costs. As a result, their willingness to accept high-priced adipic acid is relatively low, and their purchasing intentions remain subdued. Demand is driven primarily by essential needs, leading to a lackluster trading atmosphere in the market.

The adipic acid analyst believes that the adipic acid market remained strong in March, primarily due to cost support and ongoing geopolitical tensions. As a result, the adipic acid market still has room for further price increases in April, with prices likely to rise easily but difficult to fall.