The Chinese Adipic Acid Market Decreased Slightly in June

The Chinese adipic acid market was weak, although the decline growth slowed down. Since the market was still soft at present and main suppliers still suffered inventory pressure, the adipic acid price fell slightly from the last month.

Furthermore, the benzene market was soft. As the unsettled price of benzene in Sinopec Group increased first and then declined, the mentality of upstream market was hard to be better. The operating rate of main downstream market was around 20%-40%. Although the TPU market became better, the overall downstream demand was still weak. At the end of June, main producers’ settlement prices and posted prices in July were consistent with expectations. The sentiments of Adipic Acid market fluctuated and lacked confidence.

Up to June 30, the mainstream negotiation price in East China market was around RMB 7,700-7,900/mt. The negotiation price in Liao Yang Shihua was around RMB 7,800-7,900/mt in cash. The negotiation price in Shandong was around RMB 7,700-7,800/mt by acceptance.

The adipic acid market in July will enter the off-season. The demand from downstream will be tepid, such as the PU, shoe stock and TPU market. The TPU market will become better from May and June. However, as the operating rate in the whole market will be low, the raw material procurement will be flat. The purified petroleum benzine price will be in a downstream and the market will be in a stalemate in July. It is predicted that the adipic acid market will be be largely stable in July.