Price trend

In August, the domestic adipic acid market continued to decline. According to the Commodity Market Analysis System of SunSirs, as of August 31, the monthly decline in adipic acid was 3.68%, and the market trading center was still shifting downwards. As of the end of August, the market price range for adipic acid was between 8,350-9,700 RMB/ton, a decrease of about 400 RMB/ton from the beginning of the month. The main reason was the lack of cost support.

Analysis review

Cost side

According to the Commodity Market Analysis System of SunSirs, the price of pure benzene has slightly increased this month, with a growth rate of 2.07%. Compared to July 1st, it had fallen by 7.57%, experiencing the previous downward trend. This month, the pure benzene market began to rebound slightly. The price of cyclohexanone closed down, with a decrease of 2.31% this month. Overall, there were negative factors on the cost side.

Supply side:

From the perspective of market supply, in terms of equipment, the operating rate of adipic acid this month was around 61%, and maintenance units were starting to operate one after another this month. There was sufficient supply of goods on site, and some manufacturers were in a state of stockpiling. The middle and downstream were in a wait-and-see state and cautious in entering the market.

Adipic acid downstream was still showing weakness. The CPL and TPU industries were still performing poorly. Downstream factories were cautious in their procurement, with no improvement in orders, ensuring normal start-up needs. Taking CPL as an example, according to the monitoring of SunSirs, the rise and fall of CPL this month was 0.55%, and the market was hovering at the bottom. At the end of the month, the market price of CPL in Zhejiang region was around 12,500-14,100 RMB/ton. At present, the focus of transactions in the adipic acid market is weakening.

Market outlook

Analysts from SunSirs believe that in terms of cost, the overall trend of crude oil in August was mainly volatile. The geopolitical situation in the Middle East had affected the trend of the crude oil market, and the tense situation boosted confidence in the crude oil market. The pure benzene market was rising, and the cost aspect may experience a bullish shift from bearish to bullish in the later stage. It is expected that adipic acid will fluctuate and rise within the range in September.

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