Adipic Acid Price Trend and Forecast

Adipic Acid Regional Price Overview

Get the latest insights on price movement and trend analysis of Adipic Acid in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Adipic Acid Price Trend for the Q4 of 2024

Asia

In the Asian market, particularly China, Adipic Acid prices demonstrated a downward trajectory throughout Q4’24. The market witnessed consistent pressure due to sluggish demand from downstream industries, especially textiles. While the automotive sector showed signs of recovery, supported by government incentives and improving consumer confidence, it wasn't enough to offset the overall bearish sentiment.
 

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The feedstock situation further complicated matters, as benzene and cyclohexanone markets experienced weakness, limiting cost-side support for Adipic Acid prices. Supply remained comfortable throughout the quarter, with manufacturers focusing on inventory clearance through competitive pricing strategies. Improved freight conditions within Asia helped maintain steady material flow, though rising intra-Asian freight rates toward the quarter's end added some cost pressure.

Europe

European Adipic Acid markets, led by Germany, faced persistent downward pressure during Q4’24. The region grappled with multiple challenges, including weak downstream demand and broader economic uncertainties. The automotive sector, traditionally a strong demand driver, struggled with high operational costs and increasing competition from Asian manufacturers.

The withdrawal of electric vehicle subsidies in key markets dampened sales despite growing production volumes. Manufacturing contraction, evidenced by declining new orders and reduced production rates, weighed heavily on market sentiment. The textile sector's performance remained subdued, affected by cautious consumer spending and weak retail activity. Logistics challenges, particularly port congestion at major terminals, created additional complications for market participants.

North America

The North American Adipic Acid market maintained relative stability compared to other regions, though prices gradually softened through Q4’24. The market was primarily influenced by moderate downstream demand and adequate supply levels. The automotive sector showed mixed performance, with electric vehicle production gains partially offsetting conventional vehicle segment weakness. The region's textile industry operated at reduced rates, reflecting seasonal patterns and cautious consumer spending.

Analyst Insight

According to Procurement Resource, continued regional divergence is anticipated in Adipic Acid prices. While Asian markets might find some support from automotive sector recovery, European prices could face additional pressure from upcoming environmental regulations. Global supply chain dynamics and feedstock price movements will remain crucial factors influencing market direction across regions.
 

Adipic Acid Price Trend for the Q3 of 2024

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Asia

In the Chinese market, the prices of adipic acid showed a declining trajectory. The market was experiencing slow trading as downstream factories were cautious in their procurement of raw materials. The upstream pure benzene prices were falling, which resulted in a receded cost support for adipic acid markets in the region. By the end of August, the production companies maintained a medium operating state decreasing the supply in the market to make the prices competitive.

The demand was weak with relatively low trading activity, and the market was very quiet on new orders. These factors turned the prices southwards. In the Chinese market, the monthly average prices went from about 1336 USD/MT in July’24 to around 1215 USD/MT in September of 2024. Overall, a weak market performance was witnessed.

Europe

The price trajectory seen in the European market was similar to that seen in the Chinese market. The adipic acid market showed a consolidating trend. The prices were declining as the gap between the supply and demand outlooks kept growing. Supplies exceeded the dull demand from the downstream sectors by large margins. Meanwhile, the German petrochemical firm BASF has announced to end of its production of adipic acid at its Ludwigshafen chemical complex in 2025. The company had already reduced its production of adipic acid in the European market citing the reasons of limited demand in the market.

North America

Adipic Acid prices witnessed a drop in the US region during the third quarter of 2024. Prices in the US market showed a declining trend mirroring the sentiments in it European and Asian counterparts. Adipic acid is used for the production of aliphatic polyester polyols, which go into polyurethane production for end uses such as elastic foam, coatings, and adhesives. The demand from these sectors was average which was the primary reason for the drop in prices as the adipic acid market remained sensitive to demand and supply balance. Though there were some occasional deviations, the overall trend remained largely underwhelming.

Analyst Insight

According to Procurement Resource, the adipic acid prices are expected to remain consolidated in the short term but prices may stabilize as the demand and supply balance improves.
 

Adipic Acid Price Trend for the Q2 of 2024

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Asia

In China, a slight upturn in the pricing pattern of adipic acid was observed during the second quarter of 2024. The monthly pricing average shifted from approximately 1320 USD/MT to 1366 USD/MT in this quarter, reflecting the stable dynamics of supply and demand. Although the cost support from the feedstock commodities was modest at best, the resurgence of procurement rates after the May Day holidays proved to be the primary driver of the market.

Even in the downstream industries, the polyamide sector had a major share in keeping the demand sector of the market upright. On the other hand, supply chains also worked at their peak efficiency to bridge the gap between the supply and demand sectors of the market, supporting an uptrend in the prices of adipic acid.

Europe

Adipic acid prices in Europe exhibited stability despite weak demand and rising freight rates in the second quarter of 2024. The adequate supply of the commodity, supported by low benzene prices, played a critical role in maintaining this stagnancy in the market. However, the overall market conditions were unfavorable, influenced significantly by challenges in the downstream automotive sector. According to government reports, Germany saw a notable decline in car registrations, particularly in the electric vehicle segment, further dampening adipic acid demand for automotive applications.

Despite stable raw material costs, increased transportation expenses due to geopolitical tensions and logistical disruptions posed additional concerns for the market. The downstream polyamide 66 market also faced difficulties due to weak demand from the automotive and construction sectors, exerting downward pressure. Therefore, with an oversupplied market and subdued demand, adipic acid prices followed a southward trail in the second quarter of 2024.

North America

The adipic acid prices in North America exhibited mixed sentiments as the downstream industries presented an uncertain market picture in the second quarter of 2024. The modest growth of automotive industries, the downward pressure of declining benzene prices, and geopolitical challenges further contributed to the limited growth of the adipic acid market. Further, the economic indicators also extended only limited support to both adipic acid and its derivatives in this quarter, depreciating the overall sentiments of the market. The cost support from feedstock commodities such as benzene had an additional negative impact on the market as the production costs slid southwards, supporting the downtrend in the prices of adipic acid.

Analyst Insight

According to Procurement Resource, the price of Adipic Acid is expected to fluctuate under the influence of limited cost support from the raw material industries and declining procurement rates from the downstream industries.
 

Adipic Acid  Price Trend for the Q1 of 2024

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Asia

The adipic acid market observed a vacillating price trend during the first three months of 2024. The prices in China initially inclined in the first couple of months and then declined swiftly over the next couple of months. Initially, the demands from downstream polymer and plastic industries were high, so the suppliers procured bulk quantities, anticipating higher returns on high demands.

A rising upstream cost trajectory also suggested increased revenue, so the inventories saw a heavy product influx. However, as time progressed the general commodity costs kept rising along with the hike in oil prices following the attack on the Russian energy infrastructure.

This trampled the end consumer purchases and led to downstream industries having dull demands. The prices then again declined as the demands crumbled down. After averaging around 1347 USD/MT in Jan '24 in the Chinese domestic market the adipic acid prices went to average about 1372 USD/MT in March '24.

Europe

The European market's performance for adipic acid was largely unsatisfactory compared to the global market. The prices here followed a downward facing trajectory for the most period.

The Russia-Ukraine war was still ongoing, and Ukraine attacked major Russian oil refineries, trampling its domestic and international oil supplies; this broke the end consumer's sentiments. Since the downstream consumption remained dull, the prices didn't have much room to improve. Overall, a weak market performance was experienced.

North America

The American adipic acid market mimicked the Asian market very closely during the given period of Q1'24. The prices saw an inclined pattern initially as the market queries saw a rise. The suppliers made some safe purchases as the demands rose. However, amidst a striking rise in the upstream costs, the demands started plunging.

The inventory stocks took dominance over downstream demands, and thus, after inclining in the first half of the quarter, the adipic acid prices declined in the second half. Overall, mixed market sentiments were observed in Q1'24.

Analyst Insight

According to Procurement Resource, the Adipic Acid price trends are likely to continue fluctuating in the coming months as well. Given the current supply and demand dynamics, not much change is expected in the prices.
 

Adipic Acid Price Trend for the October - December of 2023

Asia

In Asian countries, particularly China, domestic traders faced competition from the increased number of cheap imports of adipic acid-driven products into the region. This increased the competition in the market, and the manufacturers were forced to reduce their quoted prices to compete with the overseas industries. However, amid the slow economic development of the country, the rates of exports reached a new bar and thus somehow helped the market to maintain its pace.

Europe

In the initial months of the fourth quarter of 2023, the price trend of adipic acid stumbled due to fluctuations in the rates of procurement from the downstream industries. The manufacturing sector faced downturns as there was a substantial decline in the number of new orders. In view of this pessimistic approach of the consumers, the manufacturing sector adhered to several cuts in its production rates. The traders were thus forced to adjust their profit margins along with the trend in the market dynamics.

North America

The adipic acid price trend trajectory in the United States mirrored its historical patterns. The downstream sectors like Polyamide 66 exhibited limited fluctuations, and demand from these industries stayed subdued. The adipic acid industries faced a significant fall in demand, which caused many manufacturers to cut their production rates. The strengthening of the supply chain can be attributed to the reduced demand for inputs and rise in product availability which proved to be a challenge for the entire dynamics of the adipic acid market.

Analyst Insight

According to Procurement Resource, the price trend of Adipic Acid are estimated to follow the trend opted for polyamide and other downstream industries.
 

Adipic Acid Price Trend for the July - September of 2023

Asia

The adipic acid price analysis of the third quarter followed a bearish trajectory due to a variety of reasons. During this phase, the adipic acid price trend were negatively affected by the poor performance of the downstream industries and the reduction in the export rates. Further, the uncertainty in the cost of crude oil prices and the reduction in its production due to OPEC+ sanctions accelerated the downfall of the adipic acid price graph. The demand scenario was bleak not only in the domestic region but also in the overseas industries, and as a result, the adipic acid price trend nosedived.

Europe

The prices of adipic acid overturned in the third quarter of 2023 with the help of an increase in the cost of feedstock materials and crude oil. On the other hand, the demand from the end-user industries remained weak throughout the quarter due to the poor performance of the European economy. The growth of price trend of adipic acid was also affected by the rise in interest rates and fall in the number of sales of textile industries.

North America

The trajectory of adipic acid price graphs surged during the middle of Q3 while it declined during the initial and later phases. The surge in the prices was due to the rise in the cost of raw materials and energy production. However, the weak momentum of the trend was attributed to the fall in sales numbers, weak demand, and plunging economic growth of the region. Due to this, the inventory number shot up, forcing the traders to lower their price quotations and thus hampering the growth of adipic acid price trend.

Analyst Insight

According to Procurement Resource, the price trend of Adipic acid is expected to follow a weak growth rate majorly due to the struggling global economy.
 

Adipic Acid Price Trend for the First Half of 2023

Asia

In the initial months of the first quarter of 2023, the price trend of adipic acid inclined due to a rise in support from the rising feedstock benzene prices and stable demand from the downstream industries. However, the spot prices declined from around 1587 USD/MT in February to around 1314 USD/MT in June’23, thereby registering an overall decline of around 17%. The trend during this time was adversely affected by the global decline in demand for adipic acid and the availability of cheap import options in the region.

Europe

In Europe, the prices of adipic acid followed a southward trajectory as they suffered from the weak economic conditions in Europe. The first two quarters were also not favorable for the rise in prices of adipic acid as the hike in inflation rates led to the weakening of buying sentiments of consumers along with the reduction in demand from the textile sector.

North America

A decline in the prices of adipic acid was observed in the first two quarters of 2023 due to the weak performance of the market. The prices in this region also suffered from the poor demand from polymer and petrochemical industries, a rise in natural gas production (which negatively impacted production costs), and the contraction in new orders. The prices thus failed to gain the required momentum and fell gradually in North America.

Analyst Insight

According to Procurement Resource, the price of Adipic Acid is estimated to decline in the upcoming quarter as the major market players of adipic acid are showing feeble demand. Further, the rise in global inflation is expected to impact the adipic acid sector negatively.

Procurement Resource provides latest prices of Adipic Acid. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.