Bio-adipic Acid Price Trend and Forecast

Regional Price Overview

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

Bio-Adipic Acid Price Trend for the Second Half of 2023

Bio-Adipic acid is organically sourced adipic acid that employs fermentation of natural fatty acid obtained via vegetable oils. Coconut oil is greatly used for bio-adipic acid; thus, their price trends also show a close resemblance. During the said period of the second half of 2023, bio adipic acid’s market performance was highly mixed; the price trend saw close oscillations.

Bio-adipic Acid Price Chart

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The third quarter was relatively weaker than the fourth quarter for the bio-adipic acid market performance. Since the supply and demand maintained marginally stable dynamics, the prices didn’t deviate much at the beginning; however, as the fourth quarter began, the prices started improving.

The gradually severing supply chain situation around the globe impacted the bio-adipic acid market as well. As the Red Sea issues mounted and another war began in the Middle East between Israel and Hamas, the procurement of raw materials and shipping of the product became difficult. Overall, mixed market sentiments were witnessed in H2’23.

Analyst insight

According to Procurement Resource, Bio-Adipic Acid prices are likely to oscillate in the coming quarter. However, the trade is likely to get better as the supply chain issues get resolved or alternate routes are established.

Bio-Adipic Acid Price Trend for the First Half of 2023

As Bio-Adipic Acid is sourced from natural oils like coconut and palm oil, the price trend for Bio-Adipic Acid directly follow the price fluctuations in its feedstock.

In the first half of 2023, coconut oil prices fluctuated due to the uncertain market dynamics in major exporting countries like Indonesia and Malaysia. Prices declined in the middle of Q1 after having a fair start in the month of January because of impending stocks and low demands. Hence, the coconut prices kept on the lower side, thereby impacting the price trend for Bio-Adipic Acid.

European and American regions, too, had similar oscillating price trend. Prices started high and declined later as other edible oil prices also decreased around that time. Good productivity was the major reason for the declining trend. Overall, the Bio-Adipic Acid market remained anchored in H1’23.
Analyst Insight

According to the Procurement Resource, Bio-Adipic Acid prices are expected to continue fluctuating and grow. The market projections look good. Further, the edible commodity prices will greatly depend on the revision outcome of the Back Sea Treaty. Overall, the projections look good for the Bio-Adipic Acid market.

Bio-Adipic Acid Price Trend for the Second Half of 2022

Bio-Adipic Acid is produced via the fermentation of fatty acids obtained from natural sources like palm and coconut oil. Hence, the price trend for bio-adipic acid are closely dictated by the prices and availability of the above-mentioned feedstocks. Indonesia, being one of the major producers of coconuts witnessed an amazing production of both coconut oil and palm oil in H2’22. Hence, the feedstock prices in the Asia Pacific region remained on a downhill trajectory throughout the said period.

European shores too enjoyed good productivity of coconuts so price trend for feedstock remained low swinging. During the latter part of Q4, the prices started rising again because of lowered stocks, however, the ease in Indonesian export policies aided the situation. American region too replicated global price trend for feedstock coconut oil and palm oil. Therefore, the price trend for bio-adipic acid kept on the lower side given the low prices of its feedstock and the crisis raging in the countries considering the current economic backlash.

Analyst Insight

According to the Procurement Resource, the price trend for bio-adipic acid are likely to be volatile in the coming months given the bumper production of coconuts and palm oil. However, the current market dynamics amid the economic crisis and falling consumer confidence will deeply impact the prices of biochemicals.

Bio-Adipic Acid Price Trend for the Second Quarter of 2022

Biobased chemicals such as bio-adipic acid serve as suitable alternatives to conventional chemicals as it helps to reduce the dependence on fossil fuels, thereby reducing the carbon footprint. With the surging crude oil and natural gas prices, many companies are now investing the biobased chemicals. Bio-adipic acid is obtained from raw sugars, glucose and fatty acids derived from coconut oil.

The price of feedstock coconut oil remained strong throughout the Asian market owing to the supply crunch in the global market. With the absence of the Black Sea sunflower oil and palm oil export ban by Indonesia, oil prices exploded globally.

The prices of feedstock coconut oil averaged 2985 USD/MT FOB Subic (Philippines). Similar price trend were seen in the European and US domestic markets due to the trade bottlenecks and lack of valuable imports from Malaysia and the Philippines due to adverse climate conditions.

The prices of raw sugars soared throughout the Asian market owing to the robust demand from the ethanol and biofuel industries. In the USA, the prices of raw sugars peaked at 808.38 USD/MT in April and further stabilized around 797.18 USD/MT in June 2022.

Whereas in Brazil, the prices of raw sugars declined from 556.20 USD/MT ( February) to 492 USD/MT in June due to the lousy harvest owing to the adverse climate conditions caused by the La Nina weather phenomenon.

The high prices of biomass feedstock kept the price trend of bio-adipic acid strong throughout the first half of the said year.

Procurement Resource provides latest prices of Bio-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.