This week (4.22-28), domestic adipic acid maintained stable operation. According to the Commodity Market Analysis System of Shengyishe, as of April 28th, the weekly increase and decrease of succinic acid for this week was 0. At present, the market quotation range for adipic acid is between 9500-9700 yuan/ton. The main reason is that there is not much positive impact on the cost side, supply and demand remain stable, and the market lacks momentum to push up.

Cost side: Overall profit from raw material costs

Since entering April, crude oil has maintained a range adjustment as the main trend, and the cost side has gradually weakened compared to the previous period. The domestic pure benzene price has not changed much this week. According to the Commodity Market Analysis System of Shengyishe, pure benzene has slightly declined this week, with a decline of 0.1%. The main refinery’s quotation has not changed much. Although the price of pure benzene has slightly fallen this week, there is still some support on the cost side at present; By the weekend, the spot trading range in East China is between 8700-8750 yuan/ton.

Supply side: Rumors of continuous supply and tightening expectations for equipment maintenance in enterprises

From the perspective of market supply: At the end of the month, domestic large factories of adipic acid introduced settlement prices, which have not changed much compared to the previous month. But the listing price in May was generally lower than last month. There may be room for price loosening by the manufacturer in the later stage. This is mainly based on the current situation where there is not much change in the equipment. But with the continuous release of maintenance news in the later stage, the expected decrease in supply may lead to a sustained strong operation of adipic acid. Specifically, in terms of equipment, both Haili and Tianli High tech have maintenance plans next month. In the later stage of supply, it may be beneficial for the formation of adipic acid.

Demand side: Difficulty in forming a strong boost on the demand side

The downstream of adipic acid is relatively sluggish. Terminal procurement maintains essential needs. Taking PA66 as an example, the price remained low and unchanged this week. Currently, the price has reached a high level, and downstream consumers generally have resistance to high prices. The demand in the end market is average, and more purchases are made on demand. The market spot supply and demand remain stable. According to the Commodity Market Analysis System of Shengyishe, the price of PA66 this week was 0. During the weekend, the market price of PA66 in Zhejiang region is around 23000 yuan/ton.

Future prospects

Regarding the future market, analysts from Shengyishe Adipic Acid believe that the current cost side is favorable or downplayed, with crude oil at a high level, but the possibility of further upward movement in the future is small. Pure benzene prices may remain weak, and factories have shown a clear willingness to support the market. The supply side will still maintain a tight pattern, which will continue to support the strong pattern of Adipic Acid prices. Considering the constraints on the demand side, the increase in adipic acid will be limited.