Price trend

According to data from SunSirs' data, adipic acid prices experienced weak fluctuations in May, with market trends showing slight volatility. On May 1, the average market price for adipic acid stood at 9,100 RMB/ton; by May 28, the average price had risen to 9,133 RMB/ton—an increase of 0.37%.

Market analysis

Supply Side: Domestic adipic acid manufacturers have reduced output due to scheduled maintenance; however, pressure from overcapacity persists. Industry operating rates declined from 75% in April to 65% in late May, as multiple production units—such as those at Hualu and Shenma—either lowered operating loads or underwent brief shutdowns, resulting in a short-term contraction in supply. Factory inventories remain at a neutral level, while port inventories are low; consequently, there is currently no significant pressure regarding inventory accumulation.

Demand Side: Amidst the traditional off-season, downstream sectors are generally sluggish. Demand from end-use industries—specifically automotive and electronics—remains weak, leading to cautious procurement of raw materials. Orders for shoe sole precursors and slurries are insufficient during this off-season, with purchasing activity driven primarily by immediate, essential needs.

Cost Side: The downward trend in pure benzene prices has resulted in diminished cost-side support. Regarding the raw material pure benzene: prices retreated in mid-to-late May, and Sinopec subsequently lowered its posted prices. This development has alleviated cost pressures for adipic acid producers, though it has simultaneously removed the cost-based support for potential price increases.

Market Outlook

In summary: Forecasts based on supply and demand fundamentals indicate that cost support is weakening, supply is tightening, and demand is declining; consequently, adipic acid prices are showing limited upward momentum in early June. From a technical perspective, the market for adipic acid experienced a modest uptick in May, though the extent of the increase was limited. Therefore, the overall market trend for adipic acid in early June is expected to be predominantly weak and downward-trending, with prices projected to range between 9,000 and 9,300 RMB/ton.

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