According to data monitored by SunSirs, the adipic acid market weakened in early June. The average market price was 8,866 RMB/ton on June 1 and 8,166 RMB/ton on June 9, representing a decline of 7.89%.

Key factors influencing the price fluctuations of adipic acid during this period.

On the supply side, maintenance-related production cutbacks provide a floor for the market, though long-term oversupply pressures persist; low operating rates are supporting short-term prices. The industry's average operating rate for June is estimated at around 60%, lower than the average for the first five months of the year. Manufacturers are maintaining healthy inventory levels without the pressure of high stockpiles; however, the destocking of inventories held at ports and by traders is proceeding slowly, as weak downstream purchasing interest drags down the pace of inventory reduction, resulting in a clear divergence in inventory status.

Demand side: End-user demand is sluggish during the traditional off-season, with only essential demand failing to provide significant market momentum. The polyurethane sector has entered a deep off-season; demand for shoe-sole resins and leather pastes has hit a seasonal low due to high temperatures, and the industry's overall operating rate remains below 50%. The PA66 market faces weak supply-demand dynamics, as end-user demand from the automotive and engineering plastics sectors has recovered more slowly than anticipated; nylon manufacturers are limiting procurement to essential production needs, offering little support to the adipic acid market.

Cost side: Support is marginally weakening. Raw material chain: The price anchor for crude oil has eased slightly, providing limited cost-side support. Manufacturers maintain basic processing margins and lack the deep losses that would force large-scale production shutdowns, making an extreme supply contraction unlikely.

Market Outlook

In summary, the supply-demand outlook indicates that despite high costs and a loose supply landscape, weak demand persists; nevertheless, adipic acid is poised for a strong upward trend in the latter half of June. Consequently, the market is expected to see a generally fluctuating upward trend, with prices projected to range between 8,000 and 9,000 RMB/ton.

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