Price trend

According to data from the SunSirs spot market tracking service, adipic acid prices trended downward in June, with the market weakening. The average market price was 8,866 RMB/ton on June 1 and 7,983 RMB/ton on June 25, representing a decline of 9.96%.

Key factors influencing the rise and fall of adipic acid prices in June

Supply side: In June, the industry operating rate remained at a relatively low level, hovering around 63%. While the tightened supply provided some price floor support, it was insufficient to reverse the downward price trend given the extremely weak demand.

Demand side: The traditional off-season for chemical products has arrived, leading to reduced operating loads in downstream sectors such as slurry and shoe-sole raw materials. Downstream players have generally adopted a cautious "replenish-as-needed" strategy with low purchasing interest; consequently, the destocking of market inventories has been slow, and transactions for higher-priced supplies have proven difficult.

Cost side: Entering June, the baseline for international crude oil prices shifted slightly lower, and the cost support provided by the direct feedstock—pure benzene—to adipic acid weakened significantly compared to the first quarter. As a result, adipic acid prices have struggled to replicate the cost-driven, one-way rally seen in March.

Market outlook

In summary, supply-demand forecasts indicate weakening cost support, moderate supply pressure, and softening demand; consequently, the adipic acid market is likely to halt its decline and stabilize in early July, characterized primarily by fluctuating upward movement. Overall, the market is expected to trend upward with some volatility, with prices projected to range between 8,000 and 9,000 RMB/ton.

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