According to the monitoring of the business community, the domestic adipic acid market rose sharply after the festival (10.8-14). According to the monitoring of the business community, the increase was 12.16%. The market price range of adipic acid at the weekend was 10800-11300 yuan/ton. The rise was mainly due to the double advantages of supply side and cost side.

Supply side: price adjustment of large factories&low operating rate

From the perspective of market supply, after the festival, suppliers were generally very popular

Cost: Pure benzene goes up with crude oil

After the festival, pure benzene mainly rose and fell. At present, the spot price in East China is 7800-8300 yuan/ton. According to the monitoring of the business community, the post festival range of pure benzene is 2.21%. During the National Day holiday, international crude oil prices rose sharply, boosting downstream chemicals. The price of pure benzene also rose driven by crude oil. The supply of pure benzene in East China is tight, and spot prices are generally higher. At the weekend, with the release of the news of the arrival of the ship, pure benzene stopped rising and fell.

Demand side: just need continuous follow-up

The downstream demand of adipic acid has not changed much, and the demand remains rigid. According to the monitoring of the business community, the downstream PA66 rose by 1.01% after the festival, which slowed down compared with that before the festival. At present, the supply of goods in the market is relatively tight, downstream procurement continues to follow up, and the stock before the festival is exhausted. The manufacturers continue to purchase after the festival, and the transaction atmosphere is getting stronger. At the weekend, the market price of PA66 in Zhejiang was 25000 yuan/ton.

Industrial chain

The above figure shows that the adipic acid industry chain is in full swing after the festival. From the perspective of industrial chain growth, the growth of adipic acid is stronger than that of upstream and downstream. This shows that the manufacturer’s profits have been continuously improved, and the downstream profits have been squeezed.

Future outlook

The business community believes that the favorable situation on the supply side may continue, and the probability of the recent increase of the unit operating rate is small; However, on the cost side, crude oil and pure benzene fell in shock, and the adipic acid gradually stopped rising near the weekend. Some dealers gave up profits to ship, indicating that the market had peaked. In addition, it is difficult for the demand side to follow up. After comprehensive consideration, the price of adipic acid may be loose, but the downward trend will not be too large.