Adipic Acid Market Overview This Week

PUdaily, Shanghai-Adipic acid (AA) markets are still lacklustre.

Domestic suppliers

Shandong Bohui adipic acid facility shut down for maintenance in late October but resumed operation now; Shandong Hongye and Xinjiang Tianli keep 70%-80% operation rates while Liaoyang Petrochemical remains full loaded operation now. The three producers in Shandong and Xinjiang mainly explore and serve domestic clients; while Liaoyang Petrochemical largely supports domestic markets but still exports to oversea markets with good reactions from clients.

According to the sources of Liaoyang Petrochemical, in consideration of increasing demands and unhealthy demands in future, the company will explore oversea markets actively.

Downstream clients

Demands from resin sectors are decreasing in the markets. PU resin and shoe soles are moving into traditional slack seasons with poor demands in future. On the other hand, its raw materials of adipic acid and pure MDI are slowing down but other feedstocks of DEG and MEG are rising slightly, mainly attributed by rising crude oil and high oversea USD prices. However, along with the restart-up for DEG facilities abroad, the supply volumes to Chinese markets will be improved, thus, MEG and DEG prices will not surge up for a long time.

Last Sunday, the final determination for anti-dumping rates was issued and the anti-dumping rates for leading oversea suppliers are decreasing except America. After the revision, the anti-dumping rates are at the range of 5%-16%. Regarding November quotations, BASF, Radici and Rhodia offer at USD 1900/t; Asahi quotes at USD 1950/t; while the AA facility of Invista in Singapore resumes supply with no quotations yet.

In the eastern trading markets, domestic materials are negotiated at RMB 13600-13800/t; high-end imports are offered at RMB 15800-16000/t. While in the south, home-made materials are bargained at RMB 13900-14300/t while imports are quoted at RMB15700-16000/t.