Price Trend
According to the data of business associations’list, the domestic adipic acid market ended its rise in February in March, the market price generally fell, and the quotations of dealers continued to fall. By the end of the month, the quotations were generally between 8350 and 8600 yuan/ton. Overall, this month’s decline was 8.08%. Prices have basically fallen to early February levels.
II. Analytical Review
| http://www.thiourea.net |
This month, the market has fallen from a high level, the market atmosphere is cool, dealers’sentiment on entering the market is low, adipic acid prices have dropped by 500-700 yuan/ton compared with February, the market has gradually stalled. At present, the downstream market acceptance of high prices is also general, so that the profit margin is widened. Social inventory still shows some pressure, shipment strength has slightly declined compared with last month, there is some room for negotiation.
On the supply side, the supply is relatively abundant, the plant start-up rate is relatively high, this month distributors have been mainly shipped, the enthusiasm of taking goods is not high. On the other hand, the factory had too much stock in the past year, the market is good, many distributors accumulated a large amount of inventory. At present, the market is turning downward sharply, and the mood of market price reduction to inventory spread, resulting in continuous lower prices, market price quotations and prices. The prices of dealers in North China, East China and South China have been reduced to varying degrees. Some areas have declined by 800 yuan/ton, while most areas have maintained a weak position.
| Thiourea dioxide |
On the demand side, the supply is relatively excessive, but the downstream demand lacks substantial improvement. The downstream start-up rate is still slightly insufficient. The start-up rate is about 50%. The upstream adipic acid has not formed a strong boost. The market is still in the depot cycle. In addition, the cost side also makes adipic acid show some pressure. The upstream pure benzene price also fell sharply, falling by more than 8% in March, subject to cost. Facing the loss of profit, adipic acid market was dragged down by the downward trend of pure benzene. According to the monitoring of business associations, the reference price of East China market is about 8350-8500 yuan/ton, and the price of South China is generally between 8400-8600 yuan/ton.
3. Future Market Forecast
Analysts of adipic acid in the branch of business society and chemical industry believe that the current market turbulence is weakening, adipic acid is under the double pressure of excess supply and weak demand, and the market inventory is gradually high, the market is inevitably low. Later, the market may fall into the stage of weak rise and fall. Therefore, business associations believe that adipic acid market is difficult to improve greatly in the short term, and the recent market will be mainly weak in the interval.
| Thiourea |