[Chemical Knowledge]：What are the factors influencing the price of adipic acid? A detailed analysis of the reasons for the low yield of adipic acid

Adipic Acid Price Influence Factor Analysis

Foreword

Adipic acid (Adipic Acid) is an important chemical raw material, which is widely used in the production of nylon 6,6, polyurethane and other chemical products. Its price fluctuations have an important impact on the downstream industry. This paper will analyze the price influencing factors of adipic acid in detail from the aspects of supply and demand, raw material price, production process and cost, market competition and policy environment.

supply and demand relationship

The relationship between supply and demand is the core factor affecting the price of adipic acid. Adipic acid is mainly used in the production of nylon 6,6, and also has a place in the polyurethane industry. When downstream demand increases, such as growth in the automotive and textile industries, it drives up demand for adipic acid, which in turn pushes up its price. Conversely, when market demand decreases or there is an oversupply, the price of adipic acid falls. Seasonal factors also affect demand, such as increased demand for air conditioners in summer, which indirectly increases demand for polyurethane materials, which in turn affects adipic acid prices.

raw material price

The production of adipic acid mainly depends on raw materials such as cyclohexane and benzene, and the price fluctuations of these raw materials directly affect the production cost and price of adipic acid. The price of cyclohexane and benzene is greatly affected by the fluctuation of international crude oil price, so the change of crude oil price is an important factor of the price fluctuation of adipic acid. When the price of crude oil rises, the cost of cyclohexane and benzene increases, which in turn drives the price of adipic acid up, and vice versa.

Production Process and Cost

Different production processes and technical levels have a direct impact on the production cost of adipic acid. The traditional production process of adipic acid is mainly hydrogen peroxide oxidation, but in recent years, the research and application of bio-based adipic acid has gradually increased. Although the bio-based production method has environmental advantages, the current cost is higher, so the impact on the price is greater. The cost of renewal and maintenance of production equipment, energy consumption and environmental protection treatment will also affect the production cost and market price of adipic acid.

market competition

The global adipic acid market is highly competitive, with major producers including Ineos (Ineos), DSM (DSM) and BASF (BASF). These enterprises reduce costs and improve market competitiveness by expanding production capacity, upgrading technology and optimizing production processes. Competition between regional markets also affects prices, for example, China, as a major producer and consumer market for adipic acid, has a greater impact on the global market. When supply increases in the Chinese market, global adipic acid prices are likely to fall; conversely, when supply decreases, prices rise.

Policy Environment

Environmental policies and trade policies of various countries also have a significant impact on the price of adipic acid. Due to the large amount of pollutants involved in the production process of adipic acid, many countries have put forward strict environmental protection requirements for its production enterprises. These environmental regulations increase the production costs of enterprises, which in turn affects the market price of adipic acid. For example, in recent years, China has strengthened environmental protection supervision and strictly rectified high-polluting industries, which may lead to a decrease in the supply of adipic acid and an increase in prices in the short term. International trade policies, such as tariffs and anti-dumping measures, also have an important impact on the import, export and price of adipic acid.

Macroeconomic environment

Changes in the macroeconomic environment also have an indirect impact on adipic acid prices. During the economic boom, the increase in production activities in various industries will also increase the demand for chemical raw materials, thereby driving up the price of adipic acid. Conversely, in times of recession, when market demand decreases, adipic acid prices may fall. Macroeconomic factors such as monetary policy, exchange rate fluctuations, and inflation also indirectly affect the price of adipic acid by affecting business costs and consumer purchasing power.

Technological progress and innovation

Technological progress and innovation are the long-term factors affecting the price of adipic acid. With the advancement of technology, the application of new processes, new materials and new technologies can reduce the production cost of adipic acid and improve production efficiency. For example, in recent years, the research of bio-based adipic acid technology has made some progress. Although the current cost is high, with the maturity of the technology and large-scale production, its cost is expected to decrease, thus affecting the market price. Process optimization and equipment upgrades can also reduce energy consumption and raw material consumption, further reducing production costs.

Conclusion

The price of adipic acid is affected by a variety of factors, including supply and demand, raw material prices, production processes and costs, market competition, policy environment, macroeconomic environment, and technological progress. These factors interact to determine the market price of adipic acid. In the actual market, enterprises need to take these factors into account and adopt flexible production and marketing strategies to cope with market changes and maintain competitiveness. Policy makers should also pay attention to these factors to ensure the healthy development of the market.