China adipic acid(AA) suppliers kept their list prices at high levels in early November and showed an obvious intent to boost the market. However, transactions were sluggish, and market fluctuations were weak. Most traders held a wait-and-see stance and followed the market. AA transaction prices edged down due to soft demand, declines in prices of feedstock benzene and recurrent epidemic. On November 3, the prevailing offers in East China stood at CNY 10,000-10,400/tonne DEL by bank draft payment.

In mid-month, benzene prices kept fluctuating at low levels, and the impact of supply changes was also limited. Downstream manufacturers still showed weak buying interest and most traders felt bearish. Thus AA prices gradually went down. Most actual orders were placed by manufacturers only to sustain production and negotiated at lower prices. Later, although prices of crude oil and benzene edged up, some suppliers were expetced to shut facilities, lending a certain support to the AA market, but AA prices continued to decline within a narrow range as soft demand was still the main negative factor, and some regions in China were affected by the epidemic.

Settlement prices for October: Liao Yang Shihua: CNY 11,400/tonne; Huafon,Tangshan Zhonghao Chemical and Haili Chemical: CNY 11300/tonne. List prices for November: Liao Yang Shihua and Henan Shenma Nylon Chemical:CNY 12,600/tonne (later decreased to CNY 12,100/tonne); Huafon, Tangshan Zhonghao Chemical, Haili Chemical and Xinjiang Tianli: CNY 12,500/tonne (later reduced to CNY 12,000/tonne). 

Chinese AA market kept going down in late month. Costs lent weaker support as crude oil prices fluctuated downward, and benzene prices continued to fall. Demands in TPU, PU resin for synthetic leather and other downstream sectors remained sluggish and their operating rates reduced slightly from the early month. Influenced by multiple negative factors, manufacturers hunted for bargains and made purchases on rigid demand. Actual orders were negotiated at lower prices. As a result, the AA market ran weakly. Chinese AA market showed a gradual decline throughout the month. On November 29, the prevailing offers in East China stand at CNY 9,100-9,300/tonne DEL by bank draft payment.

How will the AA market move amid such sluggish demand? The subsequent market movoment depends on guidance from list prices and settlement prices disclosed by suppliers at the end of the month, as well as procurement situation in downstream sectors.

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