CHEM-NET FACTS

1 NOVEMBER 2013

CHEMICAL MARKET INSIGHT AND FORESIGHT - ON A SINGLE PAGE

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Buyers report further erosion in prices for adipic Sep-2013 Oct-2013 Oct-2013 Short-Term
US PRICES /lb /lb $/ton Price Trend
acid in North America, but the reasons are Adipic Acid Contract 95-105 90-100 DDP 1984-2205
not immediately clear. Sellers were achieving WEST EUROPE PRICES /ton /ton $/ton
adipic acid prices higher than $1.00/lb earlier Adipic Acid Contract 1680-1720 1650-1700 DDP 2251-2320
AH Salt Contract 2200-2300 2200-2300 DDP 3002-3138
in the year, but most business is now below ASIA PRICES $/ton $/ton
this level. Feedstock costs are probably not Import Contract 1850-1880 1850-1880 CFR
the main factor in lower prices for adipic acid. = Provisional = Revised
Benzene spot prices appear to be pointed
= Consumers of a few thousand tons per year
downwards again, but the October contract
price of $4.37/gal is not much below recent
highs. It is true that prices for polyamide 66
have been drifting lower in recent weeks. But US Dollars per Ton ADIPIC ACID PRICES : 2 YEAR SPAN
polyamide 66 production is mostly integrated 2750

with adipic acid production, so the cost of 2500

adipic acid is usually a calculated transfer 2250

price rather than a negotiated market price. 2000

What appears to be dragging down adipic 1750

acid prices in North America is the general 1500
weakness of global markets that has come
1250
with new capacity in China. ov c b ar r
ay n l g p ct ov c b ar r
ay n l g p ct
N De 12 Fe M Ap Ju Ju Au Se O N De 13 Fe M Ap Ju Ju Au Se O
20 M 20 M

Producers efforts to squeeze higher margins Product Location Definition

from a well-supplied European market are Adipic Acid

Adipic Acid
United States
West Europe
Contract DDP
Contract DDP
running into trouble. Adipic acid prices held Adipic Acid Asia Import Contract, High Quality CFR

mostly steady in the third quarter, despite the

ups and downs of benzene prices. But buyers
are now demanding that at least a share of
the 51/ton decrease in the October benzene US Dollars per Ton ADIPIC ACID PRICES : 10 YEAR SPAN
4000
contract price should be passed on in the form of 3500
lower adipic acid prices. An October decrease 3000
of around 20/ton has been agreed at some 2500
accounts, but this may not represent the full 2000

picture. Long-term market conditions are very 1500

uncertain, especially in West Europe. Adipic 1000

acid producers with integrated polyamide 66 500

capacity are struggling to optimise the split 0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
between captive demand and merchant sales
to non-nylon sectors. Product
Adipic Acid
Location
United States
Definition
Contract DDP
Adipic Acid West Europe Contract DDP

Freely negotiated export prices for high-quality Adipic Acid Asia Import Contract, High Quality CFR

Japanese material in Asia are thought to have

increased by $15-20/ton in October to levels
representing $1850-1870/ton cfr Northeast US Dollars per Ton BENZENE PRICES : 2 YEAR SPAN
Asia. But there is no sign of a pick-up in Asian 2000

demand for adipic acid. Lower spot prices for 1750

adipic acid in China in October are the result 1500
of rising inventories.
1250

Short-Term Price Trends 1000

750

Feedstock prices are down for now, but no one 500

ov ar r
ay n l ct ov ar r
ay n l ct
can rule out a quick reversal. Prices for adipic N De
c
20
12 Fe
b
M Ap M Ju Ju Au
g
Se
p
O N De
c
20
13 Fe
b
M Ap M Ju Ju Au
g
Se
p
O

acid will depend on benzene prices in the next Product Location Definition
few weeks. Benzene United States Contract FOB
Benzene West Europe Contract NWE FOB
Benzene Asia Contract CFR

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