14 April 2010 15:14 [Source: ICIS news]
LONDON (ICIS news)--The European adipic acid market is at a critical point because of low availability resulting from stronger-than-expected demand in Asia and undercapacity due to previous plant closures, market sources said on Wednesday.
“I don’t remember in my history there being such a shortage. All I can say is the market is terribly short,” said an adipic acid buyer for the production of polyurethane.
The buyer said it believed that the tightness in Europe was the result of a combination of factors, including the closure of Invista’s 270,000 tonne/year facility in the UK, as well as closures in the US, and “the extreme and sharp demand in China” for nylon and non-nylon applications.
“It’s not a matter of price, it’s a matter of getting the product,” said the buyer.
According to a major producer, there were two main reasons for the current state of the European adipic acid market.
“In 2008, people closed down, especially Invista, and there have been no new capacities in ?xml:namespace>
“Demand in Asia is booming,
A second major producer, which also voiced concerns about low availability, expressed the need to narrow the gap between the values of adipic acid in Europe and those in
“The price gap between Europe and Asia is substantial, because the price increase in Asia started earlier,” said the second producer, adding that European suppliers would continue to export to
In Asia this week, spot adipic acid moved up $50/tonne (€37/tonne) to $2,600-2,700/tonne CFR (cost and freight) NE (northeast) Asia, according to data from global chemical market intelligence service ICIS pricing.
In Europe, a producer and a distributor both valued spot adipic acid at €1,800-1,900/tonne FD (free delivered) NWE (northwest
($1 = €0.74)
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