CEH Report

Table of Contents

Abstract

The major markets for adipic acid include its use as a feedstock for nylon 66 fibers and resins, polyester polyols and plasticizers. In 2008, global demand for adipic acid had decreased 7.6% since 2005.

The following pie chart shows world consumption of adipic acid:

In 2008, nylon 66 fiber and engineering resins accounted for 58% of total adipic acid consumption. These markets are almost entirely captive, with INVISTA and Solutia dominating the markets in North America; Rhodia, INVISTA and BASF are the top producers in Western Europe, and Asahi Kasei dominates the Japanese market. Globally, the polyester polyol and plasticizer markets account for 25% and 3%, respectively, of total adipic acid consumption.

Over the past few years, adipic acid has seen record raw material and energy costs cut into price margins and hamper demand growth in end markets. For North America, Western Europe and Japan, demand growth will be low to declining as sluggish automotive, housing and construction markets only slightly improve in 2009. Reduced operating rates and capacity reductions will compensate in the short and long term for slowed markets in North America and oversupply in Western Europe.

China is expected to exhibit the fastest demand growth in the world, driving total Other Asian consumption growth through 2013. Use in the production of nylon polymers as well as polyester polyols, which are used in hot-melt adhesives for shoe soles and other products, has grown swiftly over the past five years, outpacing supply. Chinese imports of adipic acid increased between 2003 and 2007 but with the slowed global economy, imports decreased in 2008. Trade should increase as the economy improves, but will show declines as new capacity comes on stream over the next few years. Demand growth is forecast to be positive in most other regions but on a much smaller scale.