CEH Report

Table of Contents

Abstract

The major markets for adipic acid include use as feedstocks for nylon 66 resins and fibers, polyester polyols and plasticizers. After suffering losses in most end-use sectors following the recent economic downturn, adipic acid demand has begun to recover. In 2010 global demand for adipic acid had decreased about 5.5% from 2005, but improved about 1.5% from 2008 levels.

Approximately 55% of the world's adipic acid supply is owned and operated by INVISTA, Rhodia and Ascend Performance Materials, with manufacturing sites located around the world. In China, four major producers have emerged with a combined capacity that accounts for 21% of global supply. With capacity expansions currently under way, China will eclipse the United States as the largest manufacturer of adipic acid in the world within the next few years.

The following pie chart shows world consumption of adipic acid:

Nylon 66 fibers and engineering resins accounted for approximately 60% of total adipic acid consumption in 2010. Steady automobile and electronic manufacturing will be the basis for continued demand growth in nylon resins, while economic recovery and superior processability and performance will contribute to fiber consumption. Polyester polyols and plasticizers, which combined accounted for 24–32% of global adipic acid consumption in 2010, will continue to be concentrated largely in Asia.

In North America, Western Europe and Japan, growth in demand will improve over the next several years, as a result of growing demand for engineering resins and improving fiber sales. Sluggish housing markets in the United States will persist over the next few years, while impending recessionary conditions mount in Western Europe, limiting potential increases. China is expected to exhibit the fastest annual demand growth in the world at almost 6% to 2016. 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, continues to grow rapidly. Based on new capacity, China will become a major exporter of adipic acid within the next few years.