The upward pressure across the value chain continues, from crude oil to PA66.
LANXESS increases prices of adipic acid from 1 December, according to a recent company press release.
The company said the reason for the €90/mt increase is the higher raw material costs.
The main route to make adipic acid is benzene to cyclohexane.
And benzene has recovered since April when it touched a low point because of the pandemic.
However, benzene prices are still relatively low compared to pre-pandemic levels.
Therefore, benzene prices should continue to find support amid a much improved outlook and a higher energy cost environment.
Crude oil prices climbed from $40/bbl to around $48/bbl recently.
This recovery across the value chain is also placing pressure downstream from adipic acid, namely on prices of its main market, nylon 66 (PA66).
And in turn demand for PA66 continues to find support from a recovery of the automotive sector.