San Jose, California-- The global market for Adipic Acid is projected to reach over 6 billion pounds by the year 2017, according to a new report from Global Industry Analysts.
Growth in the market is chiefly driven by an increase in demand from end-use segments, particularly in emerging markets of Asia-Pacific and Middle East. Meanwhile, development of newer applications of adipic acid is poised to increase global production levels, GIA said.
Adipic acid is used as a raw material in the production of synthetic fibres, nylon, plastics, coatings, low-temperature synthetic lubricants, plasticisers, polyurethane resins, and also adds a tangy flavour to artificial food products. Demand for adipic acid from its largest end use segment, nylon 66 fibres, weakened during past few years in the US, Western Europe and Japan.
However, production of adipic acid increased considerably in China, GIA points out. The region also witnessed a rapid increase in consumption of adipic acid by polyester polyols that find applications in shoe industry. China is the wrld's largest importer of adipic acid. In the recent past, total imports of adipic acid into China also intensified from regions such as Japan, Republic of Korea, Singapore and Ukraine. Rapid industrialisation in Asian countries such as India and China is expected to increase the global demand for adipic acid.
Additionally, nylon production in Asia and the US is projected to increase in the near future, which thereby is poised to fuel growth in the industry. In the present scenario, there are about 23 adipic acid production units worldwide, with majority existing in the developed western countries or developing markets. In 2010, the global adipic acid production level was recorded at over 2800 kilotonnes, with the USmaking up the largest share at over 30 percent of the global output.
GIA estimates that more than half the total capacity is derived from integrated chemical units that utilise adipic acid at the production site itself.
In China, weak demand from polyurethane was considered a major culprit responsible for the massive fall registered in adipic acid prices. Excessive supply of adipic acid in the international markets and reduced demand dented the Chinese markets as well, reducing domestic cost of the product.
See more at: www.strategyr.com/Adipic_Acid_Market_Report.asp