The new report by Procurement Resource, a global procurement research and consulting firm, looks in-depth into the costs involved in the production of adipic acid. The comprehensive report analyses the production cost of the material, covering raw material costs and co-product credit, equipment costs, land and site costs, labour wages, maintenance costs, financing charges, and the depreciation cost. The extensive study describes the step-wise consumption of material and utilities, along with a detailed process flow diagram. The report also assesses the latest developments within the adipic acid industry that might influence the costs of production, looking into the capacity expansions, plant turnarounds, and mergers, acquisitions, and investments.
Adipic acid is an organic compound. It appears as a white crystalline solid, which is insoluble in water. It is considered to be the most important dicarboxylic acid for industrial purposes. It is widely produced as a precursor for the production of nylon. Adipic acid is used to make foams and plastics.
With the pandemic hitting the chemical sector of the global economy, the need to adapt to new methods has become a must. Manufacturers have also increased prices for their raw material offered, which has further resulted in the increase in chemical prices. In September 2020, a specialty chemicals company based in Germany, LANXESS chemical company, has increased their prices for adipic acid due to the sudden rise in the prices of the raw material used to make adipic acid. Additionally, due to these increasing prices of raw material, a China-based petrochemical company, Shandong Yuhuang Chemical Co. Ltd, has also faced a decline in their net profit by 30.9% in the first half of the year. These factors are expected to influence the production cost of adipic acid.
The production cost report by Procurement Resource assesses the production of adipic acid from cyclohexanone and cyclohexanol via oxidisation, via carbonylation, and from cyclohexene via oxidative cleavage. One of the most common methods used to produce adipic acid is from cyclohexanone and cyclohexanol via oxidation. Cyclohexanone and cyclohexanol together form KA oil (Ketone-Alcohol oil). KA oil is then oxidised in the presence of nitric acid to give out adipic acid.
Procurement Resource ensures that our clients remain at the vanguard of their industries by providing actionable procurement intelligence with the help of our expert analysts, researchers, and domain experts. Our team of highly seasoned analysts undertake extensive research to provide our customers with the latest and up-to-date market reports, cost-models, price analysis, benchmarking, and category insights, which aid in simplifying the procurement process for our clientele. We work with a diverse range of procurement teams across industries to get real-time data and insights that can be effectively implemented by our customers. We also track the prices and production costs of an extensive range of goods and commodities, thus, providing you with the updated and reliable data. We, at Procurement Resource, with the help of the latest and cutting-edge techniques in the industry, help our clients understand the supply chain, procurement, and industry climate, so that they can form strategies which ensure their optimum growth.