Ascend Adipic Acid Hit By Force Majeure, Market Expects Supply Resumption In Mid-September

Ascend Performance Materials LLC announced force majeure on adipic acid last month, citing a disruption in the supply of its raw material, cyclohexane. In an August 17 letter to customers, the company stated, “Despite actively taking remedial measures, Ascend has been unable to secure sufficient alternative sources of cyclohexane to ensure timely supply and meet production demands.”

The letter states that adipic acid orders may be subject to delivery delays, quota allocations, or other adjustments. Available supply will be delivered in accordance with the terms of the contract and the applicable quota allocation mechanism.

Industry insiders participating in the U.S. adipic acid market have revealed that, based on information obtained from business communications, market supply is expected to resume in mid-September.

Ascend Performance Materials has not yet responded to the request for comment.

Adipic acid is a core raw material for nylon 66 (PA66). According to data from S&P Global Commodity Insights CERA, there are only two adipic acid producers in North America: Ascend and Invista. Ascend operates two adipic acid units at its Pensacola, Florida facility—one using cyclohexane as the feedstock and the other employing a phenol-based process—while Invista produces adipic acid from cyclohexane at its Victoria, Texas plant.

Cyclohexane is typically produced by the hydrogenation of benzene. There are three producers in North America: Phillips 66, Motiva Enterprises, and Citgo Petroleum.

According to the September 2 assessment by S&P Global Commodity Insights’ Platts, the ex-works price of nylon 66 in the U.S. Southeast remained flat week on week at 182 cents per pound. Stable upstream adipic acid prices and persistently weak market demand jointly supported the steady pricing.