Market Challenges: Volatility in crude oil prices

The volatility in crude oil prices has emerged as a major challenge restricting the growth of the global dodecanedioic acid market. Dodecanedioic acid, also known as DD acid, is primarily manufactured by the oxidation of crude oil. Hence, the fluctuating crude oil prices directly impact the production cost and supply of DD acid in the market. When crude oil prices rise, it increases the input costs for DD acid manufacturers substantially. This reduces their profit margins and discourages capacity expansion plans. It also leads manufacturers to hike the prices of DD acid to pass on some of the increased costs to customers. The elevated prices can dampen the demand from end-use industries like plastics, powder coatings, adhesives etc. that utilize DD acid as a raw material. This disruption in demand-supply equilibrium acts as a growth deterrent for the overall market.

Market Opportunities: Expanding applications in polyurethane industry

The polyurethane industry has been experiencing steady growth due to the versatile properties of polyurethane materials. Polyurethanes are widely used in applications such as furniture, bedding, insulation, automotive, footwear, and many others due to their cushioning, flexibility and sealing capabilities. Dodecanedioic acid plays a crucial role as a raw material in the production of polyurethanes. As the demand for polyurethanes rises with expanding end-use applications, the requirement for dodecanedioic acid is also growing.