Market Analysis - Monthly Report - June, 2020 - Phthalic Anhydride

What's hot and trending this month

1) A pullback after the market rally in June

2) Phthalic anhydride is very profitable in June

3) The 6-month naphthalene method showed obvious deficit of phthalic anhydride

This month's market summary

This month, the domestic phthalic anhydride market rose after falling, just need to maintain the situation. The main driving factors of the rise in the phthalic anhydride market are the higher bids for industrial naphthalene and the low supply level of the phthalic anhydride industry. The industrial naphthalene price remains high, naphthalene series phthalic anhydride deficit is serious, together with the phthalic anhydride manufacturer partial negative inventory state, drives the merchant to price sentiment. But with the rise of the phthalic anhydride industry, followed by the increase of the downstream resistance. Low season on the basis of terminal demand has not improved, to maintain the phthalic anhydride rigid, faced with poor new orders, the industry is also under pressure, in order to reduce the shipping resistance, both phthalic anhydride or naphthalene phthalic anhydride have a certain profit callback, but considering the lack of goods and naphthalene phthalic anhydride deficit, the volatility remained narrow. In contrast to the severe loss of naphthalene phthalic anhydride, the o-phthalic anhydride industry is profitable.

Next month market forecast

The spot supply level of the phthalic anhydride industry is low, and some manufacturers are in the state of negative inventory. It is expected that the situation of the shortage of phthalic anhydride goods will continue to some extent, which still supports the market. Demand has not improved substantially, but needs to be maintained. On the basis of off-season, the production and sales of phthalic products are limited, coupled with the downstream resistance, the new orders of the phthalic anhydride industry is limited, is expected to be more on demand procurement; The raw material phthalic anhydride industry is still profitable. Industrial naphthalene price remains high, but naphthalene series phthalic anhydride deficit is serious, by industrial naphthalene and naphthalene series phthalic anhydride influence, the decline of the phthalic anhydride industry is limited; Operators participate in the market cautiously, basically just need to take goods, and chase high risk awareness; Enter July, for the phthalic anhydride industry is still in the traditional off-season, just need to maintain the situation. Industrial naphthalene industry supply is low, the price will remain firm, naphthalene series phthalic anhydride save some support, but the demand is weak to suppress the state of mind, it is expected that the short term weak shock.

Factory stoppages in China

In may, domestic phthalic anhydride factory operating rate rose slightly.

China's PA export trend in 2019-2020

According to customs statistics, China exported 653 tons of phthalic anhydride in May 2020, and the average export price was US $653.596 / ton. China imported 9636.363 tons of phthalic anhydride in May 2020, and the average import price was US $568.283 / ton.

Note: the general administration of customs will no longer separately release the import and export data of January and February in 2020, but will merge the data in March and release the data to the public in January and February. The total amount will be divided equally.

Summary and views

June domestic phthalic anhydride market to negative trend end, trading atmosphere light. In July, for the development of products, in accordance with the old is the traditional off-season period, limited terminal PVC soft products industry production and marketing situation continues, future demand for phthalic anhydride, phthalic anhydride industry spot supply level is not high, whether adjacent benzene anhydride or naphthalene method of benzene anhydride manufacturer is no inventory pressure, and even the early stage of the delivery order, based on the negative inventory parts, less cargo situation is expected to continue. Less industrial naphthalene leads to high prices, naphthalene series phthalic anhydride is in a serious deficit situation, so the decline of the phthalic anhydride market has some restraint, it is expected that although the phthalic anhydride industry is not free of certain profit, but the basic narrow operation, just need to be normalized.