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

What's hot and trending this month

1) In August, the initial market drop, the end of the rally;

2) Phthalic anhydride maintained profit situation in August;

3) The August naphthalene method showed obvious loss of phthalic anhydride;

This month's market summary

This month, the domestic phthalic anhydride market at the beginning of a small drop, the end of therally, in order to settle the trend, trading atmosphere cold. No substantial improvement in the enddemand, downstream plasticizer shock operation, to maintain the rigid demand for phthalic anhydride.In the face of poor new orders, blocked shipments, the industry is also under pressure, and the trendof o-benzene deadlock within the month, industrial naphthalene trend down mainly, leading tonaphthalene method phthalic anhydride low still exist, leading to phthalic anhydride low increase, but the phthalic anhydride industry spot supply level is not high, so the market trend tends to slow. At theend of the month, industrial naphthalene price stability in the strong, coupled with some improvedtrading conditions, led to the merchants price sentiment, so the market focus rose. In the industrialnaphthalene price overall low, naphthalene series phthalic anhydride loss is still, and naphthaleneseries phthalic anhydride serious loss is opposite, phthalic anhydride industry to maintain profitsituation.

Next month market

The spot supply level of the phthalic anhydride industry is low, the shutdown and maintenancesituation is mostly, some manufacturers are in the state of negative inventory, it is expected that thesituation of the shortage of phthalic anhydride goods will continue to some extent, the marketsupport remains; Demand has not improved substantially, but needs to be maintained. Although it isabout to enter the Golden Ninth Season, the traditional peak season, the demand has been expectedto improve, but due to the impact of the epidemic this year, the expectation of demand improvementis insufficient and the room for improvement is limited. The raw material phthalic acid is stable, so thephthalic anhydride industry is still profitable. The price of industrial naphthalene is slightly lower, theloss of naphthalene series phthalic anhydride is old, affected by industrial naphthalene andnaphthalene series phthalic anhydride, the cost support remains; The end of the broad increase inphthalic anhydride, operators on the market significantly increased attention, but the pursuit ofcaution still remain; September is the traditional peak season for the phthalic anhydride industry, andthe demand is expected to be positive. However, due to the impact of the epidemic this year, theexpectation for improvement in demand is insufficient and the room for increase in demand is limited, so the situation is expected to be maintained. Industrial naphthalene is still expected to be stable, naphthalene series phthalic anhydride save some support, is expected to be stable in the short termup.

Factory stoppages in China

In August, domestic production of phthalic anhydride plants decreased compared with July, and isexpected to increase in September.

China's PA export trend in 2019-2020

According to customs statistics, China exported 442.05 tons of phthalic anhydride in June 2020, andthe average export price was USD 680.373 / ton. China imported 14383.401 tons of phthalicanhydride in June 2020, with an average import price of US $773.923 / ton. Note: the general administration of customs will no longer separately release the import and exportdata of January and February in 2020, but will merge the data in March and release the data to thepublic in January and February. The total amount will be divided equally.

Summary and views

August domestic phthalic anhydride market to end the rally, trading atmosphere is light. In September, for the development of products, into the traditional peak season, demand has certain positiveexpectations, but affected by the outbreak of this year, the demand to improve the expected limitedspace for phthalic anhydride demand just to be in the majority, but mostly in the benzene anhydrideindustry breakdown maintenance situation of spot supply level is not high, whether adjacent benzeneanhydride or naphthalene method of benzene anhydride manufacturer is no inventory pressure, andeven the early stage of the delivery order, based on the negative inventory parts, goods less bureau isexpected to face continued; The industrial naphthalene price is steadily strengthening, naphthaleneseries phthalic anhydride is still in the deficit situation, so the cost support remains, is expected tostart the month of phthalic anhydride trend in the steady upward, enquiries and procurement situationhas improved.