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

What's hot and trending this month

1) The overall trend of the market rose in September and stabilized at the end of the month;

2) Phthalic anhydride maintained profit situation in September;

3) September naphthalene phthalic anhydride loss is still temporary profit;

This month's market summary

This month, the domestic market of phthalic anhydride stability small move, early raw materialsurface industrial naphthalene trend up, drive naphthalene method phthalic anhydride center ofgravity rebound, lower prices, so for naphthalene method of phthalic anhydride, cost support hasbeen strengthened. O-xylene is in stable operation, so the rise of o-phthalic anhydride is mainlydriven by the influence of naphthalene phthalic anhydride, but there is no substantial improvement in downstream demand at the early stage, so the market fluctuation is narrow. In the second half of theyear, manufacturers began to focus on pre-holiday preparations, so the market trading atmosphereimproved significantly, manufacturers basically no inventory pressure, maintenance price sentimentstill exists. Near the end of the month, terminal manufacturers before the end of the holiday stockingdemand near the end, coupled with the industrial naphthalene lower center of gravity, so the phthalicanhydride slightly soft, after the steady finishing wa-see.

Next month market forecast

The spot supply level of the phthalic anhydride industry is low, in the month of naphthalene methodphthalic anhydride manufacturers maintenance is mostly, in addition to the late holiday beforestocking up, some manufacturers basically have no inventory, in October maintenance of themanufacturers based on the restart, the industry supply level may have a certain degree ofimprovement, but in the early restart of pre-counted phthalic anhydride less situation temporarilycontinued, the market support remains; Although the silver Tenth season is about to enter, thetraditional peak season, the demand has been expected to improve, but due to the impact of theepidemic this year, the expectation of demand improvement is insufficient, and the room forimprovement is limited. Stable raw material o-benzene, Sinopec east China listed to maintain 4400CNY/ton, phthalic anhydride industry profit is still rich. The price of industrial naphthalene is slightlylower, naphthalene series phthalic anhydride within the profit, but the basic profit, affected byindustrial naphthalene and naphthalene series phthalic anhydride, cost support still exists; End of thestable end of the phthalic anhydride, the industry is more cautious and cautious, close attention tothe trend of industrial naphthalene; As October enters the traditional peak season for the phthalic anhydride industry, there is a well-targeted expectation for demand. However, due to the impact ofthe epidemic this year, expectations for demand improvement are insufficient, and the space forimprovement is limited. October maintenance equipment normal operation, the industry supply levelwill have to improve, and industrial naphthalene is expected to rise steadily, good cost benefit forphthalic anhydride market trend is expected to be stable and firm.

Factory stoppages in China

In September, domestic phthalic anhydride plant operating rate is basically the same as August.

China's PA export trend in 2019-2020

According to customs statistics, China exported 1,792 tons of phthalic anhydride in August 2020, andthe average export price was US $644.313 / ton. China imported 4889.813 tons of phthalic anhydridein August 2020, with an average import price of US $598.962 / 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 thepublic in January and February. The total amount will be divided equally.

Summary and views

September domestic phthalic anhydride market to stabilize the end of the trading atmosphere is light. Demand side, in October, for the development of products, is still the traditional peak season, demand has certain positive expectations, but affected by the outbreak of this year, the demand toimprove the space is limited, just need to demand for phthalic anhydride, or have a short-term needimproving, the supply side, October the domestic basic have restart benzene anhydride manufacturermaintenance device, device reset initial production has no obvious increase, coupled with the firststock in September, most manufacturers have no basic inventory accumulation, therefore, hascontinued short-term stock situation or less; In terms of raw materials, industrial naphthalene price isexpected to be stable and strong, naphthalene series phthalic anhydride has a short profit, but theoverall situation is still in the deficit, so the cost support remains, is expected to start the month ofphthalic anhydride trend is stable and firm, enquiries and procurement have improved.