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

What's hot and trending this month

1) In October, the phthalic anhydride market went up sharply, up to USD150/MT;

2) O-phthalic anhydride and naphthalene phthalic anhydride have a large profit margin in October, especially o-phthalic anhydride;

This month's market summary

After the return of the National Day, the domestic phthalic anhydride market due to the related products industry naphthalene, plasticizer has risen, and after the festival, the downstream supplement more, together with their own low supply, prices went up with the wind. But soon the downstream DOP weakened due to octyl alcohol decline, industrial naphthalene high peak, phthalic anhydride field wind change, sing empty sound appeared. But surprisingly, the adjacent law is unexpectedly high due to tight goods, and the rapid rise, at the same time naphthalene method sealed, or tempted to follow, but did not rise with the adjacent law. Throughout the game, in addition to goods tight support, the other positive factors are not clear, although the rumors of o-benzene increase more and more intense, but sinopec did not fall, together with the fall of industrial naphthalene prices, crude oil wide fall, although the main downstream plasticizer trend is stronger, but the high price of phthalic anhydride digestion is not easy. In general, under the restriction of various factors, it is difficult to continue to go up, but under the tight support of goods, the downward range is also limited.

Next month market forecast

The phthalic anhydride industry spot supply level is low, within the month Xingtai Xuyang and Nanjing Trinity anhydride device overhaul, together with the downstream after the holiday inventory replenishment mood, good to the phthalic anhydride. Downstream plasticizer and resin industry trend upward, to the phthalic anhydride just can be, but the high price is not easy to digest. Raw material o-benzene rising rumors, but sinopec price adjustment did not fall, industrial naphthalene peak back down, the overall cost of weakening. At present, international crude oil closed wide down, to the phthalic anhydride indirect bearish. Expected after the market trend of benzene anhydride high shock.

Factory stoppages in China

In October, domestic phthalic anhydride plant operating rate of about 64%.

China's PA export trend in 2019-2020

According to customs statistics, in September 2020, China exported 1,628 tons of phthalic anhydride, and the average export price was US $661.2641 / ton. In September 2020, China imported 1,909.68 tons of phthalic anhydride and the average import price was US $638.5 / 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

October domestic phthalic anhydride market went up strongly, trading atmosphere is good. At present, the field is still tight goods is good, but the o-benzene rise did not fall, the industrial naphthalene peak fall, the downstream plasticizer and resin industry in the raw materials driven by prices, but the high price of raw materials is not easy to digest, it is expected that the next period of high vibration of phthalic anhydride.