Chinese Phthalic Anhydride Market Inched Down This Week

O-Xylene Market Review: The Chinese o-xylene market moved down this week. Up to June 21, the closing prices for o-xylene in East China were RMB 6,550/mt, down RMB 50/mt or 0.76% week on week. Influenced by the environmental protection supervision and traditional off-season, the overall operating rate in phthalic anhydride market was not high, which couldn’t support the o-xylene market.   

Crude Naphthalene Market Review: The overall trading sentiments improved in the crude naphthalene market. In the major producing area, naphthalene market prices showed a stable-to-increasing trend. Auction prices for the naphthalene in Shanxi were in the range of RMB 4,730-4,910/mt. Prices for solid naphthalene were slightly lower. In Shandong, some auction prices were in the range of RMB 5,053-5,126/mt. In Shandong and Hebei, some offers were in the range of RMB 5,200-5,300/mt, and dealing prices were in the range of RMB 5,050-5,100/mt. In the short term, the naphthalene market will move marginally as the demand will continue to be weak.  

Phthalic Anhydride Market Review: The Chinese phthalic anhydride market moved marginally this week. Up to June 21, closing prices for phthalic anhydride (o-xylene method) in East China were RMB 7,050/mt, down RMB 100/mt or 1.40% week on week. Closing prices for phthalic anhydride (naphthalene method) were RMB 6,500/mt, down RMB 100/mt or 1.52% week on week. The overall operating rate was weak on the environmental protection supervision and traditional off-season. Considering the poor sales, phthalic anhydride producers cut down prices to promote sales.