Costs Decrease, Phthalic Anhydride Prices Fluctuate and Fall in China

August 15th News

This week, the phthalic anhydride market in China fluctuated and declined.

According to the commodity market analysis system, as of August 15, the price of o-phthalic anhydride in China was 6,300 CNY per ton, a 3.82% decrease from the price of 6,550 CNY per ton on August 8. This week, the price of ortho-xylene has been fluctuating and declining, and the price of industrial naphthalene has also been falling, leading to a reduction in the cost of phthalic anhydride. The pressure for the price of phthalic anhydride to fall has increased. This week, the operating load of phthalic anhydride equipment has decreased, and the operating rate of phthalic anhydride enterprises has slightly decreased by 3%, resulting in a reduction in the supply of phthalic anhydride. The market for downstream plasticizers has been fluctuating and declining, but the operating load of plasticizer enterprises has increased, leading to greater support for the demand for phthalic anhydride. With reduced supply, recovering demand, and lower costs, the price of phthalic anhydride has been fluctuating and declining this week.

Phthalic anhydride costs decrease with ample supply in China

As of August 15, Sinopec's orthoxylene (o-xylene) quotation was 6,400 CNY/ton, down from 6,600 CNY/ton last weekend, representing a price decrease of 3.03%. Industrial naphthalene prices have been fluctuating downward, and with the decline in o-xylene prices and reduced phthalic anhydride (PA) costs, downward pressure on PA prices has increased. Currently, PA prices are quoted at 6,100-6,200 CNY/ton for naphthalene-based PA and 6,200-6,400 CNY/ton for benzene-based PA. In August, PA equipment operating rates declined, causing PA enterprises' utilization rates to drop to 60%, resulting in reduced PA supply.

Demand Side: Downstream production starts decline, DOP prices fluctuate and fall.

According to the commodity market analysis system, as of August 15, the DOP price was 7,759.16 CNY/ton, a decrease of 0.96% from the DOP price of 7,834.16 CNY/ton on August 8. This week, most of the previously shut-down DOP production facilities in China have resumed normal operations, with DOP production running at a high and stable level. The high operating rate of DOP production this week has ensured ample plasticizer output, while the demand for phthalic anhydride has improved, leading to increased support for higher phthalic anhydride prices.

Future Market Forecast

Phthalic anhydride product data analysts believe that in terms of demand, plasticizer enterprises in China are operating at high and stable levels, with increased production of plasticizers leading to a recovery in phthalic anhydride demand. On the supply side, the operating load of phthalic anhydride equipment in China has decreased, resulting in a reduction in phthalic anhydride supply. In terms of cost, the price of ortho-xylene has decreased, leading to a decrease in the cost of phthalic anhydride. Looking ahead, with the reduction in phthalic anhydride supply and the recovery in demand, coupled with the decrease in costs, it is expected that the price of phthalic anhydride will fluctuate downward.