Costs Fall as Phthalic Anhydride Prices Stop Declining and Begin to Rebound

August 22, News

This week, phthalic anhydride prices in China have stopped falling and rebounded.

According to the commodity market analysis system, as of August 22, the price of ortho-phthalic anhydride in China was 6250 CNY/ton, a 0.79% decrease from the price of 6300 CNY/ton on August 15. This week, the price of ortho-xylene has been fluctuating downward, while the price of industrial naphthalene has stabilized. The cost support for phthalic anhydride still exists. This week, the operating load of phthalic anhydride equipment increased, and the operating rate of phthalic anhydride enterprises stabilized, ensuring a sufficient supply of phthalic anhydride. However, the downstream plasticizer market has been fluctuating downward, and the operating load of plasticizer enterprises has decreased, leading to a weakening in the demand for phthalic anhydride. With an increase in supply and a decrease in demand, coupled with a reduction in costs, the price of phthalic anhydride has been fluctuating downward this week.

Phthalic anhydride costs decrease with ample supply in China

As of August 15, Sinopec's o-xylene quote stood at 6,300 CNY/ton, down from last weekend's price of 6,400 CNY/ton—a drop of 1.56%. Meanwhile, industrial naphthalene prices remained stable, while o-xylene prices continued to decline. With benzene anhydride costs falling, downward pressure on benzene anhydride prices persists. Consequently, benzene anhydride prices softened further, with naphthalene-based benzene anhydride quoted at 5,900–6,100 CNY/ton, and naphthalene-based benzene anhydride priced at 6,100–6,300 CNY/ton.

This week, benzene anhydride production facilities resumed operations at higher capacity levels, leading to increased operating rates among benzene anhydride manufacturers and ensuring a robust supply of the product.

Demand Side: Downstream Plant Starts Decline, Driving DOP Prices to Fluctuate and Fall

According to the commodity market analysis system, as of August 22, the DOP price was 7,734.16 CNY/ton, a slight decrease from 7,759.16 CNY/ton on August 15, with a price decrease of 0.32%. This week, the operating load of DOP enterprises in China decreased, leading to a reduction in DOP production. The demand for phthalic anhydride also declined, weakening the support for its price increase.

Future Market Prediction

Phthalic anhydride product data analysts believe that, in terms of demand, the operating rates of plasticizer enterprises in China have decreased, leading to a reduction in plasticizer production and a decrease in phthalic anhydride demand. On the supply side, the operating load of phthalic anhydride equipment in Chinese enterprises has increased, resulting in higher phthalic anhydride supply. In terms of costs, the price of ortho-xylene has decreased, leading to a reduction in the cost of phthalic anhydride. Looking ahead, with increased phthalic anhydride supply and decreased demand, coupled with lower costs, it is expected that the price of phthalic anhydride will remain at a low level and consolidate.