Weak Demand and Rising Costs Lead to Expectations of Phthalic Anhydride Price Rebound in China

September 08, News

September phthalic anhydride market fluctuates and declines in China

According to the commodity market analysis system, as of September 8, the price of ortho-phthalic anhydride in China was 6133.33 CNY/ton, a 2.65% decrease from the price of 6300 CNY/ton on September 1. In September, the price of ortho-xylene rebounded and increased, while the price of industrial naphthalene stabilized, leading to greater cost support for phthalic anhydride. The operating load of phthalic anhydride equipment in China stabilized, with an operating rate of 60% for phthalic anhydride enterprises, ensuring stable supply. The downstream plasticizer market showed signs of stabilization, with high operating loads for plasticizer production equipment, but the demand support for phthalic anhydride remained limited. Due to the limited demand support, the price of phthalic anhydride in China fluctuated and decreased in September.

Phthalic anhydride costs in China have risen.

On September 8, Sinopec's ortho-xylene price was 6,400 CNY/ton, an increase of 1.59% from the early September price of 6,300 CNY/ton. The industrial naphthalene price has stabilized, while the ortho-xylene price has risen, leading to an increase in phthalic anhydride production costs. In September, the operating load of phthalic anhydride equipment remained stable, with a 60% operating rate for phthalic anhydride enterprises, ensuring a stable supply of phthalic anhydride.

Demand Side: Downstream Operations Remain Stable as DOP Prices Fluctuate and Decline

According to the commodity market analysis system, as of September 8, the DOP price was 7517.50 CNY/ton, a fluctuating decline from the DOP price of 7589.17 CNY/ton on September 1, with a price decrease of 0.94%. With the reduction in costs, the downward pressure on DOP has increased; in September, the operating load of DOP enterprises in China has stabilized, and the demand for phthalic anhydride has remained steady, with weak support for the increase in phthalic anhydride prices.

Future Market Forecast

Phthalic anhydride product data analysts believe that, in terms of demand, the operation of plasticizer enterprises in China has stabilized, and the production of plasticizers is stable, leading to relatively weak support for phthalic anhydride demand. In terms of costs, the price of ortho-xylene has rebounded and increased, while the price of industrial naphthalene has stabilized after fluctuating, causing an increase in the cost of phthalic anhydride. For the future, with the rise in the cost of phthalic anhydride, it is expected that the price of phthalic anhydride will rebound and increase.