Costs Fall, Supply Stabilizes: September DOP Prices Fluctuate and Decline

September 8, News

In September, the price of plasticizer DOP in China fluctuated and fell.

According to the commodity market analysis system, as of September 8, the DOP price was 7517.50 CNY/ton, a fluctuating decrease from the DOP price of 7589.17 CNY/ton on September 1, with a price decrease of 0.94%. The prices of raw materials, such as 2-ethylhexanol and phthalic anhydride, have fluctuated downward, leading to a reduction in DOP production costs and increasing the downward pressure on DOP prices. In September, the operating load of DOP enterprises in China stabilized, ensuring an adequate supply of DOP. However, downstream demand remains difficult to improve, with only moderate interest in DOP procurement inquiries, resulting in limited improvement in DOP transaction volumes. With increased supply and decreased costs, the prices of plasticizers have fluctuated downward.

September raw material isooctanol prices fluctuated and fell in China

According to the commodity market analysis system, as of September 8, the price of 2-ethylhexanol was 7,283.33 CNY/ton, a fluctuating decline from the price of 7,533.33 CNY/ton on August 1, with a price decrease of 3.32%. In September, the operating rates of 2-ethylhexanol production facilities in China remained high and stable, with an equipment utilization rate of 95%, and the addition of new 2-ethylhexanol production capacity led to an increase in supply. The operating loads of downstream plasticizer enterprises remained stable, providing limited support for the demand for 2-ethylhexanol. With increased supply and limited demand support, the price of 2-ethylhexanol in September fluctuated downward. The cost of plasticizers decreased, increasing the pressure for DOP prices to fall.

September raw material phthalic anhydride prices fluctuated and fell in China.

According to the commodity market analysis system, as of September 8, the price of o-xylene phthalic anhydride in China was 6133.33 CNY/ton, a fluctuating decrease from the September 1 price of 6300 CNY/ton, with a price decrease of 2.65%. In September, the price of ortho-xylene rebounded and increased, while the price of industrial naphthalene stabilized, increasing the cost support for phthalic anhydride. The operating load of phthalic anhydride equipment in China stabilized, with a 60% operating rate for phthalic anhydride enterprises, ensuring stable supply. The operating load of downstream plasticizer enterprises' equipment remained steady, but the demand support for phthalic anhydride was limited. It is expected that the price of phthalic anhydride will rebound and increase, stabilizing the cost of plasticizers, thereby reducing the downward pressure on the price of DOP plasticizer.

Future Market Expectations

Plasticizer product data analysts believe that in terms of costs, the price of 2-ethylhexanol has fluctuated and declined, while the price of phthalic anhydride has rebounded and increased. The cost pressure on plasticizer DOP remains downward. In terms of supply, the operating rates of plasticizer enterprises have stabilized, and the production of plasticizers is stable, ensuring a sufficient supply of plasticizers. In terms of demand, the overall economy is sluggish, and due to anti-competition within China and the elimination of outdated capacities, downstream demand is weak. Looking ahead, with strong supply and weak demand, along with continued downward cost pressure, it is expected that the price of plasticizer DOP will continue to fluctuate and decline.