Costs Decline as September DOP Prices Fluctuate and Fall

October 1st news[1][2][3][4][5][6][7][8][9]

In September, the price of plasticizer DOP fluctuated and fell.[1]

According to the commodity market analysis system, as of September 30, the DOP price was 7,367.50 CNY/ton, down from 7,589.17 CNY/ton on September 1, with a price decrease of 2.92%[1]. In September, the DOP price fluctuated and fell, with DOP companies' operating load stabilizing and the operating rate slightly decreasing, leading to a minor reduction in DOP supply; the raw material 2-ethylhexanol price fluctuated and fell, while the phthalic anhydride price remained weakly stable, causing a decline in DOP costs and increasing the pressure for DOP prices to fall; the golden September lacked luster, downstream demand was difficult to improve, and the interest in DOP purchase inquiries was lukewarm, resulting in weak DOP demand transactions. With declining costs and both supply and demand being weak, the plasticizer price fluctuated and fell in September[1].

In September, the price of the raw material 2-ethylhexanol fluctuated and declined.[1][2][3][4][5]

According to the commodity market analysis system, as of September 30, the price of 2-ethylhexanol was 6,666.67 CNY per ton, a fluctuating decline of 7.62% from the price of 7,216.67 CNY per ton on September 1[3]. In September, the production facilities of 2-ethylhexanol companies in China were stably operating at high levels, with the operating rate of 2-ethylhexanol equipment remaining steadily high at 96%. With new capacities for 2-ethylhexanol added, the supply of 2-ethylhexanol increased; during September, the price of 2-ethylhexanol showed a fluctuating decline, leading to a drop in the cost of plasticizers and thus increasing the pressure for DOP prices to fall.[3][7]

September raw material phthalic anhydride prices are weakly stabilizing[1]

According to the commodity market analysis system, as of September 30, the quoted price for ortho-phthalic anhydride (OPA) was 6,293.33 CNY per ton, marking a slight decrease from the September 1 price of 6,300 CNY per ton—down by 0.11%. Meanwhile, while o-xylene prices rose in September, industrial naphthalene prices remained volatile but gradually stabilized. Despite this, cost support for phthalic anhydride continued to hold firm. In September, phthalic anhydride production facility utilization rates slowly increased, leading to a modest rise in plant operating rates among manufacturers. Consequently, phthalic anhydride supply expanded, while plasticizer costs began to decline. However, this trend put additional downward pressure on the price of DOP plasticizers in September.

Future Market Outlook

The analyst of plasticizer products believes that in terms of cost, the price of 2-ethylhexanol has been fluctuating and declining, while the price of phthalic anhydride remains weakly stable, which reduces the downward pressure on the cost of DOP plasticizers; in terms of supply, the operating rate of plasticizer enterprises has slightly decreased, leading to a reduction in the production and supply of plasticizers; in terms of demand, the golden September did not meet expectations, with the overall economy being sluggish, and due to factors such as anti-internal competition and the elimination of outdated capacities, downstream demand is weak. For the future, with both supply and demand being weak and the weakening of cost support, it is expected that the price of DOP plasticizers will continue to fluctuate and decline.[3]