October DOP Prices Plunge to New Lows for the Year in China

October 31 News

In October, the price of plasticizer DOP in China experienced a significant fluctuation and decline.

According to the commodity market analysis system, as of October 31, the DOP price was 7,009.16 CNY/ton, a significant drop from the DOP price of 7,367.50 CNY/ton on October 1, falling to the lowest price since October 2020; the DOP price has been declining for four consecutive months, with a 4.86% decrease in October, marking the largest monthly decrease of the year in China.

According to the commodity market analysis system, in October, the operating load of DOP enterprises in China was less than 60%, with a decrease in the operating rate, leading to a reduction in DOP production and supply. The prices of raw materials such as 2-ethylhexanol and phthalic anhydride significantly dropped, reducing the cost of DOP and increasing the downward pressure on DOP prices. In October, the operating rate of DOP enterprises decreased, resulting in lower DOP production and supply. Downstream demand remained weak, with sluggish DOP transaction volumes. Due to the decline in costs and the dual weakness in supply and demand, the price of plasticizers in October experienced a fluctuating decline.

Raw Material Isooctanol Prices Fluctuate and Decline

According to the commodity market analysis system, as of October 31, the price of 2-ethylhexanol was 5,950 CNY per ton, a decline from the price of 6,666.67 CNY per ton on October 1, marking the lowest price since May 2020. The price of 2-ethylhexanol has fallen for four consecutive months, with a 10.75% decrease in October, the largest decline of the year. As the price of 2-ethylhexanol falls, the cost of plasticizers decreases, increasing the downward pressure on DOP prices.

Raw Material Phthalic Anhydride Prices Fluctuate and Decline

According to the commodity market analysis system, as of October 31, the price of o-phthalic anhydride (APA) was 5950 CNY/ton, a fluctuating decline from the price of 6293.33 CNY/ton on October 1, reaching a new low for APA prices since March 2021. The price of APA has been falling for 7 consecutive months, with a significant drop of 5.46% in October, marking the largest monthly price decrease of the year. The substantial decline in APA prices has led to a decrease in the cost of plasticizers, increasing the pressure for a price drop in dioctyl phthalate (DOP).

Future Market Expectations

The plasticizer product data analyst notes that, in terms of costs, raw materials such as di-octyl phthalate (DOP) alcohol and phthalic anhydride have seen significant price declines, reaching new lows not seen in recent years. As a result, the cost of DOP has dropped sharply, putting further downward pressure on its price. On the supply side, plasticizer manufacturers’ operating rates saw a slight rebound in late October, suggesting an increase in future supply. Meanwhile, DOP prices remain at historically low levels, meaning both downward pressure and sellers' willingness to cut prices are relatively limited.

From a demand perspective, the traditionally strong "Golden September and Silver October" period failed to deliver robust activity, with weak downstream demand persisting. Overall, this situation indicates that DOP faces limited room for further price declines and lacks sufficient upward momentum. Therefore, analysts expect DOP prices to stabilize at their current low levels in the near term.