Cost support increases, DOP prices rise then fall this week in China

November 7th, according to reports

This week, the price of plasticizer DOP in China first increased and then decreased.

According to the commodity market analysis system, as of November 7th, the DOP price was 7025.83 CNY/ton, an increase of 0.24% from the DOP price of 7009.16 CNY/ton on November 1st. This week, the operating load of DOP enterprises in China increased, leading to an increase in DOP production; the raw material, 2-ethylhexanol, showed a fluctuating increase, while phthalic anhydride prices weakened and fell. The cost of DOP increased, reducing the pressure for DOP costs to fall and increasing the support for a rise. With greater cost support and increased supply, the plasticizer prices in China first rose and then fell this week.

This week, the price of 2-ethylhexanol, a raw material, fluctuated and increased in China.

According to the commodity market analysis system, as of November 7, the price of 2-ethylhexanol was 6,033.33 CNY/ton, an increase of 1.40% from the price of 5,950 CNY/ton on November 1. Some companies are conducting maintenance on their 2-ethylhexanol production equipment, leading to a significant decrease in the operating load of 2-ethylhexanol facilities. The operating rate of 2-ethylhexanol is at 70%, resulting in a decrease in supply. The price of propylene has fallen, reducing the cost of 2-ethylhexanol. This week, with the decrease in 2-ethylhexanol supply and the reduction in costs, the price of 2-ethylhexanol has risen. The cost of plasticizers has increased, weakening the downward pressure on DOP and increasing support for its rise.

This week, the price of phthalic anhydride, a raw material, fluctuated and declined in China.

According to the commodity market analysis system, as of November 7, the price of ortho-phthalic anhydride was 5926.67 CNY/ton, a slight decrease from the price of 5950 CNY/ton on November 1, with a price decrease of 0.39%. The downward trend of phthalic anhydride continues, with a small fluctuation and decline in the price of phthalic anhydride in November. The price of ortho-xylene has also been fluctuating downward, leading to a reduction in costs. The operating rate of phthalic anhydride enterprises remains stable, and the supply of phthalic anhydride is adequate. The equipment operating load of downstream enterprises has increased, providing continued support for the demand for phthalic anhydride. Due to the decrease in costs and the support of demand, the price of phthalic anhydride has been fluctuating downward this week. As the price of phthalic anhydride decreases, the cost of plasticizers also decreases, and there is still pressure for the plasticizer DOP to fall this week.

Future Market Expectations

Plasticizer product data analysts believe that in terms of costs, the price of 2-ethylhexanol has been fluctuating and rising, while the price of phthalic anhydride has been fluctuating and falling, leading to a weakening in the downward pressure on the cost of plasticizer DOP and an increase in support for price hikes. In terms of supply, the operating rates of plasticizer enterprises in China have slightly increased, resulting in an increase in the production and supply of plasticizers. Regarding demand, the overall economy is sluggish, and due to anti-competition within the industry and the elimination of outdated capacity, downstream weak demand persists. Looking ahead, with increased supply and weak demand, coupled with rising costs, it is expected that the price of plasticizer DOP will remain weak and stable.