Costs Decline, Production Starts to Rise—Phthalic Anhydride Prices Fluctuate and Fall in November

November 30th News

November phthalic anhydride prices in China experienced a fluctuating decline.

According to the commodity market analysis system, as of November 30, the price of ortho-phthalic anhydride in China was 5766.67 CNY/ton, a fluctuating decrease from 5950 CNY/ton on November 1, with a price decrease of 3.08%. In November, the downward trend of ortho-phthalic anhydride continued, with its price fluctuating and decreasing. The price of the raw material, ortho-xylene, decreased, leading to a reduction in costs. The operating rate of ortho-phthalic anhydride enterprises slowly increased, resulting in sufficient supply. The operating load of downstream DOP enterprises slightly increased, maintaining some support for the demand for ortho-phthalic anhydride. With the decrease in costs and the increase in operations, the pressure on the price of ortho-phthalic anhydride to fall intensified, leading to a fluctuating decrease in its price in November.

Phthalic anhydride costs decrease and supply increases in China.

On November 30, Sinopec's ortho-xylene quotation was 5800 CNY/ton, a decrease of 300 CNY/ton from the price of 6100 CNY/ton on November 1, a price decrease of 4.92%. The decline in ortho-xylene prices has led to a reduction in phthalic anhydride production costs. Additionally, in November, the operating load of phthalic anhydride equipment in China increased to 70%, leading to an increase in phthalic anhydride supply. With the increase in supply and the reduction in costs, there is still pressure for phthalic anhydride prices to fall.

Demand Side: DOP Prices in November First Declined and Then Rose

According to the commodity market analysis system, as of November 30, the DOP price was 7,009.16 CNY/ton, which first decreased and then increased from the DOP price of 7,009.16 CNY/ton on November 1. Compared to the DOP price of 6,950.83 CNY/ton on November 17, it increased by 2.31%. In mid-to-late November, the cost of DOP in China rose, and the DOP price stopped falling and started to rise. The operating load of DOP plasticizer enterprises in China increased slightly in November, leading to an increase in DOP production. The demand for phthalic anhydride remained, and the downward pressure on phthalic anhydride prices weakened.

Future Market Forecast

Phthalic anhydride product data analysts believe that in terms of demand, the production load of DOP equipment in plasticizer enterprises in China has increased, leading to an increase in plasticizer output, thus increasing the demand for phthalic anhydride. In terms of cost, the price of ortho-xylene has fallen, reducing raw material costs, and thereby decreasing the cost of phthalic anhydride. Looking ahead, with the decrease in the cost of phthalic anhydride and an increase in its production, coupled with continued demand support, it is expected that the price of phthalic anhydride will weaken and fall.