Supply Reduction, Rising Costs, DOP Price Increase

December 5th, News

Plasticizer DOP prices fluctuated and increased in China.

According to the commodity market analysis system, as of December 5th, the DOP price was 7,209.16 CNY/ton, an increase of 2.12% from the DOP price of 7,059.16 CNY/ton on December 1st. The cost of DOP has risen, leading to a decrease in the operating load of DOP plasticizer enterprises in China, with the operating rate dropping to 64%. This has resulted in a decline in DOP production. The price of 2-ethylhexanol has significantly increased, further driving up the cost of DOP. With the significant rise in DOP costs and the reduction in supply, the price of the plasticizer has fluctuated and increased.

Plasticizer DOP manufacturers in China have reduced their production

This week, the number of DOP manufacturers undergoing maintenance in China increased, leading to a decrease in the operating load of DOP manufacturers. The operating rate dropped to 64%, and DOP production fell to 28,000 tons. Production decreased by 2,000 tons compared to last week. With the decline in DOP production, the supply of DOP also decreased, increasing the upward pressure on DOP prices.

The price of the raw material 2-ethylhexanol has significantly increased in China.

According to the commodity market analysis system, as of December 5th, the price of 2-ethylhexanol was 7066.67 CNY/ton, a significant increase from 6650 CNY/ton on December 1st, with a price increase of 6.27%. Some companies' 2-ethylhexanol equipment is under maintenance, and the operating load of 2-ethylhexanol production facilities has decreased, with the operating rate dropping to 70%. This has led to a tightening of 2-ethylhexanol supply. The strong consolidation of propylene prices means that cost support for 2-ethylhexanol still exists. With the reduction in 2-ethylhexanol supply and the continued cost support, the upward pressure on 2-ethylhexanol prices has increased. As 2-ethylhexanol prices rise, the cost of plasticizers also increases, leading to greater support for DOP prices despite the existing downward pressure.

Future Market Expectation

Plasticizer product data analysts believe that in terms of cost, the significant rise in 2-ethylhexanol prices has increased the cost support for plasticizer DOP; in terms of supply, the operating rate of plasticizer enterprises in China has slightly decreased, leading to a reduction in plasticizer production and a tightening of plasticizer supply. Looking ahead, with rising costs and limited demand due to supply constraints, it is expected that the price of plasticizer DOP will remain strong and stable.