Costs Decline, DOP Prices Retreat from High Levels This Week

December 12th, news

This week, the price of plasticizer DOP in China fluctuated and declined.

According to the commodity market analysis system, as of December 12, the DOP price was 7,150 CNY/ton, a decrease of 0.82% from 7,209.16 CNY/ton on December 5. The price of 2-ethylhexanol fluctuated downward, leading to a decrease in DOP production costs; the operating load of plasticizer DOP enterprises in China decreased, with the operating rate dropping to 62%, resulting in a reduction in DOP output. With the decrease in DOP production costs and the reduction in supply, the price of plasticizers has fallen from its high levels.

Plasticizer DOP manufacturers in China have reduced their production.

This week, more DOP manufacturers in China underwent maintenance, leading to a decrease in the operating load of DOP manufacturers. The operating rate dropped to 62%. This week, the DOP production was 28,000 tons, which remained stable compared to last week but decreased from the previous month. As DOP production declined, the supply of DOP also decreased, and the momentum for DOP price increases weakened.

The price of the raw material 2-ethylhexanol fluctuated and fell in China.

According to the commodity market analysis system, as of December 12, the price of 2-ethylhexanol was 7033.33 CNY/ton, a decrease of 0.47% from the high of 7066.67 CNY/ton on December 5. This week, maintenance of 2-ethylhexanol production equipment in Chinese companies decreased, and the operating load of 2-ethylhexanol plants slightly increased, with the operating rate rising to 75%. The supply of 2-ethylhexanol is abundant; the strong rise in propylene prices provides significant cost support for 2-ethylhexanol. With ample supply and cost support, there is still potential for 2-ethylhexanol prices to rise. The fluctuating decline in 2-ethylhexanol prices has led to a decrease in plasticizer costs, and the pressure for DOP to fall remains, with weakened support for increases.

Future Market Expectation

Plasticizer product data analysts believe that, in terms of cost, the price of 2-ethylhexanol has fallen from its peak, weakening the cost support for plasticizer DOP; in terms of supply, the operating rates of plasticizer enterprises in China are weak but stable, with stable plasticizer production and ample supply. Looking ahead, with costs decreasing and ample supply coupled with limited demand, it is expected that the price of plasticizer DOP will remain weak and consolidate.