Cost Reduction, Weak Demand: December Phthalic Anhydride Prices Fluctuate and Decline

December 22nd, according to reports

December Phthalic Anhydride Prices in China Fluctuate and Decline

According to the commodity market analysis system, as of December 22, the price of o-phthalic anhydride in China was 5,533.33 CNY/ton, a decrease of 3.77% from the price of 5,750 CNY/ton on December 1. In December, the downward trend of o-phthalic anhydride continued, with the price of the raw material ortho-xylene falling and costs decreasing. The operating rate of o-phthalic anhydride enterprises gradually increased, leading to sufficient supply. Meanwhile, the operating load of downstream DOP enterprises slightly declined, weakening the demand support for o-phthalic anhydride. With the reduction in costs and the increase in production, coupled with the weakening demand support, the pressure on o-phthalic anhydride prices to fall increased, resulting in a continued decline in December.

Phthalic anhydride costs decrease and supply increases in China.

On December 22, Sinopec's ortho-xylene price was 5700 CNY/ton, a decrease of 100 CNY/ton from the price of 5800 CNY/ton on November 30, a price decrease of 1.72%. The decline in ortho-xylene prices led to a reduction in phthalic anhydride production costs. In December, the operating load of phthalic anhydride equipment in China remained stable at 70%, with high production levels, leading to an increase in phthalic anhydride output and ample supply. With the increase in supply and the reduction in costs, the downward pressure on phthalic anhydride prices has intensified.

Demand Side: DOP Prices Fluctuated and Rose in December

According to the commodity market analysis system, as of December 22, the DOP price was 7,217.50 CNY/ton, an increase of 2.24% from the DOP price of 7,059.16 CNY/ton on December 1. In December, the operating load of DOP plasticizer enterprises in China decreased slightly to around 60%, leading to a reduction in DOP production. The demand for phthalic anhydride weakened, increasing the downward pressure on its price.

Future Market Prediction

Phthalic anhydride product data analysts believe that in terms of demand, the operating load of DOP equipment in plasticizer enterprises in China has decreased, leading to a reduction in plasticizer production and a weakening of support for phthalic anhydride demand. In terms of costs, the price of ortho-xylene has fallen, resulting in a decrease in raw material prices and a reduction in the cost of phthalic anhydride. Looking ahead, with the cost of phthalic anhydride decreasing and an increase in its production leading to more supply while demand support weakens, it is expected that the price of phthalic anhydride will decline weakly.