Phthalic Anhydride Prices Rebound and Rise in China

December 25th news

Phthalic anhydride market rebounds and rises in China

According to the commodity market analysis system, as of December 25, the price of ortho-phthalic anhydride in China was 5633.33 CNY/ton, up from 5533.33 CNY/ton on December 22, with a price increase of 1.81%. This week, the price of ortho-phthalic anhydride in China has stopped falling and rebounded, with the price of raw material ortho-xylene remaining stable, and the cost stabilizing. The operating rate of ortho-phthalic anhydride enterprises has increased, and the supply of ortho-phthalic anhydride is sufficient. The operating load of downstream DOP enterprises has slightly increased, and the demand support for ortho-phthalic anhydride has strengthened. With the increase in operating rates and the strengthening of demand support, the downward pressure on ortho-phthalic anhydride has weakened.

Phthalic anhydride costs decrease and supply increases in China.

On December 25, Sinopec's orthoxylene quote was 5,700 CNY per ton, with the orthoxylene price remaining stable and the cost of phthalic anhydride stabilizing. This week, the operating load of phthalic anhydride equipment in China increased to 75%, leading to an increase in production and an ample supply of phthalic anhydride. Despite the increased supply, there is still pressure for the price of phthalic anhydride to decrease.

Demand Side: DOP prices experienced volatile increases this week.

According to the commodity market analysis system, as of December 25, the DOP price was 7,217.50 CNY/ton, an increase of 0.81% from the DOP price of 7,159.16 CNY/ton on December 21. This week, the operating load of China's DOP plasticizer enterprises slightly increased, with the operating rate rising to 65%, leading to an increase in DOP production. The demand for phthalic anhydride has strengthened, reducing the downward pressure and increasing the upward support for phthalic anhydride.

Future Market Forecast

Phthalic anhydride product data analysts believe that, in terms of demand, the operating load of DOP equipment in plasticizer companies in China has increased, leading to a rise in plasticizer production and greater support for phthalic anhydride demand. Overall, with stable costs for phthalic anhydride, increased production, and stronger demand, manufacturers are experiencing larger profit losses, which strengthens their desire to maintain prices. The reduction in low-priced supplies in the market and the growing speculative buying atmosphere suggest that phthalic anhydride prices are expected to rebound and increase.