Costs Decline, Phthalic Anhydride Prices Soar and Then Plunge

February 5th, according to news

This week, the phthalic anhydride market in China fluctuated and declined.

According to the commodity market analysis system, as of February 5, the price of o-xylene phthalic anhydride in China was 6193.33 CNY/ton, a 1.43% decrease from the price of 6283.33 CNY/ton on January 21. Since late January, the price of phthalic anhydride has been fluctuating downward. The price of raw material o-xylene has remained stable, while the price of industrial naphthalene has been fluctuating downward, leading to a decrease in costs. The operating rate of phthalic anhydride enterprises has dropped to around 60%, resulting in a tightening supply of phthalic anhydride; the price of phthalic anhydride has continued to fluctuate downward.

Phthalic anhydride costs decrease while supply tightens in China

On February 5, Sinopec's ortho-xylene price was 6,400 CNY/ton, remaining stable compared to the price of 6,400 CNY/ton on January 21. In February, the industrial naphthalene price in East China was 4,200-4,400 CNY/ton, a decrease from the late January price of 4,350-4,700 CNY/ton, leading to a reduction in phthalic anhydride production costs. The operating load of phthalic anhydride equipment in February dropped to 61%, resulting in decreased production and a tightening supply of phthalic anhydride.

Demand Side: DOP Prices Fluctuate and Decline

According to the commodity market analysis system, as of February 5th, the DOP price was 7925.84 CNY/ton, a 1.25% decrease from the DOP price of 8025.84 CNY/ton on February 2nd. The operating load of DOP plasticizer enterprises in China remains stable at around 65%, with stable DOP production and continued support for phthalic anhydride demand.

Future Market Forecast

Phthalic anhydride product data analysts believe that in terms of cost, the price of ortho-xylene has stabilized, while the price of industrial naphthalene has significantly decreased. The decline in raw material prices has led to a decrease in the cost of phthalic anhydride. In terms of supply, the operating rates of phthalic anhydride producers in China have declined, leading to a reduction in phthalic anhydride production and a tightening of supply. Looking ahead, with the cost of phthalic anhydride decreasing and supply tightening while demand remains stable, it is expected that the price of phthalic anhydride will stabilize after some fluctuations.