Costs Decline, February DOP Prices Experience Volatile Drop

February 28 news

February plasticizer DOP prices fluctuated and fell in China

According to the commodity market analysis system, as of February 28, the DOP price was 7700.84 CNY/ton, a fluctuating decrease from the DOP price of 8017.50 CNY/ton on February 1, with a price decrease of 3.95%. In February, the operating load of DOP plasticizer enterprises in China slightly decreased, with an operating rate of around 57-60%, leading to a reduction in DOP production. The prices of isooctanol and phthalic anhydride fluctuated downward, causing a decline in raw material prices and a decrease in DOP costs. With the decline in costs and supply, the DOP plasticizer prices fluctuated downward. In February, the operation of DOP enterprises in China slightly decreased, and due to the lower demand during the Spring Festival, both the supply and demand for plasticizers decreased, resulting in a fluctuating decrease in plasticizer prices in February.

Plasticizer DOP manufacturers in China see a slight decrease in production.

In February, the operating load of DOP manufacturers in China slightly decreased, with the operating rate dropping from 63% in January to 57% by the end of February. DOP production declined, and DOP supply decreased, leading to a weakening in the upward momentum of DOP prices. In February, the operating rate of DOP enterprises in China was around 57-60%, DOP production decreased, but DOP supply remained adequate.

The price of the raw material 2-ethylhexanol fluctuates and declines in China.

According to the commodity market analysis system, as of February 28, the price of 2-ethylhexanol was 6,666.67 CNY/ton, a 15.40% decrease from the price of 7,880 CNY/ton on February 1. The operating rate of 2-ethylhexanol production facilities in China is high, with the load maintained at around 95%, leading to an ample supply of 2-ethylhexanol. However, the demand for 2-ethylhexanol is weak due to the decreased operation of plasticizer manufacturers. The significant drop in the price of 2-ethylhexanol has led to a reduction in the cost of plasticizers, increasing the pressure for DOP prices to fall. In February, the price of 2-ethylhexanol fell significantly, reducing the cost of plasticizers.

February phthalic anhydride prices in China rose significantly

According to the commodity market analysis system, as of February 28, the price of ortho-phthalic anhydride in China was 6,150 CNY per ton, a decrease of 1.49% from the price of 6,243.33 CNY per ton on February 1. The price of the raw material ortho-xylene remained stable, and the cost of phthalic anhydride was stable. Due to the decline in demand for plasticizers, the price of phthalic anhydride has been fluctuating downward. With the reduction in the cost of plasticizers, the support for the increase in plasticizer prices has weakened.

Future Market Expectations

Plasticizer product data analysts believe that in terms of costs, the price of 2-ethylhexanol fell significantly in February, while the price of phthalic anhydride decreased slightly, leading to a reduction in the cost of plasticizer DOP. In terms of supply, the operating rate of plasticizer enterprises in China decreased slightly in February, resulting in a decrease in plasticizer production. Regarding demand, the tax rebate benefits have driven an increase in downstream demand, with a phased increase in plasticizer demand in February and March. However, around the Spring Festival, the operating rates of downstream enterprises in China decreased, leading to relatively weak plasticizer demand in February. Looking ahead, with the decline in costs and the recovery of supply, it is expected that the price of plasticizer DOP will remain weak and consolidate.