Costs Soar, Phthalic Anhydride Prices Surge

March 9th, News

March Phthalic Anhydride Prices Surge in China

According to the commodity market analysis system, as of March 9, the price of o-xylene phthalic anhydride in China was 7466.67 CNY/ton, a significant increase from the price of 6150 CNY/ton on March 1, with a price increase of 21.41%. In March, the price of phthalic anhydride in China rose significantly. Due to the escalation of the geopolitical crisis in the Middle East, the surge in crude oil prices has been passed down to the downstream sector. The price of the raw material o-xylene increased significantly to 10700 CNY/ton, and the price of industrial naphthalene also surged, leading to an increase in costs. The operating rate of phthalic anhydride enterprises in China rose to 65%, ensuring a sufficient supply of phthalic anhydride. With the increase in costs and a sufficient supply, the price of phthalic anhydride in China has risen significantly.

Phthalic anhydride costs surge with ample supply in China

Affected by the escalating geopolitical crisis in the Middle East, crude oil prices have surged, transmitting upward pressure to downstream sectors and driving up raw material costs, including a sharp rise in the price of ortho-xylene. On March 9, Sinopec quoted an ortho-xylene price of 10,700 CNY per ton, a significant increase from the March 1 price of 6,400 CNY per ton—a rise of 67.19%. The dramatic surge in ortho-xylene prices has led to a substantial increase in phthalic anhydride production costs. In March, the operating rate of phthalic anhydride facilities rose to 65%, reflecting improved utilization and higher output, ensuring ample supply of phthalic anhydride.

Demand Side: DOP prices have risen sharply

According to the commodity market analysis system, as of March 9th, the DOP price was 9375.83 CNY/ton, a significant increase from 7700.84 CNY/ton on March 1st, with a price increase of 21.75%. The escalation of the geopolitical crisis in the Middle East has led to a surge in crude oil prices, which quickly affected the downstream industries, causing a substantial rise in the price of the plasticizer DOP. The operating load of DOP plasticizer enterprises in China has increased to 66%, leading to an increase in DOP production. As DOP prices rise, the demand for phthalic anhydride also increases, providing greater support for the demand for phthalic anhydride.

Future Market Forecast

Phthalic anhydride product data analysts believe that in terms of cost, due to the intensification of the geopolitical crisis in the Middle East, crude oil prices have surged, which has been passed on downstream, causing a sharp increase in ortho-xylene prices. As a result, raw material prices have skyrocketed, leading to an increase in the cost of phthalic anhydride. In terms of supply, the operating rates of phthalic anhydride enterprises in China have increased, resulting in higher production and ample supply of phthalic anhydride. On the demand side, the operating rates of plasticizer companies in China have also increased, driving up the demand for phthalic anhydride. Looking ahead, with the intensification of the geopolitical crisis in the Middle East and the surge in raw material prices, the cost of phthalic anhydride is expected to rise. Additionally, with both supply and demand increasing, it is anticipated that the price of phthalic anhydride will significantly increase in the future.