Middle East Geopolitical Crisis Intensifies, March DOP Prices Surge

March 9th, news:

March sees a significant increase in DOP plasticizer prices in China

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 operating load of DOP plasticizer enterprises in China has increased, with the operating rate rising to around 65%, leading to an increase in DOP production; the escalation of the geopolitical crisis in the Middle East has led to a sharp rise in crude oil prices, which quickly spread downstream along the industrial chain, causing a substantial increase in the prices of isooctanol and phthalic anhydride. The surge in raw material prices has driven up the cost of DOP, resulting in a significant increase in the price of DOP plasticizers.

The price of the raw material 2-ethylhexanol has significantly increased in China.

According to the commodity market analysis system, as of March 9, the price of 2-ethylhexanol was 9,050 CNY per ton, a significant increase from 6,666.67 CNY per ton on March 1, with a price increase of 35.75%. The operating rate of 2-ethylhexanol production facilities in China remains high, at around 95%, ensuring ample supply. The intensification of geopolitical crises in the Middle East has led to a surge in crude oil prices, which has been passed down to downstream products, causing a substantial increase in the price of 2-ethylhexanol. This, in turn, has raised the cost of plasticizers, leading to increased support for the rise in DOP prices.

Phthalic anhydride prices in China have risen significantly.

According to the commodity market analysis system, as of March 9, the price of ortho-phthalic anhydride 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%. Due to the intensification of the geopolitical crisis in the Middle East, crude oil prices have risen sharply, leading to a surge in the price of raw material ortho-xylene to 10700 CNY/ton, and a substantial increase in the cost of phthalic anhydride. The significant rise in the price of phthalic anhydride has led to an increase in the cost of plasticizers, further supporting the upward trend in plasticizer prices.

Future Market Expectations

The plasticizer product data analyst believes that, driven by the escalating geopolitical crisis in the Middle East, crude oil prices have surged, transmitting upward pressure to downstream sectors. As a result, the prices of isooctanol and phthalic anhydride have both risen sharply, leading to a significant increase in the cost of the plasticizer DOP. Looking ahead, with the ongoing Middle East crisis, persistently high crude oil prices, rising downstream costs, and simultaneous growth in both supply and demand, we expect the price of plasticizer DOP to rise substantially in the coming period.