July 20th News
Phthalic anhydride prices have significantly increased in China.
According to the commodity market analysis system, as of July 20th, the price of ortho-phthalic anhydride in China was 8666.67 CNY/ton, a significant increase from the price of 7733.33 CNY/ton on July 6th, with a price increase of 12.07%. Compared to the price of 7850 CNY/ton on July 10th, the price increased by 10.40%. In mid-July, the resurgence of geopolitical conflicts in the Middle East led to a sharp rise in crude oil prices, which in turn affected downstream industries, causing a significant increase in the prices of industrial naphthalene and ortho-xylene. This strengthened cost support, leading to a substantial increase in the price of phthalic anhydride.
Phthalic anhydride market stops falling and rises in China
Geopolitical conflicts flare up again: The situation in the Middle East escalates once more, with Iran closing the Strait of Hormuz again, leading to a significant rise in international oil prices. The cost transmission along the entire aromatics chain from crude oil to xylene to ortho-xylene increases, and Sinopec raises its listed price for ortho-xylene. The cost of phthalic anhydride produced via the o-xylene method rises, and industrial naphthalene also experiences a substantial increase, pushing up the raw material costs for phthalic anhydride. The market for DOP and unsaturated resins shows signs of recovery, with downstream companies restocking and increasing their operating rates to around 60%, providing support for the demand for phthalic anhydride. International crude oil prices fluctuate and rise, greatly boosting market confidence, leading to an upward trend in the phthalic anhydride market.
Phthalic anhydride costs in China have risen.
After the intensification of the US-Iran conflict, international crude oil prices surged, directly impacting the aromatics industry chain: As of July 20th, the listed price of ortho-xylene was 8,200 CNY/ton, an increase of 400 CNY/ton from the ortho-xylene price of 7,800 CNY/ton on July 10th. The quoted price of industrial naphthalene was 5,400 CNY/ton. The significant rise in raw material prices led to an increase in the cost of phthalic anhydride; coupled with the rise in crude oil prices, the expectation of further increases in raw materials intensified, enhancing the cost support for phthalic anhydride.
Phthalic anhydride supply is low in China.
On the supply side, the operating rates of phthalic anhydride enterprises in China have slightly increased, with the overall industry operating rate rising to less than 60%. The overall low operating rates are consolidating, and both factory and port inventories are at low levels, leading to a strong desire among manufacturers to maintain prices.
Phthalic anhydride demand support still exists in China.
According to the commodity market analysis system, as of July 20th, the DOP price was 8717.50 CNY/ton, a significant increase from the price of 7975.84 CNY/ton on July 6th, with a price increase of 9.30%. The downstream plasticizer industry has ended its off-season, and production has slowly increased to 60%. The demand support for phthalic anhydride from downstream industries has strengthened, and the rise in the price of DOP finished products has provided some support for the purchase price of phthalic anhydride.
Future Market Forecast
Phthalic anhydride product data analysts believe that on the cost side, crude oil and ortho-xylene have significantly increased, with the rise in raw material costs supporting a substantial increase in phthalic anhydride prices. On the demand side, the traditional off-season for downstream markets is about to end, and downstream manufacturers are gradually increasing their production. Overall, the significant rise in costs coupled with a recovery in demand will lead to a short-term trend of fluctuating increases in phthalic anhydride prices.
