August 11 news
August Phthalic Anhydride Prices Decline from High Levels in China
According to the commodity market analysis system, as of August 11, the price of o-phthalic anhydride in China was 8966.67 CNY/ton, a decrease from the high of 9283.33 CNY/ton on August 1. The price decreased by 3.41%. In August, crude oil prices fluctuated widely, which affected the downstream market. The price of industrial naphthalene decreased from its high, while the price of ortho-xylene remained stable. As a result, cost support weakened, and the price of o-phthalic anhydride in China fell from its peak.
Phthalic anhydride prices in China have fallen from their peak.
The tensions in the Middle East continue to escalate on multiple fronts, with military conflicts, diplomatic maneuvers, and maritime security incidents intertwined, showing no signs of easing in the short term. Crude oil prices are fluctuating widely. The cost transmission along the entire aromatics chain from crude oil to xylene to ortho-xylene has stabilized, with Sinopec's ortho-xylene listed price stopping its rise and stabilizing. Industrial naphthalene is declining, and the raw material cost for phthalic anhydride has decreased. The DOP and unsaturated resins market is consolidating at a high level, with downstream operations dropping to around 51%, weakening the demand support for phthalic anhydride. Phthalic anhydride production rates are stable, with some maintenance units resuming production, leading to an expected increase in industry operating rates and a potential rise in market supply pressure.
Phthalic anhydride cost support in China has weakened.
In August, international crude oil remained at a high level, directly affecting the aromatics industry chain: as of August 11, the listed price of ortho-xylene was 8,500 CNY/ton, stable compared to the price of 8,500 CNY/ton on August 1. On August 11, the quoted price of industrial naphthalene dropped to 5,400 CNY/ton, with raw material prices falling, weakening the cost support for phthalic anhydride.
Phthalic anhydride supply stable, inventory accumulation
On the supply side, some phthalic anhydride plants in China have resumed production after maintenance, and the operating rate of phthalic anhydride enterprises is expected to increase. The overall industry operating rate remains stable at around 59%, with overall production remaining stable. Both factory and port inventories are slowly accumulating, and manufacturers' willingness to hold prices firm has decreased.
Phthalic anhydride demand support in China has weakened.
According to the commodity market analysis system, as of August 11, the DOP price was 8,800.83 CNY/ton, showing a weak consolidation compared to the DOP price of 8,800.83 CNY/ton on August 1. The price has stabilized. The downstream plasticizer industry, due to its own poor sales and low profitability, is only maintaining just-in-time purchases at lower prices for phthalic anhydride. At the same time, the end-user industries such as coatings and PVC products have entered a seasonal off-season, with the operating rate of the plasticizer industry dropping to 51%, further weakening demand. Additionally, exports are also facing some resistance. The demand support for phthalic anhydride has weakened, increasing the downward pressure on phthalic anhydride prices.
Future Market Forecast
The phthalic anhydride product data analyst believes that terminal demand is in the off-season, and downstream users are reluctant to pay high prices for raw materials. Therefore, procurement is expected to remain primarily driven by rigid demand. Cost-side support is limited: industrial naphthalene prices are forecast to weaken slightly, further reducing cost support for naphthalene-based phthalic anhydride. Supply pressure remains manageable: although there are expectations of resumed production in the phthalic anhydride industry and a gradual buildup of inventories, overall industry inventory levels remain relatively low, limiting the increase in available spot supply and thus capping the downward room for phthalic anhydride prices. It is anticipated that the phthalic anhydride market will continue to operate on the weaker side in the short term, with the price center likely to continue declining slightly.
