September 11 news
September phthalic anhydride prices in China exceed 10,000 CNY per ton.
According to the commodity market analysis system, as of September 11, the price of ortho-phthalic anhydride in China was 100,833.33 CNY/ton, an increase from 94,000 CNY/ton on September 1, with a price increase of 7.27%. In the first half of this week, the ortho-phthalic anhydride market remained stable, but starting from September 9, there was a concentrated rise, and the price level continued to move upward, reaching the high range of the year, with the average price breaking through the 100,000 yuan mark.
Note: The original text has a typo, it should be 10,083.33 CNY/ton instead of 100,833.33 CNY/ton. Here is the corrected translation:
According to the commodity market analysis system, as of September 11, the price of ortho-phthalic anhydride in China was 10,083.33 CNY/ton, an increase from 9,400 CNY/ton on September 1, with a price increase of 7.27%. In the first half of this week, the ortho-phthalic anhydride market remained stable, but starting from September 9, there was a concentrated rise, and the price level continued to move upward, reaching the high range of the year, with the average price breaking through the 10,000 yuan mark.
Raw material costs rise
Middle East rivalry escalates, causing a surge in crude oil prices, which is transmitted downstream. The rise in crude oil prices has driven up the prices of ortho-xylene and industrial naphthalene. The listed price of ortho-xylene has been raised to 9,850 CNY/ton, and the price of industrial naphthalene has increased to 7,700 CNY/ton. The costs of phthalic anhydride produced from both ortho-xylene and naphthalene methods have also risen, supporting the factories' intention to raise prices.
Phthalic anhydride supply tightens in China
Zhongshan Liancheng, Jining Chen Guang, and other companies have halted production for maintenance, while Jiangsu Sanmu continues to be shut down. The 260,000 tons/year phthalic anhydride unit of Fujian Fuhua Gulei Chemical has repeatedly delayed its start-up plan, leading to a decline in the operating rate of China's phthalic anhydride industry to 58%. Industry inventory is at a low level, with most manufacturers maintaining an oversold status, and suppliers are strongly willing to hold prices firm. Guangdong Lingchuang has new phthalic anhydride capacity, and there is an expectation of resumption and new capacity release from phthalic anhydride units in the South China region, which exerts some pressure on market sentiment, limiting the support for phthalic anhydride price increases.
Phthalic anhydride demand in China is insufficiently supported.
Downstream plasticizer production has slightly decreased, with rigid demand procurement being the main focus. There is a cautious attitude towards high prices, and downstream consumers are clearly resistant to high-priced phthalic anhydride, only maintaining small-scale purchases as needed and unwilling to stockpile large quantities.
Future Market Forecast
Phthalic anhydride product data analysts believe that the surge in raw material prices this week has pushed phthalic anhydride prices above 10,000 yuan. However, with the phthalic anhydride market at a high level, the room for further significant increases is limited, and downstream acceptance is weak, making it more difficult for prices to continue rising sharply. It is likely that phthalic anhydride prices will remain in a high-level fluctuation. As tensions in the Middle East ease and crude oil prices fall, there is a higher risk of phthalic anhydride prices dropping from their current high levels.
