Pressure on DOTP costs is driving prices down

DOTP

This is a traditional downstream demand season in September, but for this year's PVC soft products, PVC and plasticizer prices are far higher than the same period, PVC soft products factory cost pressure, start the enthusiasm is not high, and late September, jiangsu, guangdong, zhejiang, anhui promoting continuously power brownouts policy limit production, downstream starts falling, DOTP requirements are affected. At the same time, DOTP factories were also affected. Although DOTP operating load decreased, it did not prevent the price from falling all the way.

octanol

In the middle and late September, the power rationing policy in east and South China continued to be promoted, plasticizer devices continuously reduced production, octanol downstream users slowed down the spot purchase of raw materials, and the market for new orders was cold.  However, raw octanol devices are mainly concentrated in Shandong, hich has not been significantly affected by the current round of power restriction, so the supply of octanol is relatively stable.

 In addition, after the Mid-Autumn Festival, Shandong Jianlan octanol plant was restarted, which increased the supply side and increased the shipment pressure of the factory. Meanwhile, tianalkali and Lanfan octanol plants are also expected to resume work in the near future. The supply of octanol is expected to continue to increase, while the downstream demand is expected to shrink, increasing the contradiction between supply and demand, and the octanol market sentiment is bearish.

The downstream demand of DOTP also shows no signs of improvement, especially under the power restriction policy in east and South China, the operation of downstream factories is even decreased. Although the traditional peak season of silver has dropped to 10, there is no obvious sign of improvement in downstream orders. Downstream factories are not enthusiastic about DOTP procurement, and the on-site demand for transactions is limited.

No signs of improvement as a whole, the downstream demand, although in some parts of DOTP starts to load down, on the spot supply cuts, but for the price support power is limited, especially octanol raw material prices continued downward expectations, poor mentality to traders more short, the cost side is the lack of a good situation, is expected late DOTP are still continue downward space market.