DOP Market Increased Dramatically ( Aug 11-17, 2017)

1. Capryl Alcohol Market

The capryl alcohol market rebounded this week. Last week, Jiangsu Huachang planned to start units maintenance ahead. Capryl alcohol units in Bluesail Group were shut unexpectedly influenced by environment protection supervision, and the recovery time was uncertain. The supply of capryl alcohol was tight in the spot market. Part of traders were reluctant to sell goods at low prices, and players were bullish about the capryl alcohol market. The mainstream factories raised RMB 200/mt of the capryl alcohol price. It was hard to find low-priced capryl alcohol.

Up to August 17, the capryl alcohol settlement price in East China was in the range of RMB 8,900-9,000/mt, which was up RMB 250/mt. The capryl alcohol settlement price in North China was in the range of 8,700-8,800/mt, which was down 0,12% W-O-W. The capryl alcohol settlement price in Shandong was in the range of 8,700-8,900/mt, which was up 0.29% W-O-W.

In the short term, the supply of capryl alcohol in spot market will be still tight. The environment protection supervision will be still tight in Shandong and Zhejiang which are the main areas of capryl alcohol upstream and downstream. Although the capryl alcohol operating rate will be uncertain, the units in downstream factories will be shut. The tight supply of capryl alcohol will be hard to release. It is predicted that the capryl alcohol will fluctuate at highs.

2. Phthalic Anhydride Market Analysis

The phthalic anhydride market rebounded from the bottom this week. Up to August 17, the market price of phthalic anhydride produced via o-xylene method was RMB 6,600/mt, which was up RMB 200/mt or 3.13% W-O-W. The market price of phthalic anhydride produced via naphthaline method was RMB 6,100/mt, which was up RMB 200/mt or 3.39% W-O-W.

The plasticizer market continued rebounding influenced by the environment protection, and the increase rate grew steadily. Some phthalic anhydride market players show resistance to lower price and they planned to support the market. The supply of low-priced phthalic anhydride decreased greatly. However, the operating rate in downstream was limited and decreased because of environment protection. It is predicted that the demand for phthalic anhydride will be weak and the market will be range-bound.

3. DOP Market Analysis

The dioctyl phthalate (DOP) market increased significantly this week. Up to August 17, the DOP market price was RMB 9,500/mt, which was up RMB 900/mt or 10.47% W-O-W.

DOP units in many factories were shut influenced by environment protection. The supply of DOP decreased. Many factories stopped selling goods to the market and players were reluctant to sell DOP at low price. The capryl alcohol price increased continually, and the phthalic anhydride price also rose. The DOP factories followed actively. The DOP units will restart on September. The players will be bullish about the DOP market. The mainstream negotiation will show an uptrend and the increase rate will rise.