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SunSirs: Commodity Chemicals: Domestic Phthalic Anhydride (PA) Price is So Low in its “Supposed” Peak Season
November 16 2019 10:26:40SunSirs(Daisy)

According to data from SunSirs, up till 15th November, the PA made by adjacent process is priced at RMB 6,262.5 yuan/ton. It is 13.02% much lower than that price in late September and even 20.73% lower on year-on-year basis. With the temperature going down, the plasticizer industry is supported to enter the peak season. However, the price of PA has been falling instead of increasing as expected.

The domestic PA market price continues to fall recently. The market price of PA in East China is continuously weak. The downstream factories procure based on exact need. The pressure of factories’ inventory increases. The high-end transactions are blocked. Manufacturers handle more inventories. The market price of PA goes weaker. The mainstream price of adjacent process PA in East China is RMB 6,000-6,400 yuan/ton. The mainstream of naphthalene PA supply is RMB 5,700-5,800 yuan/ton. The mainstream price of PA market in North China is RMB 5,900-6,200 yuan/ton. Most of manufacturers are setting price lower. The operating rate of downstream is fairly low. And downstream factories maintain on-demand procurement and have a strong wait-and-see attitude. Domestic PA plant runs stably and the supply of PA is sufficient, associated with the poor downstream demand. Overall, the demand for PA has decreased, and the price trend of PA has continued to decline.

In terms of upstream players, China National Petroleum and Gas Corporation (Sinopec Group) execute upstream product price of PA—O-benzene at RMB 6,200 yuan/ton. As the restart of O-benzene manufacturers, the supply of goods increases. The price of imported goods in the port area fell, and the quotation fell. Recently, the price of O-benzene near the port fell. The port inventory is at a low level. The external-disk price of O-benzene shocks down. The actual transaction price and real order is subject to negotiation, and the details are discussed. Influenced by the dropping price of the upstream raw material- O-benzene, the price trend of PA market continued to decline.

The downstream DOP price is slightly lower. The price of isooctanol is lower, and the DOP cost is lower. The DOP price is fluctuating, the downstream demand of DOP is normal. Customer's purchasing enthusiasm is general. Downstream PVC market is fluctuating and declining. The high-end transaction of DOP is blocked. The mainstream transaction price of DOP market slightly reduces to RMB 7,300-7,500 yuan/ton. The downstream price trend is declining, and the upstream OX price is falling, affected by the downward cost. It is expected that the market price of PA will maintain a slightly lower trend in the later period.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.

 

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