Plasticizer DOP prices fluctuated and fell in August 

According to the SunSirs commodity market analysis system, as of August 29th, the price of DOP was 7,617.50 RMB/ton, a 4.25% decrease from the price of 7,955.83 RMB/ton on August 1st. The fluctuating decline in the prices of raw materials, isooctanol and phthalic anhydride, increased downward pressure on DOP prices. DOP companies maintained high operating loads in August, leading to increased DOP production and supply. Downstream demand was unlikely to improve, with inquiries for DOP purchases remaining flat and limited improvement in DOP demand and transaction volume. Increased supply and lower costs led to a fluctuating decline in plasticizer prices in August.

The price of the raw material isooctanol fluctuated downward in August

According to the SunSirs commodity market analysis system, as of August 29th, the price of isooctanol was 7,283.33 RMB/ton, a 3.32% decrease from the 7,533.33 RMB/ton on August 1st. In August, isooctanol plant operating rates increased, with the utilization rate rising from less than 80% in July to 95% by the end of August. This, coupled with new isooctanol production capacity, increased supply. Downstream plasticizer manufacturers were operating at high levels, and demand for isooctanol rebounded. With increased supply and recovering demand, isooctanol prices fluctuated downward in August. Declining plasticizer costs increased downward pressure on DOP prices.

Prices for the raw material phthalic anhydride rebounded in August

According to the SunSirs commodity market analysis system, as of August 29th, the price of OX based phthalic anhydride was 6,300 RMB/ton, a 5.26% decrease from the price of 6,650 RMB/ton on August 1st. In August, OX prices fluctuated downward, while industrial naphthalene prices bottomed out and rebounded, providing significant cost support for phthalic anhydride. Phthalic anhydride equipment utilization remained low in August, with phthalic anhydride plant operating rates around 60%. This reduced phthalic anhydride supply and high equipment utilization at downstream plasticizer plants maintained demand support. Reduced supply and lowered costs led to a rebound in phthalic anhydride prices in August. The bottoming out and rebound in raw material phthalic anhydride prices also helped plasticizer costs rebound, easing downward pressure on plasticizer DOP prices in August.

Market outlook

Analysts of SunSirs believe that, with regard to costs, isooctanol prices fluctuated downward, while phthalic anhydride prices had bottomed out and rebounded, and downward pressure on plasticizer DOP costs remained. On the supply side, plasticizer plant operating rates were consolidating at a high level, plasticizer output was increasing, and plasticizer supply was sufficient. On the demand side, the overall economic downturn, coupled with anti-involution competition and the elimination of outdated production capacity, had weakened downstream demand. Overall, with strong supply and weak demand, coupled with continued downward pressure on costs, it is expected that plasticizer DOP prices will fluctuate downward in the future.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.