Phthalic anhydride prices fluctuated and declined in October 

According to the commodity market analysis system of SunSirs, as of October 31, the price of OX-process phthalic anhydride was 5,950 RMB/ton, a decline from 6,293.33 RMB/ton on October 1, marking the lowest price for phthalic anhydride since March 2021. Phthalic anhydride prices have fallen for seven consecutive months, with a sharp drop of 5.46% in October, the largest monthly decline this year.

In October, the price of raw material phthalic acid fell, and the price of industrial naphthalene weakened, leading to a decrease in phthalic anhydride costs. Phthalic anhydride plant operating rates rebounded slightly in October, resulting in ample supply. Downstream plasticizer prices fluctuated and declined, causing plasticizer plant operating rates to decrease, thus weakening demand support for phthalic anhydride. Due to lower costs and weak demand, phthalic anhydride prices fluctuated and fell in October. 

Phthalic anhydride costs decreased in October

On October 31, Sinopec quoted 6,300 RMB/ton for phthalic anhydride, a decrease of 100 RMB/ton from 6,400 RMB/ton on October 1, representing a drop of 1.56%. Industrial naphthalene prices fluctuated and declined, leading to a decrease in phthalic anhydride prices and consequently, a reduction in phthalic anhydride costs. Phthalic anhydride plant operating rates increased slightly, resulting in an overall rise in the operating rate of phthalic anhydride enterprises and ample phthalic anhydride supply.

Demand side: Downstream operating rates declined, DOP prices fluctuated and fell

According to the commodity market analysis system of SunSirs, as of October 31, the price of DOP was 7,009.16 RMB/ton, a decrease of 4.86% compared to the price of 7,367.50 RMB/ton on October 1. The price of DOP fluctuated downwards in October, with DOP enterprises operating at less than 60% capacity, resulting in a decline in operating rates. Weak demand for phthalic anhydride further increased downward pressure on prices.

Market outlook

According to analysts at SunSirs, regarding phthalic anhydride product data, on the demand side, plasticizer manufacturers' DOP equipment operating rates have dropped to less than 60%, leading to a decrease in plasticizer production and reduced support for phthalic anhydride demand. On the supply side, phthalic anhydride manufacturers' operating rates have slightly increased, resulting in ample supply and insufficient support for price increases. Regarding costs, the price of OX and industrial naphthalene has fallen, reducing phthalic anhydride costs. In summary, in October, phthalic anhydride costs decreased, demand was weak, and supply was ample, leading to a fluctuating downward trend in phthalic anhydride prices.

In late October, the operating rate of DOP (dimethyl phthalate) plants rebounded slightly, leading to increased DOP production. Phthalic anhydride demand also recovered slightly, resulting in higher operating rates and expected increased phthalic anhydride production, leading to ample supply. Looking ahead, with both supply and demand strong, cost support is insufficient. Furthermore, given the low price of phthalic anhydride, further downside is limited. Therefore, phthalic anhydride prices are expected to consolidate weakly at low levels in the near future.

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