Phthalic anhydride prices stopped falling and rose

According to SunSirs' commodity price analysis system, as of January 5th, the price of OX method phthalic anhydride was 6,000 RMB/ton, an increase of 8.43% compared to the price of 5,533.33 RMB/ton on December 22nd, reversing the previous downward trend. Since late December, the price of phthalic anhydride had rebounded, driven by a significant increase in the price of the raw material o-xylene, leading to higher production costs. Meanwhile, the operating rate of phthalic anhydride manufacturers decreased, resulting in a tighter supply. Downstream DOP manufacturers had also seen a slight decrease in operating rates, weakening the demand for phthalic anhydride. The combination of rising costs and tighter supply had fueled the upward momentum in phthalic anhydride prices, leading to a volatile but generally rising trend.

Phthalic anhydride costs were rising and supply was tightening

On January 5th, Sinopec's OX price was 6,100 RMB/ton, an increase of 400 RMB/ton compared to the price of 5,700 RMB/ton on December 20th, representing a 7.02% increase. The rise in OX prices led to increased costs for phthalic anhydride. After the New Year holiday, the operating rate of phthalic anhydride plants decreased to 65%, resulting in reduced production and a tightening of supply. This supply shortage, coupled with rising costs, further fueled the upward trend in phthalic anhydride prices.

Demand side: DOP prices stopped falling and started to rise

According to SunSirs' commodity price analysis system, as of January 5th, the price of DOP was 7,367.50 RMB/ton, a fluctuating increase of 2.91% compared to the price of 7,159.16 RMB/ton on December 20th. The operating rate of DOP manufacturers decreased slightly to 55%, resulting in reduced DOP production. The weakened demand for phthalic anhydride was putting significant downward pressure on its price.

Market Outlook

According to SunSirs' phthalic anhydride product data analyst, on the demand side, the operating rate of DOP production facilities at plasticizer companies had decreased, leading to a decline in plasticizer production and weaker support for phthalic anhydride demand. On the cost side, the price of OX had risen, leading to increased raw material costs and higher phthalic anhydride production costs. Looking ahead, with rising phthalic anhydride costs, tightening supply, and weakening demand, the price of phthalic anhydride is expected to rise sharply.

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