The price of plasticizer DOP increased significantly in January

According to the SunSirs' commodity price analysis system, as of January 31st, the price of DOP was 8,017.50 RMB/ton, a significant increase compared to the price of 7,325.84 RMB/ton on January 1st, representing a 9.44% increase. On February 4th, the price of DOP was 7,950.84 RMB/ton, a decrease compared to the price of 8,017.50 RMB/ton on January 31st, representing a 0.83% decrease. In January, the operating rate of DOP manufacturers decreased slightly, with an operating rate of around 63%, resulting in a decrease in DOP production compared to the previous month. The prices of isooctanol and phthalic anhydride increased significantly, leading to higher raw material costs and thus higher DOP production costs. This increase in costs, coupled with decreased supply, led to a significant increase in the price of DOP in January. In February, the operating rate of DOP manufacturers increased slightly, leading to an increase in the supply of plasticizers. Combined with the fact that pre-holiday stockpiling was nearing its end and demand was falling, the price of plasticizers decreased in February..

Production at DOP plasticizer manufacturers saw a slight decrease

In January, the operating rate of DOP manufacturers decreased slightly, falling from 68% in December to 63%. DOP production decreased, leading to a decrease in DOP supply, and upward pressure on DOP prices remained. In February, the operating rate of DOP enterprises was around 64%, resulting in increased DOP production and sufficient DOP supply.

The price of the raw material, isooctanol, increased significantly

According to the business data analysis system of SunSirs, as of January 31, the price of isooctanol was 7,880 RMB/ton, a significant increase compared to the price of 6,916.67 RMB/ton on January 1, representing a 13.93% increase. On February 4, the price of isooctanol was 7,716.67 RMB/ton, a decrease compared to the price of 7,880 RMB/ton on January 31, representing a 2.07% decrease. Isooctanol manufacturers have completed equipment maintenance, and the operating rate of isooctanol plants has increased to 95%, resulting in sufficient supply. The significant increase in propylene prices has increased the cost support for isooctanol. The sharp increase in isooctanol prices has led to increased costs for plasticizers, boosting the upward momentum of DOP prices. In February, isooctanol prices fell from their high levels, leading to a decrease in plasticizer costs.

In January, the phthalic anhydride market experienced a significant increase

According to the commodity price analysis system of SunSirs, as of January 31st, the price of OX method phthalic anhydride was 6,243.33 RMB/ton, a significant increase compared to the price of 5,966.67 RMB/ton on January 1st, representing a 4.64% increase. On February 4th, the price of phthalic anhydride was 6,200 RMB/ton, a decrease compared to the price of 6,283.33 RMB/ton on January 27th, representing a 1.33% decrease. The increase in the price of the raw material o-xylene led to an increase in the cost of phthalic anhydride, resulting in fluctuating price increases for phthalic anhydride in January. This also led to increased costs for DOP (dioctyl phthalate), providing stronger support for price increases in plasticizers. In late January, the price of industrial naphthalene fell, and the price of o-xylene stabilized weakly, leading to a decrease in the cost of phthalic anhydride and subsequent fluctuating price decreases. The decrease in plasticizer costs weakened the support for price increases in plasticizers.

Demand for plasticizers was increasing

On January 8, 2026, the Ministry of Finance and the State Taxation Administration issued an announcement clarifying that the 13% value-added tax (VAT) export rebate for plasticized PVC would be canceled effective April 1, 2026, aligning it with the treatment of unplasticized PVC and PVC powder. Plasticized PVC, also known as flexible PVC, relies on plasticizers (such as DOTP and DOP) to adjust its flexibility and is widely used in areas such as wires and cables, artificial leather, films, and hoses. To take advantage of the last remaining tax rebate benefits, these companies accelerated order fulfillment before April 1, and overseas customers also concentrated their purchases, temporarily boosting export volumes and driving a short-term increase in demand for plasticizers. Pre-holiday stocking before the Spring Festival also provided some support for downstream orders of plasticizers, leading to increased demand for plasticizers.

Market outlook

According to SunSirs' plasticizer product data analyst, regarding costs, in January, the prices of isooctanol and phthalic anhydride rose sharply, leading to increased cost support for DOP plasticizers and a significant increase in plasticizer prices. In February, the prices of isooctanol and phthalic anhydride fell, resulting in a decrease in DOP plasticizer costs. Regarding supply, in January, the operating rate of plasticizer enterprises remained weak but stable, and plasticizer production decreased slightly. In February, the operating rate of plasticizer enterprises increased, leading to higher production and ample supply of plasticizers. Regarding demand, tax rebate benefits boosted downstream demand, resulting in a temporary increase in plasticizer demand in February and March. However, as pre-holiday stocking ended, plasticizer demand declined. Looking ahead, with falling costs, ample supply, and slowing demand growth, the price of DOP plasticizer is expected to consolidate weakly.

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