The price of plasticizer DOP fluctuated and declined in February

According to the SunSirs’ commodity market analysis system, as of February 28th, the price of DOP was 7,700.84 RMB/ton, a decrease of 3.95% compared to the price of 8,017.50 RMB/ton on February 1st. In February, the operating rate of DOP plasticizer enterprises slightly decreased, to around 57-60%, resulting in a decline in DOP production. The prices of isooctanol and phthalic anhydride also fluctuated downwards, leading to a decrease in raw material prices and a reduction in DOP costs. This combination of lower costs and reduced supply contributed to the fluctuating decline in DOP plasticizer prices in February. The slight decrease in DOP enterprise operating rates in February, coupled with reduced demand during the Spring Festival, resulted in a double decrease in both supply and demand for plasticizers, leading to a fluctuating decline in plasticizer prices in February.

DOP plasticizer manufacturers' operating rates slightly decreased

In February, the operating rate of DOP manufacturers decreased slightly, dropping from 63% in January to 57% at the end of February. This decline in DOP production and supply weakened the upward pressure on DOP prices. The operating rate of DOP enterprises in February was around 57-60%, resulting in ample DOP supply despite the decrease in production.

The price of raw material isooctanol fluctuated and fell

According to the commodity market analysis system of SunSirs, as of February 28th, the price of isooctanol was 6,666.67 RMB/ton, a decrease of 15.40% compared to the price of 7,880 RMB/ton on February 1st. Isooctanol producers were operating at high capacity, with plant operating rates maintained at around 95%, resulting in ample supply. Meanwhile, plasticizer producers were operating at lower rates, leading to weak demand for isooctanol. The sharp drop in isooctanol prices had reduced plasticizer costs, increasing downward pressure on DOP (diethyltoluene) prices. The significant drop in isooctanol prices in February had lowered plasticizer costs.

Phthalic anhydride prices rose sharply in February

According to the commodity market analysis system of SunSirs, as of February 28th, the price of OX method phthalic anhydride was 6,150 RMB/ton, a decrease of 1.49% compared to the price of 6,243.33 RMB/ton on February 1st. The price of raw material OX was temporarily stable, keeping phthalic anhydride costs stable. Demand for plasticizers had decreased, leading to a fluctuating decline in phthalic anhydride prices. The decrease in plasticizer costs had weakened the support for price increases in plasticizers.

Market Outlook:

According to data analysts at SunSirs, regarding costs, isooctanol prices fell sharply in February, while phthalic anhydride prices declined slightly, leading to a decrease in the cost of DOP plasticizer. On the supply side, the operating rate of plasticizer manufacturers decreased slightly in February, resulting in a decline in plasticizer production. On the demand side, tax rebates boosted downstream demand, leading to a temporary increase in plasticizer demand in February and March. However, around the Spring Festival, downstream manufacturers reduced their operating rates, resulting in relatively weak demand in February. Looking ahead, with declining costs and a recovery in supply coupled with weak demand, DOP plasticizer prices are expected to consolidate weakly in the near future.

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