SunSirs: Increased Costs Led to a Significant Rise in Phthalic Anhydride Prices

Phthalic anhydride prices fluctuated and rose

According to the commodity market analysis system of SunSirs, as of March 2nd, the price of OX method phthalic anhydride was 6,383.33 RMB/ton, a rebound of 3.79% from the price of 6,150 RMB/ton on March 1st; and a fluctuating increase of 2.24% from the price of 6,243.33 RMB/ton on February 1st. The price of phthalic anhydride rebounded in March. Rising prices of raw material OX and stabilizing prices of industrial naphthalene led to increased costs. The operating rate of phthalic anhydride enterprises decreased to 57%, resulting in a tight supply of phthalic anhydride. The combination of rising costs and tight supply caused phthalic anhydride prices to fluctuate upwards.

Phthalic anhydride costs were rising and supply was tightening

Affected by geopolitical factors in the Middle East, crude oil prices surged, leading to increased raw material costs and a rise in phthalic anhydride prices. On March 2nd, Sinopec quoted phthalic anhydride at 6,500 RMB/ton, up 1.56% from 6,400 RMB/ton on March 1st. The rise in phthalic anhydride prices also increased phthalic anhydride costs. In March, the operating rate of phthalic anhydride plants dropped to 57%, resulting in reduced production and a tighter supply of phthalic anhydride.

Demand side: DOP prices fluctuated upwards

According to the commodity market analysis system of SunSirs, as of March 2, the price of DOP was 7,800.84 RMB/ton, an increase of 1.30% compared to 7,700.84 RMB/ton on March 1. The operating rate of DOP plasticizer enterprises dropped to 59%, leading to a decrease in DOP production and a rise in DOP prices. Demand for phthalic anhydride remains supportive.

Market outlook

According to analysts at SunSirs, the cost of phthalic anhydride hd increased due to geopolitical factors in the Middle East, leading to a surge in crude oil and OX prices, and consequently, higher raw material costs. On the supply side, phthalic anhydride production had decreased due to reduced operating rates, resulting in a tighter supply. Looking ahead, the continued geopolitical impact in the Middle East, coupled with rising raw material prices and weak supply and demand, suggests that phthalic anhydride prices are likely to fluctuate upwards in the near future.

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