Phthalic anhydride prices surged in March

According to the commodity market analysis system of SunSirs, as of March 9th, the price of OX method phthalic anhydride was 7,466.67 RMB/ton, a significant increase of 21.41% compared to 6,150 RMB/ton on March 1st. The price of phthalic anhydride rose sharply in March. Affected by the escalating geopolitical crisis in the Middle East, the surge in crude oil prices was transmitted to downstream industries, causing the price of raw material OX to rise sharply to 10,700 RMB/ton. Industrial naphthalene prices also surged, leading to increased costs. The operating rate of phthalic anhydride enterprises rose to 65%, resulting in ample supply. The combination of rising costs and ample supply led to a significant increase in phthalic anhydride prices.

Phthalic anhydride costs surged while supply remained ample

The escalating geopolitical crisis in the Middle East led to a surge in crude oil prices, which was transmitted to downstream industries, increasing raw material costs and driving up the price of phthalic anhydride. On March 9th, Sinopec quoted phthalic anhydride at 10,700 RMB/ton, a significant increase of 67.19% compared to 6,400 RMB/ton on March 1st. This surge in phthalic anhydride prices had resulted in a substantial increase in phthalic anhydride costs. In March, the operating rate of phthalic anhydride plants rose to 65%, leading to increased production and ample supply.

On the demand side: DOP prices rose sharply

According to the commodity market analysis system of SunSirs, as of March 9th, the price of DOP was 9,375.83 RMB/ton, a significant increase of 21.75% compared to the price of 7,700.84 RMB/ton on March 1st. The escalating geopolitical crisis in the Middle East led to a surge in crude oil prices, which quickly transmitted downstream along the industrial chain, resulting in a substantial increase in the price of plasticizer DOP. DOP production plants increased their operating rates to 66%, leading to increased DOP production, higher prices, and increased demand for phthalic anhydride, thus providing stronger support for phthalic anhydride demand.

Market outlook

According to analysts at SunSirs, the phthalic anhydride product data analysis indicated that, on the cost side, the escalating geopolitical crisis in the Middle East had led to a surge in crude oil prices, which was transmitted downstream, causing a sharp rise in OX prices and raw material prices, thus increasing the cost of phthalic anhydride. On the supply side, phthalic anhydride producers were increasing their operating rates, resulting in increased production and ample supply. On the demand side, plasticizer producers were also increasing their operating rates, leading to increased demand for phthalic anhydride. Looking ahead, the escalating geopolitical crisis in the Middle East and the surge in raw material prices, coupled with rising phthalic anhydride costs and increased supply and demand, suggest that phthalic anhydride prices are expected to rise significantly in the future.

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