Phthalic Anhydride Market Fluctuated Downward in April

According to the commodity market analysis system of SunSirs, as of April 22, the quoted price for OX-based phthalic anhydride stood at 8,983.33 RMB/ton. This represents a fluctuating decline of 4.60% compared to the price of 9,416.67 RMB/ton recorded on April 1. At the end of March, driven by geopolitical conflicts in the Middle East and rising raw material costs, the price of OX-based phthalic anhydride in East China briefly surged to the vicinity of 9,400 RMB/ton. However, entering the mid-to-late period of April, as ceasefire negotiations between the U.S. and Iran eased geopolitical risks and downstream demand failed to keep pace, the overall price level for phthalic anhydride shifted noticeably downward.

Phthalic anhydride costs were rising, while supply remained ample

Influenced by geopolitical crises in the Middle East, crude oil prices have consolidated at high levels; this trend has filtered downstream, driving up raw material costs. Furthermore, scheduled maintenance on OX production facilities—specifically at Yangzi Petrochemical in April and anticipated at Jinling Petrochemical in May—has led to widespread production shutdowns among manufacturers. This reduction in supply has provided support for OX prices, resulting in an upward trend. On April 22, Sinopec quoted OX at 9,400 RMB/ton—an increase of 400 RMB/ton (4.44%) compared to the price of 9,000 RMB/ton recorded on March 30. With OX prices on the rise, cost-side support for phthalic anhydride prices remains intact. However, a decline in industrial naphthalene prices during April has lowered production costs for naphthalene-based phthalic anhydride, thereby creating room for prices of this specific product to soften.

In April, the operating load of phthalic anhydride production facilities remained stable at 66%. The overall operating rate stabilized at a relatively high level, resulting in an ample supply of spot goods in the market. Supply-side factors have emerged as the dominant influence in the phthalic anhydride market; specifically, the high operating rates within the domestic industry have created significant supply pressure, weighing on market sentiment. However, inventory levels across various manufacturers generally remain low, which has, to some extent, offset the supply pressure resulting from these high operating rates.

Demand Side: DOP Prices Fluctuate and Consolidate

According to SunSirs' commodity market analysis system, as of April 22, the price of DOP stood at 10,233.33 RMB/ton. This represents a marginal decline of 0.25% compared to the price of 10,259.17 RMB/ton recorded on April 1, reflecting a period of volatile consolidation. Since the beginning of April, the market for plasticizers has shown signs of stabilizing following a period of weakness. Operating rates among DOP manufacturers have dropped to 56%; this reduction in factory output has, in turn, weakened the support provided by rigid demand for phthalic anhydride.

Market Outlook

According to the Phthalic Anhydride Product Data Analyst at SunSirs, the phthalic anhydride market lacks clear bullish drivers in the short term. Weak downstream demand, supply pressure resulting from high operating rates, and easing cost pressures in the naphthalene-based production sector are collectively constraining the potential for price appreciation. Conversely, tight supply of orthoxylene and low manufacturer inventory levels provide a certain degree of downside support for phthalic anhydride prices. Looking ahead, while production costs for phthalic anhydride have stabilized and support from essential downstream demand remains present, ample supply and declining operating rates within the plasticizer sector suggest that the market is likely to undergo a period of weak consolidation.

SunSirs has been continuously tracking price data for over 200 commodities for nearly 20 years, please contact support@sunsirs.com for subscription.