DOP prices fluctuated downward in May

According to the SunSirs Commodity Market Analysis System, as of May 28, the price of DOP stood at 9,250.83 RMB/ton. This represents a volatile decline from the price of 10,050.83 RMB/ton recorded on May 1—a drop of 7.96%. The domestic DOP market generally exhibited a trend of volatile decline; the primary factors driving this downward price trajectory were the weakening cost support from upstream raw materials, compounded by sluggish demand from downstream sectors.

Cost Side: Support from Raw Materials Weakened

In May, the price of the raw material isooctanol experienced a volatile decline.

According to SunSirs' Commodity Market Analysis System, as of May 28, the quoted price for isooctanol stood at 7,966.67 RMB/ton. This represents a volatile decline from the price of 8,800 RMB/ton recorded on May 1—a drop of 9.47%—and a volatile decline from the price of 9,066.67 RMB/ton recorded on May 9—a drop of 12.13%. The decline in propylene prices has led to reduced production costs. In terms of supply and demand, operating rates at isooctanol manufacturing plants have decreased, resulting in a tightening of supply; coupled with weak market demand, these factors have driven down isooctanol prices. As isooctanol prices continue their volatile downward trend, downward pressure on DOP prices has intensified.

Phthalic Anhydride Market: Weak and Consolidating

According to the SunSirs Commodity Market Analysis System, as of May 28, the quoted price for o-xylene-based phthalic anhydride stood at 8,906.67 RMB/ton. This represents a slight decline of 0.30% compared to the price of 8,933.33 RMB/ton recorded on May 1. With production costs on the decline, cost-side support for phthalic anhydride has weakened; meanwhile, operating rates among manufacturers have decreased, leading to a tightening of supply and mounting downward pressure on prices. As phthalic anhydride prices fall, the downward pressure on DOP prices is expected to intensify in the near future.

DOP Market Supply and Demand Analysis in May

Supply Side: Overall Supply Remains Ample

In May, the capacity utilization rate of the DOP industry stood at 52%, representing a month-on-month decline of 5 percentage points compared to April. Although production facilities at companies such as Fujian Chunda and Ningbo Aekyung were shut down, the supply side generally remained ample; consequently, some manufacturers opted to offer price concessions to facilitate sales and alleviate inventory pressure.

Demand Side: Persistently Weak, Driven Primarily by Essential Needs

Downstream users exhibit subdued purchasing sentiment, with activity largely confined to small-volume orders driven by immediate, essential requirements; consequently, acceptance of high-priced supplies remains low. The overall market trading atmosphere is lackluster, lacking sustained volume growth, and thus struggles to provide any effective upward impetus to prices.

Market Overview and Outlook

According to the plasticizer product data analyst at SunSirs, looking ahead to June, the DOP market is expected to continue facing significant downward pressure. As some previously idled production units resume operations, market supply is poised to increase; however, the pace of recovery on the demand side may fall short of expectations. Driven by the combined effects of weak cost support and sluggish demand, the market is projected to remain in a state of weak consolidation, with the potential for further price declines. It is recommended to closely monitor price trends for the raw material octanol, changes in industry operating rates, and the activation status of downstream demand.

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