Phthalic anhydride prices rose sharply

According to the commodity market analysis system of SunSirs, as of July 20, the quoted price for ortho-xylene-based phthalic anhydride stood at 8,666.67 RMB/ton. This represents a significant increase of 12.07% from the price of 7,733.33 RMB/ton on July 6 and a 10.40% rise from the price of 7,850 RMB/ton on July 10. In mid-July, the resurgence of geopolitical conflict in the Middle East drove up crude oil prices; this effect cascaded downstream, causing sharp increases in the prices of industrial naphthalene and ortho-xylene. Consequently, strengthened cost support led to a substantial rise in phthalic anhydride prices.

Phthalic anhydride prices rebounded after halting their decline

Geopolitical tensions have reignited as the situation in the Middle East escalates; Iran has once again closed the Strait of Hormuz, causing international oil prices to surge. This has driven up costs across the entire aromatics value chain—from crude oil to xylene and ortho-xylene. Sinopec raised its listed price for ortho-xylene, increasing production costs for phthalic anhydride (via the ortho-xylene route), while the price of industrial naphthalene also rose sharply, further driving up raw material costs. Meanwhile, the markets for DOP and unsaturated resins have warmed up; downstream sectors are engaging in concentrated restocking, and operating rates have risen to around 60%, providing demand support for phthalic anhydride. The upward trend in international crude oil prices has significantly boosted market confidence, driving up phthalic anhydride prices.

Phthalic Anhydride Costs Rose

The sharp rise in international crude oil prices following the escalation of US-Iran tensions has directly impacted the aromatics industry chain. As of July 20, the listed price for ortho-xylene stood at 8,200 RMB/ton—an increase of 400 RMB/ton from the 7,800 RMB/ton recorded on July 10—while industrial naphthalene was quoted at 5,400 RMB/ton. This significant surge in raw material prices has driven up the cost of producing phthalic anhydride; furthermore, rising crude oil prices have heightened expectations of further increases in raw material costs, thereby strengthening the cost support for phthalic anhydride.

Supply of Phthalic Anhydride Was Low

On the supply side, operating rates among phthalic anhydride producers have risen slightly, though the industry-wide rate remains below 60%; overall operations are consolidating at low levels. With both factory and port inventories low, manufacturers are strongly inclined to maintain price levels.

Demand for phthalic anhydride continued to provide support

According to the commodity market analysis system of SunSirs, the quoted price for DOP stood at 8,717.50 RMB/ton as of July 20, marking a significant increase of 9.30% from the 7,975.84 RMB/ton recorded on July 6. The off-season for the downstream plasticizer industry has ended, with operating rates gradually rising to 60%; demand for phthalic anhydride (PA) from downstream sectors has strengthened, and the rising price of finished DOP products has provided support for PA procurement prices.

Market Outlook:

Analysts at SunSirs observe the following: on the cost side, significant price surges in crude oil and ortho-xylene have driven a sharp rise in phthalic anhydride prices; on the demand side, the traditional off-season for downstream sectors is drawing to a close, and operating rates at downstream plants are gradually picking up. Overall, the combination of surging costs and recovering demand is expected to drive a volatile upward trend in phthalic anhydride prices in the short term.

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