Phthalic anhydride prices topped 10,000 RMB/ton in September

According to the commodity market analysis system of SunSirs, the quoted price for ortho-xylene-based phthalic anhydride stood at 10,083.33 RMB/ton as of September 11, marking a 7.27% increase from the 9,400 RMB/ton recorded on September 1. The market remained stable during the first half of last week but saw a concentrated surge starting September 9; consequently, the price level continued to climb, reaching a yearly high and pushing the average price past the 10,000 RMB/ton mark.

Raw Material Costs Rose

As geopolitical tensions in the Middle East escalate, crude oil prices have surged. This upward trend has rippled downstream, driving up the prices of ortho-xylene and industrial naphthalene; the listed price for ortho-xylene was raised to 9,850 RMB/ton, while industrial naphthalene rose to 7,700 RMB/ton. Consequently, production costs for phthalic anhydride—whether produced via the ortho-xylene or naphthalene route—have risen in tandem, bolstering manufacturers' willingness to raise prices.

Phthalic anhydride supply tightened

Enterprises such as Zhongshan Liancheng and Jining Chenguang have shut down for maintenance, while Jiangsu Sanmu remains offline; meanwhile, Fuhua Gulei Chemical has repeatedly postponed the startup of its 260,000-ton/year phthalic anhydride (PA) unit, causing the domestic industry's operating rate to drop to 58%. With low inventory levels, most manufacturers are in an oversold position, and holders of existing stock are strongly inclined to maintain high prices. However, expectations regarding new capacity from Guangdong Lingchuang and the potential restart of existing units—along with the release of new capacity—in South China are weighing on market sentiment, limiting the support for a rise in PA prices.

Insufficient demand support for phthalic anhydride

Operating rates among downstream plasticizer producers have dipped slightly; purchasing is driven primarily by immediate needs, with buyers wary of chasing higher prices. Downstream resistance to high phthalic anhydride prices is evident, leading to a preference for small, as-needed orders rather than large-scale stockpiling.

Market Outlook

Analysts at SunSirs monitoring phthalic anhydride (PA) data believe that a surge in raw material prices this week drove PA prices past the 10,000 RMB/ton mark. However, with PA prices already at a high level, there is limited room for further significant gains; coupled with weak downstream acceptance and increasing resistance to further sharp rises, PA prices are likely to fluctuate at high levels in the near term. Furthermore, as tensions in the Middle East ease and crude oil prices retreat, there is a significant risk that PA prices will fall back from their current highs.

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