SunSirs: The Positive News of Sino-US Trade Negotiations Led to a Rebound in DOP Prices Last Week

According to the commodity market analysis system of SunSirs, as of May 16, the price of DOP was 8200.83 RMB/ton, which rebounded from the price of DOP of 7859.17 RMB/ton on May 12, an increase of 4.35%. The operating rate of plasticizer DOP enterprises is temporarily stable.

The Sino-US trade talks have begun, tariffs have been temporarily eased, the demand for plasticizers is expected to rise, the price of isooctanol has rebounded, the price of phthalic anhydride has fluctuated and risen, the cost of plasticizers has risen, and the support for the rise in plasticizer prices has increased.

The Sino-US trade negotiations are good news

The Sino-US Geneva trade talks announced on the 12th: the United States canceled a total of 91% of the additional tariffs, and China correspondingly canceled 91% of the counter-tariffs; the United States suspended the implementation of 24% of the "reciprocal tariffs", and China also suspended the implementation of 24% of the counter-tariffs. Within 90 days, the reciprocal tariff rate of the two countries will be reduced to 10%. After taking the above measures, the two sides will establish a mechanism to continue to negotiate on economic and trade relations. With the start of the Sino-US economic and trade talks, international trade is expected to pick up, and demand for plasticizers is expected to pick up.

The price of raw material isooctanol rebounded last week

According to the commodity market analysis system of SunSirs, as of May 16, the price of isooctanol was 7443.33 RMB/ton, which rebounded by 3.62% from the price of 7183.33 RMB/ton on May 12. The Sino-US economic and trade talks have temporarily eased tariffs, and the demand for isooctanol is expected to pick up, and the price of isooctanol has bottomed out and rebounded; the operation of isooctanol manufacturers is stable, and the supply of isooctanol is sufficient. With stable supply and rising demand, the price of isooctanol has fluctuated and risen.

The price of raw material phthalic anhydride rebounded last week

According to the commodity market analysis system of SunSirs, as of May 16, the price of o-phthalic anhydride was 7066.67 RMB/ton, which rebounded by 1.44% from the price of phthalic anhydride of 6966.67 RMB/ton on May 12. The equipment of phthalic anhydride enterprises has resumed operation, the supply of phthalic anhydride is sufficient, the downstream demand is expected to pick up, the demand support for phthalic anhydride has increased, and the price of phthalic anhydride has rebounded.

Market outlook

Data analysts of plasticizer products at Sino-Business Network believe that in terms of cost, the price of isooctanol has rebounded, the price of phthalic anhydride has rebounded, and the cost of plasticizer DOP has increased; in terms of demand, the Sino-US economic and trade negotiations and the suspension of tariffs are good for international trade, and the demand for plasticizers is expected to pick up.

For the market outlook, there is hope in the Sino-US trade negotiations, and downstream demand is expected to pick up. With cost support and the expectation of demand recovery, the price of plasticizer DOP is expected to consolidate strongly in the future.

If you have any questions, please feel free to contact SunSirs with support@SunSirs.com.