SunSirs: Costs Fell, Supply Increased, and DOP Prices Fluctuated Downward in August

Plasticizer DOP prices fluctuated and fell in August 

According to the SunSirs’ commodity market analysis system, as of August 12, the price of DOP was 7,809.16 RMB/ton, a 1.84% decrease from the price of 7,955.83 RMB/ton on August 1. DOP production capacity increased to 66% in August, leading to an increase in plasticizer production and a volatile decline in plasticizer prices. Downstream demand was unlikely to improve, with inquiries for DOP purchases remaining muted, and demand for DOP remained weak. The prices of the raw materials isooctanol and phthalic anhydride also fluctuated downward, supporting lower plasticizer costs. Reduced supply and lower costs had contributed to a volatile decline in plasticizer prices.

The price of the raw material isooctanol fluctuated downward in August

According to the SunSirs’ commodity market analysis system, as of August 12, the price of isooctanol was 7,383.33 RMB/ton, a 1.99% decrease from the 7,533.33 RMB/ton on August 1. The price of isooctanol fluctuated downward in August, driven by falling plasticizer costs and increasing downward pressure on DOP prices.

The price of phthalic anhydride, a raw material, fluctuated downward in August

According to the SunSirs’ Commodity Market Analysis System, as of August 12, the price of OX based phthalic anhydride was 6,533.33 RMB/ton, a 1.75% decrease from the price of 6,650 RMB/ton on August 1. On August 12, the price of OX was 6,500 RMB/ton, a 4.41% decrease from the beginning of the month. Phthalic anhydride costs declined, and with increased maintenance on phthalic anhydride equipment in August, the operating rate of phthalic anhydride plants decreased slightly. However, the supply of phthalic anhydride remained sufficient, and downstream plasticizer companies increased their equipment utilization, maintaining demand for phthalic anhydride. Declining costs led to a volatile decline in the price of phthalic anhydride in August.

Future outlook:

Analysts of SunSirs believe that, in terms of cost, prices for isooctanol and phthalic anhydride fluctuated downward, leading to a decrease in the cost of plasticizer DOP. On the supply side, plasticizer companies had resumed operations, increasing production and supply. On the demand side, the overall economic downturn, coupled with anti-involutionary competition and the elimination of outdated production capacity, had weakened downstream demand. Overall, with increased supply and lower costs, coupled with continued weak demand, DOP prices are expected to fluctuate downward in the future.

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