SunSirs: Costs Fell, Supply Was Sufficient, and DOP Prices Fluctuated and Fell

Plasticizer DOP prices fluctuated and fell last week 

According to the SunSirs commodity market analysis system, as of August 18, the price of DOP was 7,734.16 RMB/ton, a 1.28% decrease from the price of 7,834.16 RMB/ton on August 10. DOP production utilization increased to 67% last week, indicating ample plasticizer production. However, downstream demand was unlikely to improve, with inquiries for DOP purchases remaining tepid, and demand for DOP remained weak. Raw material prices for isooctanol and phthalic anhydride fluctuated downward, supporting lower plasticizer costs. Sufficient supply and lower costs contributed to a fluctuating decline in plasticizer prices last week.

The price of raw material isooctanol fluctuated and fell last week

According to the SunSirs Commodity Market Analysis System, as of August 18, the price of isooctanol was 7,350 RMB/ton, a 1.12% decrease from the price of 7,433.33 RMB/ton on August 10. This week's isooctanol price saw a volatile decline, driven by lower plasticizer costs and increased downward pressure on DOP..

The price of raw material phthalic anhydride fluctuated and fell last week

According to the SunSirs Commodity Market Analysis System, as of August 18, the price of OX based phthalic anhydride was 6,250 RMB/ton, a 4.58% decrease from the price of 6,550 RMB/ton on August 10. The price of OX was 6,400 RMB/ton on August 18, a 3.03% decrease from the 6,600 RMB/ton price on August 10. Phthalic anhydride costs had fallen, and the utilization rate of phthalic anhydride equipment had slightly decreased to around 60%. Phthalic anhydride supply remained sufficient, leading to a volatile decline in phthalic anhydride prices last week. This cost reduction also led to a decline in the price of the plasticizer DOP.

Market outlook

Analysts of SunSirs believe that, in terms of cost, prices for isooctanol and phthalic anhydride had fluctuated downward, leading to a decrease in the cost of plasticizer DOP. On the supply side, plasticizer companies were operating at a high and stable level, with stable output and ample 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 On the demand side, the overall economic downturn, coupled with anti-involutionary competition and the elimination of outdated production capacity, had weakened downstream demand.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 ample supply and falling costs, coupled with continued weak demand, DOP prices are expected to fluctuate and decline in the future.

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