SunSirs: Cost Fell, and Phthalic Anhydride Prices Rebounded

Phthalic anhydride prices rebounded last week 

According to the SunSirs commodity market analysis system, as of August 22nd, the price of OX based phthalic anhydride was 6,250 RMB/ton, a 0.79% decrease from the price of 6,300 RMB/ton on August 15th. Last week, OX prices fluctuated downward, while industrial naphthalene prices stabilized. Phthalic anhydride cost support remained. Phthalic anhydride equipment load increased last week, and the operating rate of phthalic anhydride companies stabilized, indicating sufficient phthalic anhydride supply. Downstream plasticizer prices fluctuated downward, and the operating rate of plasticizer companies decreased, weakening demand support for phthalic anhydride. Increased supply and reduced demand, coupled with falling costs, led to a volatile decline in phthalic anhydride prices last week.

Phthalic anhydride costs fell, and supply was sufficient

As of August 15th, Sinopec's OX price was 6,300 RMB/ton, a 1.56% decrease from the weekend's price of 6,400 RMB/ton. Industrial naphthalene prices stabilized, while OX prices have fallen, reducing phthalic anhydride costs. However, downward pressure on phthalic anhydride persisted, with prices falling for naphthalene-based phthalic anhydride at 5,900-6,100 RMB/ton and for OX-based phthalic anhydride at 6,100-6,300 RMB/ton. Last week, phthalic anhydride equipment had resumed operation, and the operating rate of phthalic anhydride manufacturers had increased, indicating an adequate supply of phthalic anhydride.

Demand side: Downstream production declined, and DOP prices fluctuated and fell

According to the SunSirs commodity market analysis system, as of August 22, the price of DOP was 7,734.16 RMB/ton, a 0.32% decrease from the price of 7,759.16 RMB/ton on August 15. Last week, DOP plant operating rates decreased, resulting in lower DOP production and declining demand for phthalic anhydride, weakening the support for phthalic anhydride prices.

Market outlook

Analysts of phthalic anhydride product data at SunSirs believe that on the demand side, plasticizer plant operating rates decreased, reducing plasticizer output and thus reducing phthalic anhydride demand. On the supply side, phthalic anhydride plant equipment operating rates increased, increasing phthalic anhydride supply. Regarding costs, phthalate prices had fallen, reducing phthalic anhydride costs. Looking ahead, with increased phthalic anhydride supply and reduced demand, coupled with falling costs, phthalic anhydride prices are expected to consolidate at a low level.

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