SunSirs: Cost Decline Slowed, Supply Decreased, and DOP Prices Rebounded Last Week

Plasticizer DOP prices rebounded last week 

According to the SunSirs Commodity Market Analysis System, as of August 25th, the price of DOP was 7,759.16 RMB/ton, having initially fallen and then risen compared to the DOP price of 7,759.16 RMB/ton on August 15th. Last week, DOP plant operating rates declined slightly, plasticizer production remained stable, and downstream demand was unlikely to improve. Inquiries for DOP purchases were muted, and the improvement in DOP transaction volume was limited. The price of the raw material isooctanol fluctuated downward, while the price of phthalic anhydride fluctuated upward, slowing the decline in plasticizer costs. With stable supply and declining costs, plasticizer prices stabilized last week.

The price of the raw material isooctanol fluctuated downward last week

According to the SunSirs commodity market analysis system, as of August 25th, the price of isooctanol was 7,316.67 RMB/ton, a 0.81% decrease from the price of 7,376.67 RMB/ton on August 15th. Isooctanol plants resumed operations in August, with the utilization rate rising to 92% last week. Combined with new production capacity and increased supply, the price of isooctanol fluctuated downward last week. Declining plasticizer costs also increased downward pressure on DOP.

Prices of the raw material phthalic anhydride rebounded last week

According to the SunSirs commodity market analysis system, as of August 25th, the price of OX based phthalic anhydride was 6,333.33 RMB/ton, a 0.53% increase compared to the price of 6,300 RMB/ton price on August 15th. It also saw a 1.60% increase compared to the price of 6,233.33 RMB/ton price on August 20th. OX prices stabilized, while industrial naphthalene prices had risen. Phthalic anhydride costs had increased, and phthalic anhydride plant utilization rates had remained low. These rising costs, coupled with weak supply and demand, led to a rebound in phthalic anhydride prices last week. Rising prices for raw material phthalic anhydride and plasticizer costs had eased downward pressure on DOP prices last week.

Market outlook

Analysts of SunSirs believe that, in terms of cost, the price of isooctanol fluctuated downward, while the price of phthalic anhydride rebounded, leading to a stabilization of DOP plasticizer costs. On the supply side, plasticizer plant operating rates slightly decreased, while plasticizer output remained stable, ensuring 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 both weak supply and demand coupled with a stabilization of costs, DOP prices are expected to stop falling and consolidate in the future.

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