SunSirs: Costs Fell and Supply Decreased, Phthalic Anhydride Prices Rebounded in August

Phthalic anhydride market rebounded in August 

According to the SunSirs Commodity Market Analysis System, as of August 29th, the price of OX based phthalic anhydride was 6,300 RMB/ton, a 5.26% decrease from the 6,650 RMB/ton on August 1st. In August, OX prices fluctuated downward, while industrial naphthalene prices bottomed out and rebounded, providing significant cost support for phthalic anhydride. Phthalic anhydride equipment utilization remained low in August, with phthalic anhydride plant operating rates around 60%. This reduced phthalic anhydride supply led to a volatile decline in downstream plasticizer prices, while plasticizer plant operating rates remained high. Phthalic anhydride demand remained strong. Reduced supply and lower costs led to a bottoming out and rebound in phthalic anhydride prices in August.

Phthalic anhydride costs fell, supply decreased

At the end of August, Sinopec's OX price was 6,300 RMB/ton, a 7.35% decrease from the 6,800 RMB/ton price at the beginning of August. Industrial naphthalene prices rebounded, OX prices fell, and phthalic anhydride costs rebounded, easing downward pressure on phthalic anhydride and leading to a decline in prices. At the end of the month, naphthalene based phthalic anhydride prices were 6,100-6,200 RMB/ton, and OX based phthalic anhydride prices were 6,200-6,300 RMB/ton. Phthalic anhydride equipment operating rates remained low in August, with phthalic anhydride plants operating at around 60%, resulting in a decrease in phthalic anhydride supply.

Demand Side: Downstream construction was consolidating at a high level, and DOP prices  fluctuated and fell

According to the SunSirs commodity market analysis system, as of August 29, the price of DOP was 7,617.50 RMB/ton, a 4.25% decrease from the August 1 price of 7,955.83 RMB/ton. Declining costs intensified downward pressure on DOP prices. DOP companies saw high operating loads consolidations in August, and increased DOP production and phthalic anhydride demand in August provided further support for phthalic anhydride's upward trend.

Market Forecast

Analysts of phthalic anhydride product data of SunSirs believe that on the demand side, plasticizer manufacturers were operating at high levels, increasing plasticizer production and rebounding phthalic anhydride demand. On the supply side, phthalic anhydride manufacturers were operating at low capacity, reducing phthalic anhydride supply. Regarding costs, OX prices fell sharply, while industrial naphthalene prices had bottomed out and rebounded, leading to a rebound in phthalic anhydride costs. Looking ahead, with reduced phthalic anhydride supply and recovering demand, coupled with a rebound in costs, it is expected that the price of phthalic anhydride will bottom out and rebound in the future.

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