SunSirs: Costs Fell, and DOP Prices Fluctuated and Fell Last Week

Plasticizer DOP prices fluctuated and fell 

According to the SunSirs commodity market analysis system, as of September 22nd, the price of DOP was 7,450.84 RMB/ton, a 0.78% decrease from the September 15th price of 7,509.16 RMB/ton. This fluctuating decline in DOP prices was due to DOP companies operating at high capacity, which was leading to increased DOP supply. Raw material prices, such as isooctanol and phthalic anhydride, fluctuated downward, reducing DOP costs and easing downward pressure on DOP prices. Downstream demand was unlikely to improve, with inquiries for DOP purchases remaining flat and demand for DOP weak. Declining costs have also led to a fluctuating decline in plasticizer prices.

The price of raw material isooctanol fluctuated and fell

According to the SunSirs commodity market analysis system, as of September 22nd, the price of isooctanol was 6,983.33 RMB/ton, a 0.95% decrease from the 7,050 RMB/ton on September 14th. This week, isooctanol plant installations remained stable at a high level, with the utilization rate remaining stable at 96%. New isooctanol production capacity was added, increasing supply. This week, the price of isooctanol fluctuated downward, driven by falling plasticizer costs and increasing downward pressure on DOP.

The price of raw material phthalic anhydride was weakly consolidating

According to the SunSirs commodity market analysis system, as of September 22, the price of OX based phthalic anhydride was 6,293.33 RMB/ton, a slight decrease of 0.11% from the price of 6,300 RMB/ton on September 15. The price of OX remained stable, while the price of industrial naphthalene stabilized after fluctuations. Phthalic anhydride cost support remained. Lasat week, the load of phthalic anhydride equipment decreased, the operating rate of phthalic anhydride enterprises declined, and the supply of phthalic anhydride decreased. This led to a decline in phthalic anhydride prices and plasticizer costs, which intensified downward pressure on the price of plasticizer DOP .

Market outlook

Analysts of SunSirs believe that, with regard to costs, isooctanol prices were fluctuating downwards, while phthalic anhydride prices were consolidating weakly, and downward pressure on plasticizer DOP costs remained. On the supply side, plasticizer plant operating rates were stabilizing at a high level, plasticizer output was increasing, and plasticizer supply was sufficient. On the demand side, the overall economic downturn, coupled with anti-involutionary competition and the elimination of outdated production capacity, was weakening downstream demand. Looking ahead, with strong supply and weak demand, coupled with weakening cost support, DOP prices are expected to fluctuate and decline.

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