SunSirs: Costs Stopped Flling, and DOP Prices Stabilized After the Holiday

Plasticizer DOP prices stabilized after the holiday

According to the SunSirs Commodity Market Analysis System, as of October 13th, the price of DOP was 7,309.16 RMB/ton, a 0.79% decrease compared to the price of 7,367.50 RMB/ton ON October 1st. DOP prices stabilized after a slight decline after the holiday. DOP plant operating loads remained weak, with a slight decrease in operating rates and a decrease in DOP supply. The raw material isooctanol rebounded, while phthalic anhydride prices declined. DOP costs stabilized, easing downward pressure on DOP prices. Downstream demand was unlikely to improve, with inquiries for DOP purchases remaining flat and demand for DOP weak. Costs were supporting both weak supply and demand, and plasticizer prices stabilized after the holiday.

The price of the raw material isooctanol rebounded after the holiday

According to the SunSirs commodity market analysis system, as of October 13th, the price of isooctanol was 6,550 RMB/ton, a 1.75% decrease from thet price of 6,666.67 RMB/ton on October 1s. It rebounded 1.03% from the price of 6,483.33 RMB/ton on October 10th, after bottoming out. Due to maintenance at some companies' isooctanol equipment, the operating load of isooctanol plants had slightly decreased after the holiday, leading to a decrease in isooctanol supply. With isooctanol profits nearing the cost line, manufacturers were strongly willing to maintain prices, leading to a rebound in isooctanol prices. Plasticizer costs had also rebounded, and downward pressure on DOP had eased, increasing support for its rise.

The price of raw material phthalic anhydride fluctuated and fell after the holiday

According to the SunSirs commodity market analysis system, as of October 13th, the price of OX based phthalic anhydride was 6,216.67 RMB/ton, a 1.22% decrease from the price of 6,293.33 RMB/ton on October 1st. Following the holiday, OX prices and industrial naphthalene prices fell, reducing the cost support for phthalic anhydride. Phthalic anhydride equipment load decreased slightly after the holiday, and the operating rate of phthalic anhydride manufacturers decreased. Phthalic anhydride supply was sufficient, while downstream plasticizer prices fluctuated downward, with plasticizer manufacturers' equipment operating load decreasing, weakening demand support for phthalic anhydride. Declining plasticizer costs put significant downward pressure on plasticizer DOP prices after the holiday.

Market outlook

Analysts of SunSirs believe that, on the cost side, isooctanol prices rebounded, while phthalic anhydride prices havd weakened, easing downward pressure on plasticizer DOP costs and increasing support for price increases. On the supply side, plasticizer plant operating rates declined slightly, leading to reduced plasticizer output and supply. On the demand side, the overall economic downturn, coupled with anti-involution competition and the elimination of outdated production capacity, had weakened downstream demand. As for the future market, due to the weak supply and demand coupled with increased cost support, it is expected that the price of plasticizer DOP will stop falling and stabilize.

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