SunSirs: Costs Fell, and DOP Prices Fluctuated and Fell

Plasticizer DOP prices fluctuated and fell 

According to the SunSirs Commodity Market Analysis System, as of October 27th, the price of DOP was 7,109.16 RMB/ton, a 1.39% decrease from the price of 7,209.17 RMB/ton on October 20th. DOP prices fluctuated downward this cycle. DOP plants operated at less than 60% capacity, with a slight decrease in utilization rates. This led to a decrease in DOP production and supply. Raw material isooctanol prices fluctuated downward, and phthalic anhydride prices declined weakly, reducing DOP costs and increasing downward pressure on DOP prices. Downstream demand was unlikely to improve, and DOP demand and transaction volume were weak. Declining costs, coupled with weak supply and demand, led to a volatile decline in plasticizer prices this cycle.

The price of the raw material isooctanol fluctuated downward

According to the SunSirs commodity market analysis system, as of October 27th, the price of isooctanol was 5,883.33 RMB/ton, a 6.37% decrease from the previous week's price of 6,283.33 RMB/ton on October 20th. Due to maintenance on some companies' isooctanol equipment, the operating rate of isooctanol plants had slightly decreased, with the utilization rate below 90%, resulting in a decrease in isooctanol supply. Propylene prices had fallen, reducing isooctanol costs. This cycle's decrease in isooctanol supply, coupled with lower costs, had led to a volatile decline in isooctanol prices. Plasticizer costs had also fluctuated, increasing downward pressure on DOP prices.

The price of raw material phthalic anhydride fluctuated and fell

According to the SunSirs Commodity Market Analysis System, as of October 27, the price of OX based phthalic anhydride was 5,983.33 RMB/ton, a 0.83% decrease from the October 20 price of 6,033.33 RMB/ton. This cycle, OX prices remained stable, while industrial naphthalene prices consolidated weakly. Phthalic anhydride costs were insufficiently supported. Phthalic anhydride equipment loads rebounded slightly this cycle, with phthalic anhydride plant operating rates increasing. Phthalic anhydride supply was sufficient, while downstream equipment operating loads decreased, weakening demand support for phthalic anhydride. This weakening demand support led to a volatile decline in phthalic anhydride prices this cycle. The decline in phthalic anhydride prices, coupled with lower plasticizer costs, increased downward pressure on plasticizer DOP prices this cycle.

Market outlook

Analysts at SunSirs believe that, on the cost side, fluctuating prices for isooctanol and phthalic anhydride increased downward pressure on the cost of plasticizer DOP. On the supply side, the operating rate of plasticizer companies had slightly decreased, resulting in reduced production 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. In the future market, with both supply and demand weak and costs falling, it is expected that the price of plasticizer DOP will fluctuate and fall.

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