SunSirs: Costs Decreased, and DOP Prices Fell from Their High Levels Last Week

DOP prices fell from their high levels last week 

According to SunSirs' commodity price analysis system, as of December 12th, the price of DOP was 7,150 RMB/ton, a fluctuating decrease from 7,209.16 RMB/ton on December 5th, a drop of 0.82%. The price of isooctanol also fluctuated downwards, leading to a decrease in DOP production costs.  Operating rates at DOP manufacturers decreased to 62%, resulting in reduced DOP production. The combination of lower production costs and reduced supply led to a decline in the high price of the plasticizer.

The operating rate of DOP plasticizer manufacturers decreased

Last week, increased maintenance at DOP manufacturers led to a decrease in operating rates, falling to 62%. DOP production last week was 28,000 tons, remaining stable compared to the previous week but lower than the previous month. The decrease in DOP production resulted in a decrease in supply, weakening the upward momentum of DOP prices.

The price of the raw material, isooctanol, fluctuated downwards

According to the business data analysis system of SunSirs, as of December 12th, the price of isooctanol was 7,033.33 RMB/ton, a decrease of 0.47% compared to the high of 7,066.67 RMB/ton on December 5th. Last week, fewer companies conducted maintenance on their isooctanol equipment, leading to a slight increase in the operating rate of isooctanol plants, reaching 75%. The supply of isooctanol was sufficient; however, the strong increase in propylene prices provided significant cost support for isooctanol. Despite the ample supply and cost support, the upward momentum for isooctanol prices remained. The fluctuating downward trend in isooctanol prices, coupled with the decrease in plasticizer costs, suggested that downward pressure on DOP prices persisted, while upward support weakened.

Market outlook:

According to SunSirs' plasticizer product data analyst, regarding costs, the price of isooctanol had fallen from its high level, weakening the upward pressure on DOP plasticizer costs; in terms of supply, the operating rate of plasticizer enterprises remained weak but stable, resulting in stable plasticizer production and sufficient supply. Looking ahead, with declining costs and ample supply coupled with limited demand, the price of DOP plasticizer is expected to consolidate weakly.

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