SunSirs: Limited Spot Supply Drives Upward Trend in DOP Market

Recently, China's DOP market has continued its gradual upward trajectory, maintaining a generally favorable trading atmosphere. The primary drivers behind this price increase stem from persistently firm raw material costs, which provide positive support for the DOP market. Concurrently, recent spot market circulation has been relatively scarce, resulting in tight supply conditions. Propelled by these dual positive factors, the DOP market center of gravity has steadily shifted upward. As of January 20, DOP prices in the Shandong market stood at approximately 7,500 RMB/ton (ex-factory), while prices in the East China market ranged from 7,650 to 7,800 RMB/ton (ex-factory). In the South China market, DOP prices reached 7,900 to 7,950 RMB/ton (delivered to surrounding areas). The following analysis addresses the recent upward trend in DOP market prices.

From the cost perspective, inventory levels at major producers of upstream raw materials octanol and phthalic anhydride remain low, indicating tightening overall market supply. Under these conditions, producers are prioritizing shipments while maintaining firm pricing, driving up octanol and phthalic anhydride market prices. This cost-driven mechanism has positively impacted the DOP market. As of January 20, the price of octanol in the East China market stood at 7,050-7,100 RMB/ton, while the mainstream transaction price for phthalic anhydride in Jiangsu reached 6,300-6,350 RMB/ton.

From a supply-demand perspective: On the demand side, downstream buyers for DOP remain reasonably active. Driven by a “buy on the rise, not on the dip” mentality, both manufacturers and traders show strong inquiry and purchasing intentions, resulting in a relatively smooth overall trading atmosphere for DOP. Overall, influenced by both supply and demand factors, DOP market prices are trending firm.

Looking ahead, short-term inventories of raw materials like octanol and phthalic anhydride remain low, providing solid cost support for the DOP market. Combined with limited overall industry operating rates, spot supply remains tight, sustaining market price-supporting sentiment. Driven by the buy-high mentality, downstream buyers are expected to maintain essential purchases, keeping market transactions reasonably active. Close attention should be paid to upstream raw material price trends and changes in DOP plant operating rates.

As an integrated internet platform providing benchmark prices, on January 23, the benchmark price of DOP (Dioctyl Phthalate) according to SunSirs was 7534.17 RMB/ton, an increase of 2.84% compared to the beginning of the month (7325.84 RMB/ton).

Application of SunSirs Benchmark Pricing：

Traders can price spot and contract transactions based on the pricing principle of agreed markup and pricing formula (Transaction price=SunSirs price + Markup).

If you have any questions, please feel free to contact SunSirs with support@SunSirs.com.