The phthalic anhydride market hit bottom and rebounded in August

According to the Commodity Market Analysis System of Shengyi Society, as of August 29th, the price of phthalic anhydride in neighboring countries was 6300 yuan/ton, a fluctuating decrease of 5.26% compared to the price of 6650 yuan/ton on August 1st. In August, the price of phthalic anhydride fluctuated and fell, while the price of industrial naphthalene hit the bottom and rebounded. The cost support of phthalic anhydride was significant, and the equipment load of phthalic anhydride stabilized at a low level in August. The operating rate of phthalic anhydride enterprises was about 60%, and the supply of phthalic anhydride decreased. The downstream plasticizer market fluctuated and fell, and the equipment operating load of plasticizer enterprises stabilized at a high level. The demand support for phthalic anhydride still exists. Supply reduction and cost reduction led to a rebound in phthalic anhydride prices in August.
The cost of phthalic anhydride has decreased, and the supply has decreased
At the end of August, Sinopec’s ortho benzene quotation was 6300 yuan/ton, which fluctuated and fell by 7.35% compared to the ortho benzene quotation of 6800 yuan/ton at the beginning of August. The price of industrial naphthalene rebounded from the bottom, the price of ortho benzene fell, the cost of phthalic anhydride rebounded from the bottom, the downward pressure on phthalic anhydride weakened, and the price of phthalic anhydride fell. At the end of the month, the price of naphthalene phthalic anhydride was 6100-6200 yuan/ton, and the price of ortho phthalic anhydride was 6200-6300 yuan/ton. In August, the operating load of phthalic anhydride equipment was consolidated at a low level, and the operating rate of phthalic anhydride enterprises was about 60%, resulting in a decrease in phthalic anhydride supply.
Demand side: Downstream production starts at high levels, consolidation of DOP prices, fluctuation and decline
According to the Commodity Market Analysis System of Shengyi Society, as of August 29th, the DOP price was 7617.50 yuan/ton, a fluctuating decrease of 4.25% compared to the DOP price of 7955.83 yuan/ton on August 1st. Cost reduction and increasing pressure for DOP decline; In August, the operating load of DOP enterprises was consolidated at a high level, and the production of DOP increased. The demand for phthalic anhydride also increased, and the support for the rise in phthalic anhydride in August increased.
Future forecast
According to the data analyst of Shengyi Society’s phthalic anhydride products, in terms of demand, plasticizer companies are operating at a high level of consolidation, plasticizer production is increasing, and demand for phthalic anhydride is recovering; In terms of supply, the equipment operating load of phthalic anhydride enterprises has been consolidated at a low level, resulting in a decrease in phthalic anhydride supply. In terms of cost, the price of ortho benzene has dropped significantly, the price of industrial naphthalene has hit bottom and rebounded, and the cost of phthalic anhydride has hit bottom and rebounded. In the future, with a decrease in supply and a rebound in demand for phthalic anhydride, coupled with a bottoming out and rebound in costs, it is expected that phthalic anhydride prices will bottom out and rebound in the future.