The phthalic anhydride market fluctuated and fell in July

According to the Commodity Market Analysis System of Shengyi Society, as of July 29th, the price of phthalic anhydride in neighboring countries was 6650 yuan/ton, a fluctuating decrease of 3.16% compared to the price of phthalic anhydride on July 1st, which was 6866.67 yuan/ton. In July, the price of ortho benzene fluctuated and fell, the price of industrial naphthalene fluctuated and fell, and the cost support of phthalic anhydride weakened. In July, phthalic anhydride equipment was repaired, and the operating rate of phthalic anhydride enterprises slightly decreased. The supply of phthalic anhydride was sufficient, and the downstream plasticizer market fluctuated and fell. The equipment operating load of plasticizer enterprises decreased, and the demand support for phthalic anhydride decreased. Supply is sufficient and demand is decreasing, resulting in a volatile drop in phthalic anhydride prices in July.
The cost of phthalic anhydride has decreased, and the supply is sufficient
As of July 29th, Sinopec’s ortho benzene quotation was 6800 yuan/ton, a decrease of 2.86% from the initial ortho benzene quotation of 7000 yuan/ton at the beginning of the month. The price of industrial naphthalene has fluctuated and fallen, the price of ortho benzene has fallen, the cost support of phthalic anhydride has decreased, and the downward pressure on phthalic anhydride has increased. The maintenance of phthalic anhydride equipment continued in July, with a production rate of 6.5-6.90% for enterprises and sufficient supply of phthalic anhydride. The sufficient supply has led to a decrease in costs, and the downward pressure on phthalic anhydride prices in July has increased.
Demand side: Downstream production decreases, DOP prices fluctuate and fall
In July, DOP enterprises saw a significant decrease in construction, with the construction rate dropping from 60% in June to around 40% in mid month, and slowly recovering in late month. According to the Commodity Market Analysis System of Shengyi Society, as of July 29th, the DOP price was 7967.50 yuan/ton, a fluctuating decrease of 3.53% compared to the DOP price of 8259.17 yuan/ton on July 1st. In July, DOP production decreased, plasticizer production decreased, and plasticizer prices fluctuated and fell. The production of plasticizers has decreased, the demand for phthalic anhydride is weak, and the price of phthalic anhydride has risen to support the decline.
Future forecast
According to the data analyst of Shengyi Society’s phthalic anhydride products, in terms of demand, plasticizer companies have seen a decline in production, resulting in a decrease in plasticizer output and weak demand for phthalic anhydride. At the end of July, plasticizer companies resumed production, leading to an increase in DOP demand; In terms of supply, the equipment maintenance of phthalic anhydride enterprises is still ongoing, and the supply of phthalic anhydride is sufficient. In terms of cost, the price of ortho benzene has decreased, the price of industrial naphthalene has fluctuated and fallen, and the cost of phthalic anhydride has decreased. In the future, the production of phthalic anhydride enterprises is relatively stable, the supply of phthalic anhydride is sufficient, downstream enterprises are resuming production, the demand for phthalic anhydride is recovering, and the cost of demand recovery is decreasing. It is expected that the price of phthalic anhydride will stop falling and rebound in the future.