Weekly Report: Phthalic Anhydride Market Decline

This week, the phthalic anhydride (PA) market experienced a decline. According to the Business Society Commodity Price Analysis System, as of September 13th, the price of ortho-phthalic anhydride was ¥7,362.50/ton, down from ¥7,462.50/ton on September 6th, representing a 1.34% decrease. During the same period, the price of o-xylene dropped by ¥300/ton to ¥7,400/ton, a 3.90% decline. With the reduction in costs, the phthalic anhydride market has continued its downward trend. Domestic ortho-phthalic anhydride prices ranged between ¥7,200 and ¥7,400/ton (ex-factory), while naphthalene-based PA was priced at ¥7,100 to ¥7,200/ton.

Supply Side: Tightened Supply The supply of phthalic anhydride has tightened as a result of low operational load at domestic PA facilities. Many naphthalene-based PA plants have suspended production, while ortho-phthalic anhydride plants are operating at low capacities. PA manufacturers are facing shipping delays, with long wait times for deliveries, leading to increased upward pressure on PA prices due to supply constraints.

Raw Material Costs: Decline in O-Xylene Prices According to the Business Society’s commodity price analysis system, as of September 13th, the price of o-xylene dropped to ¥7,400/ton, down ¥300 from ¥7,700/ton on September 6th, a 3.90% decrease. Compared to the start of the month, where the price stood at ¥7,900/ton, this represents a drop of ¥500/ton, or 6.33%. This continued decline in o-xylene prices has further lowered the production cost of ortho-phthalic anhydride, adding significant downward pressure on the PA market.

Demand Side: DOP Market Recovery As of September 13th, the price of dioctyl phthalate (DOP) was ¥8,501.25/ton, up 0.44% from ¥8,463.75/ton on September 8th. However, compared to the beginning of the month (September 1st), the price is down 2.58% from ¥8,726.25/ton. This week saw a rebound in DOP prices. With the continued decline in raw material prices, profit margins in plasticizer production have expanded. Consequently, downstream DOP manufacturers have seen improved gross margins compared to August, resulting in expectations of increased operational rates and rising demand for PA.

Market Outlook: According to Business Society’s phthalic anhydride product analyst, the future market for ortho-phthalic anhydride is expected to stabilize and rebound. The key factors driving this outlook are:

Costs: The price of o-xylene has dropped significantly, reducing PA production costs.

Supply: PA manufacturers are operating at reduced capacity, tightening the supply of PA.

Demand: The DOP market is recovering, with rising operational rates and increased demand for PA.

Based on these factors, it is anticipated that the market for ortho-phthalic anhydride will stop its decline and begin to rebound in the near future.

SNOWHITE CHEMICAL: Industry Leadership SNOWHITE CHEMICAL is the largest phthalic anhydride seller in China, solidifying its position as a leader in the domestic market. Our extensive network, advanced production capabilities, and strategic partnerships enable us to consistently meet the needs of our clients, even in fluctuating market conditions. SNOWHITE CHEMICAL is committed to delivering high-quality products and exceptional service, making us the trusted partner for phthalic anhydride in China and beyond. We continue to adapt to market trends and ensure a stable supply chain to support the growing demand across various industries.