According to the business society commodity market analysis system, the domestic market price of ortho-phthalic anhydride produced by the benzene process has declined. As of the weekend, the quoted price of ortho-phthalic anhydride was 8387.5 RMB/ton, a decrease of 3.17% compared to the initial price of 8662.5 RMB/ton at the beginning of the week, and a decrease of 20.69% compared to the same period last year.
Supply Side: Stable operation of production facilities, normal supply of goods
Domestic production facilities for phthalic anhydride are operating steadily. Anhui Tongling's ortho-phthalic anhydride production has started normal shipments. Xinyang Group's 100,000-ton phthalic anhydride production facility is running smoothly, and Shandong Hongxin's phthalic anhydride is operating normally. The operating rate of domestic phthalic anhydride is currently over 60%, and the supply of phthalic anhydride is relatively normal. The recent downstream procurement situation is average, and some phthalic anhydride manufacturers are experiencing inventory accumulation, causing a decline in the market trend of phthalic anhydride.
Cost Side: Decline in ortho-benzene market, insufficient cost support
This week, the domestic price of ortho-benzene has declined. As of the weekend, the price of ortho-benzene was 8700 RMB/ton, a decrease of 5.43% compared to the initial price of 9200 RMB/ton at the beginning of the week. The supply of ortho-benzene is normal, and the production facilities are operating stably. During the National Day holiday, crude oil prices fell sharply, and the post-holiday mixed xylene prices declined. The prices of raw materials declined, which affected the domestic price trend of ortho-benzene. The decline in the ortho-benzene market has negatively impacted the phthalic anhydride market, leading to a decline in the price trend of phthalic anhydride.
Demand Side: DOP market mainly based on demand procurement
The downstream DOP market prices have declined. As of the weekend, the price was 10708.33 RMB/ton, a decrease of 4.03% compared to the initial price of 12200 RMB/ton at the beginning of the week. Domestic DOP enterprises are maintaining production, and the supply of DOP is normal. However, plasticizer manufacturers are experiencing profit losses, with low operating rates, and the supply of plasticizers remains tight. The downstream demand is weak, and the mainstream price of DOP has declined to 10700-10800 RMB/ton. The weak plasticizer market has negatively impacted the phthalic anhydride market, leading to a decline in the price trend of phthalic anhydride.
Looking forward, in the short term, the market price of ortho-xylene is expected to remain weak, with a decline in the plasticizer market being the main driver. The plasticizer industry's purchasing enthusiasm is not high, and as a result, the short-term expectation is for a slight decline in the market price of ortho-phthalic anhydride.