As of October 30th, the DBP price was 10750 yuan/ton, a fluctuating increase of 3.85% compared to the DOP price of 10351.67 yuan/ton on October 1st. In October, DBP prices first fluctuated weakly and steadily, but continued to rise in the second half of the year due to the pull of raw materials. The monthly line closed higher, and the price was in the high range of nearly a year. The domestic DBP market presents a pattern of “upward shift in price center, passive contraction of supply, squeezed profits, and rigid demand but resistance to high prices”.
The increase in DBP prices in October was not significantly driven by demand, and the core driving force came from the continuous price hikes of upstream raw materials. N-butanol and phthalic anhydride form a resonant rise within the month, significantly increasing the overall cost of DBP. The increase in DBP prices is mostly due to cost transmission.
The price of phthalic anhydride fluctuated and rose in October
As of October 30th, the price of phthalic anhydride from neighboring countries was 10733.33 yuan/ton, which fluctuated and increased by 7.15% compared to the price of phthalic anhydride on October 1st, which was 10016.67 yuan/ton. Affected by device maintenance and tight supply of goods; The phthalic anhydride market in October showed a strong upward trend, with prominent gains in some periods, which is the core factor driving DBP.
The price of n-butanol fluctuated and consolidated in October
On October 30th, the price of n-butanol was 8500 yuan/ton, which fluctuated and consolidated compared to the price of 8500 yuan/ton on October 1st. In October, n-butanol continued to operate at a high level, providing auxiliary cost support for DBP.
Supply side: Low production and tight supply
The overall operating load of DBP in China has decreased to 37.5%, a decrease of 7% compared to September; The contraction of profits has forced the shutdown and maintenance of equipment, and the industry has taken proactive measures to control the quantity; Although the quotation has been raised, the overall inventory pressure of the factory is not significant, and there is no significant selling pressure on the circulating spot goods, providing conditions for the quotation increase; Under the dual pressure of high costs and downstream price pressures, some devices choose to shut down or reduce their load, resulting in a “shrinking and rising price” characteristic on the supply side.
Future prospects
Analysts believe that the cost side of the DBP market in October drove prices up, but the demand side refused to pay for the increase, resulting in profit compression and triggering supply contraction. Under the balance between cost and supply, DBP prices fluctuated more in October. In the future, DBP’s upward support mainly comes from the raw material side. If n-butanol, isooctanol or phthalic anhydride experience unexpected increases again, DBP cost support will be further strengthened, and prices may be forced to continue to rise, but downstream acceptance will face greater challenges. The expected DBP prices in the future are expected to fluctuate and consolidate at a high level.
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