The price of phthalic anhydride fell from a high level in August

As of August 11th, the price of phthalic anhydride from neighboring countries was 8966.67 yuan/ton, a decrease of 3.41% from the high price of 9283.33 yuan/ton on August 1st. In August, crude oil prices experienced a wide consolidation, which was transmitted downstream. Industrial naphthalene prices fell from a high level, while ortho benzene prices remained stable and cost support weakened. Phthalic anhydride prices fell from a high level in August.
Phthalic anhydride market falls back from high levels
The tension in the Middle East continues to escalate on multiple fronts, with military conflicts, diplomatic games, and maritime security incidents intertwined, and there is no sign of easing in the short term. Crude oil prices have been broadly consolidated, with cost transmission from crude oil to xylene and then to ortho benzene in the entire aromatic hydrocarbon industry chain. Sinopec’s ortho xylene listing price has stopped rising and remained stable, while industrial naphthalene prices have weakened and the cost of phthalic anhydride raw materials has decreased; DOP、 Unsaturated resin market is consolidating at a high level, with downstream production dropping to around 51%, and demand support for phthalic anhydride weakening; The operating rate of phthalic anhydride enterprises is stable, and some maintenance facilities have resumed production. There is an expectation of an increase in the industry’s operating rate, and the market supply pressure will increase.
Reduced cost support for phthalic anhydride
The high-level consolidation of international crude oil in August directly transmitted to the aromatic hydrocarbon industry chain: as of August 11th, the listed price of ortho xylene was 8500 yuan/ton, which was temporarily stable compared to the price of ortho benzene on August 1st at 8500 yuan/ton. On August 11th, the price of industrial naphthalene dropped to 5400 yuan/ton, and raw material prices declined, weakening the cost support of phthalic anhydride.
Stable supply of phthalic anhydride, accumulated inventory
On the supply side, some maintenance facilities of phthalic anhydride manufacturers have resumed production, and the expected operating rate of phthalic anhydride enterprises has increased. The overall operating rate of the industry has remained stable at around 59%, and the overall operating rate is stable. However, the overall factory and port inventory is slowly accumulating, and the willingness of manufacturers to raise prices has decreased.
Weakened demand support for phthalic anhydride
As of August 11th, the DOP quotation is 8800.83 yuan/ton, which is a weak consolidation compared to the DOP price of 8800.83 yuan/ton on August 1st, and the price is stabilizing. The downstream plasticizer industry, due to poor shipping and profitability, only maintains rigid demand and price cutting procurement for phthalic anhydride. At the same time, industries such as terminal coatings and PVC products have entered a seasonal off-season, and the plasticizer industry has seen a decrease in production to 51%, further weakening demand. In addition, exports have also encountered certain obstacles. The demand support for phthalic anhydride has weakened, and the downward pressure on phthalic anhydride has increased.
Future forecast
Analysts believe that terminal demand is in the off-season, and downstream consumers are resistant to high priced raw materials. It is expected that rigid procurement will still be the main focus. Limited cost support: Industrial naphthalene prices are expected to weaken slightly, and the cost support for naphthalene phthalic anhydride will further weaken. Controllable supply pressure: The phthalic anhydride industry is expected to resume production and slowly accumulate inventory, but the overall inventory of the industry is still low, and the increase in available spot goods is limited, resulting in limited downward space for phthalic anhydride. It is expected that the phthalic anhydride market will continue to operate weakly in the short term, and the price center may continue to slightly decline.