Consolidation of plasticizer DOP prices after rising this week

According to the Commodity Market Analysis System of the Business Society, as of August 17th, the price of DOP was 11608.33 yuan/ton, an increase of 1.24% compared to the price of 11466.67 yuan/ton on August 10th; Compared to April 11th, the DOP price of 11600 yuan/ton has stabilized. The support from rising costs remains, while supply contraction and demand remain cold. This week, the price of plasticizer DOP has stabilized after rising.

Plasticizer companies have suffered losses in profits, plasticizer manufacturers have started operating at low loads, multiple plasticizer companies have shut down their equipment, and the low level of plasticizer operation has decreased to 40%, resulting in a contraction in plasticizer supply. Downstream demand is cold, high prices of plasticizers are difficult to pass down, and the accumulation of plasticizers has increased. Against the backdrop of weak supply and demand of plasticizers and cost support, there is still support for the rise of plasticizers.

The price of isooctanol has increased this week

According to the Commodity Market Analysis System of the Business Society, the price of isooctanol on August 17th was 11720 yuan/ton, an increase of 5.21% compared to the price of 11140 yuan/ton on August 10th. The production of domestic isooctanol units has not resumed, the supply of isooctanol is still tight, and the price of isooctanol has continued to rise. The inventory of isooctanol is low, and the market center has shifted upwards. This week, the price of isooctanol has surged, and the cost of plasticizer DOP raw materials has increased. As the price of isooctanol has risen to a high level, buying sentiment has become cautious. With the restart of isooctanol devices, the supply side of the isooctanol market is expected to be loose, and the sustained rise of isooctanol in the future is limited in support.

The market for raw material phthalic anhydride has stopped rising and fallen

According to the market analysis system for phthalic anhydride products of the Business Society, as of August 17th, the quotation for neighboring phthalic anhydride was 8650 yuan/ton, a decrease of 1.14% compared to the price of 8750 yuan/ton on August 10th. Affected by the decline in downstream production, the demand in the phthalic anhydride market has weakened, coupled with an increase in production in the phthalic anhydride industry, leading to an increase in market supply expectations and a downward pressure on the market. Moreover, the price of naphthalene phthalic anhydride in China has rapidly declined, and the price of ortho benzene has stabilized. The support for the price increase of ortho phthalic anhydride has weakened, and the price difference between ortho phthalic anhydride and naphthalene phthalic anhydride has widened. The downward pressure on ortho phthalic anhydride has increased. This week, the price of ortho phthalic anhydride has stopped rising and decreased, and the cost of plasticizer raw materials has decreased. The downward pressure on plasticizers has increased.

Future expectations

Analysts from Business Society’s plasticizer product data believe that the production of isooctanol has not yet resumed, the price of isooctanol continues to rise, the downstream demand for phthalic anhydride remains weak, the price of phthalic anhydride has stopped rising and fallen, and the support for the increase in DOP cost of plasticizer products has weakened; Downstream PVC procurement enthusiasm is cold, and demand for plasticizers is weakening; The operating rate of plasticizer enterprises is low, and the supply of plasticizers is tight. In the future, against the backdrop of weak supply and demand of plasticizers, the support for cost increases is weakened, and the support for plasticizer DOP increases is insufficient. It is expected that plasticizer DOP prices will fluctuate and consolidate at high levels.