May 15 Report

On May 15, the East China phthalic anhydride (PA) market exhibited weak consolidation. Domestic ortho-xylene (OX)-based PA was quoted at 8500–8700 RMB/ton, while naphthalene-based PA was priced at 8000–8200 RMB/ton. The naphthalene-based PA market strengthened, whereas OX-based PA weakened. Crude oil prices remained range-bound, providing cost support. Industrial naphthalene prices stabilized, and OX was quoted at 9300 RMB/ton, with OX prices also stabilizing. PA production costs declined as OX prices held steady. OX plants underwent maintenance shutdowns, reducing OX supply but still supporting upside potential. On the demand side, plasticizer prices stabilized, with plasticizer plant operating rates rising slightly. Downstream buyers maintained just-in-time (JIT) procurement, with PA purchased on a demand-driven basis, sustaining demand support. PA plant operating rates declined, leading to reduced PA supply, and PA inventories remained low. The market is expected to maintain a weak consolidation trend in the near term.

Chempricehub Comment on Phthalic Anhydride

Bull/Bear Score: 0
Currently, the East China PA market is under weak consolidation. On the cost side, steady OX prices have led to a decline in PA production costs, creating a mild bearish factor. However, on the supply side, PA plant operating rates have fallen, reducing supply, and inventories are low. Meanwhile, downstream plasticizer operating rates have slightly increased, supporting demand through JIT procurement. The bullish and bearish factors offset each other, and the market is expected to remain weakly consolidative, with a neutral impact on prices.

Ortho-Xylene (OX)

Bull/Bear Score: +1
OX is currently quoted at 9300 RMB/ton, with prices generally stable. Plant maintenance shutdowns have tightened supply, and with demand support from downstream PA, OX prices still have upside potential, presenting a mildly bullish outlook.

Industrial Naphthalene

Bull/Bear Score: 0
Industrial naphthalene prices are stable. Although naphthalene-based PA market has strengthened, it has not led to significant changes in industrial naphthalene demand. There are no clear bullish or bearish drivers on the supply-demand side, resulting in a neutral price impact.

Plasticizers

Bull/Bear Score: 0
Plasticizer prices remain stable, with plant operating rates slightly increasing. Downstream procurement of PA remains demand-based, with no significant supply-demand imbalance, leading to a neutral price effect.

Crude Oil

Bull/Bear Score: 0
Crude oil prices are trading in a range, providing stable cost support for downstream chemicals. No clear bullish or bearish drivers are evident, resulting in a neutral impact on prices.