Key Market Focus This Week
International crude oil prices plummeted, with a wait-and-see sentiment dominating the market.
The tight supply situation for the raw material ortho-xylene intensified.
Expectations of increased capacity utilization in the naphthalene-based phthalic anhydride industry exerted pressure on the market.
Weekly Market Analysis
| Figure 1: Price Trend Chart of Main Domestic Phthalic Anhydride Markets (Unit: CNY/ton) | |
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| Data Source: Chempricehub Information |
Specifically, during this period, the price of Jiangsu-based ortho-xylene process phthalic anhydride rose and then fell back, fluctuating within the range of 10,500–10,800 CNY/ton. Similarly, the price of Hebei-based naphthalene process phthalic anhydride also rose and then declined, fluctuating within the range of 9,900–10,300 CNY/ton. Overall, domestic phthalic anhydride prices surged before retreating, with cost-side factors becoming the primary driver of market movements. At the beginning of the week, supported by rising prices of the raw material ortho-xylene and tight spot supply of domestic phthalic anhydride, cost-driven factors pushed market prices higher. However, weak follow-up from high-level terminal demand constrained transactions at these elevated levels. By the second half of the week, the sharp drop in international crude oil prices caused the cost support from the upstream aromatics chain to collapse, intensifying market hesitation and leading to downward pressure on domestic phthalic anhydride prices.
Analysis of Market Influencing Factors
Supply conditions of the raw material ortho-xylene.
Capacity utilization rates in the domestic phthalic anhydride industry.
Next Week's Market Forecast
It is expected that the gap between production and sales demand for phthalic anhydride may widen in the next period. With insufficient cost support, combined with expectations of increased industry capacity utilization, the market faces a downward trend. Key areas to monitor include:
Supply Side: Overall operating rates in the phthalic anhydride industry are expected to rise. The ortho-xylene process sector will maintain a balance between supply and demand. While spot supply for the naphthalene process remains tight, it may ease slightly in the second half of the week.
Demand Side: Operating rates in the main downstream plasticizer industry are expected to decline. There are also forecasts for reduced activity in the unsaturated polyester resin (UPR) sector and lower export volumes, suggesting an overall decrease in consumption.
Cost Side: Weakening cost support is anticipated to become the primary factor driving the market down.
For more weekly market analysis, please refer to the Chempricehub Information Phthalic Anhydride Weekly Report.
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