① The decline in feedstock industrial naphtha prices has widened, causing the cost-side support for phthalic anhydride (PA) produced via the naphtha process to collapse.
② Today, the domestic capacity utilization rate for PA dropped to 56%.
Table 1: Summary of Domestic Phthalic Anhydride Prices (Unit: RMB/ton)
| Market | Process | Previous Trading Day | Current Trading Day | Change | % Change |
|---|---|---|---|---|---|
| Jiangsu | Ortho-xylene process | 10,000 | 9,900 | -100 | -1% |
| Jiangsu | Naphtha process | 9,200 | 8,800 | -400 | -4.4% |
| Guangdong | Ortho-xylene process | 9,650 | 9,600 | -50 | -0.5% |
| Guangdong | Naphtha process | 9,350 | 9,100 | -250 | -2.7% |
| Hebei | Ortho-xylene process | 9,800 | 9,800 | 0 | 0 |
| Hebei | Naphtha process | 9,000 | 8,600 | -400 | -4.4% |
| Key Downstream Product | |||||
| Jiangsu | DOP | 10,300 | 10,200 | -100 | -1% |
| Data Source: Chempricehub Information |
Taking the Jiangsu region as a benchmark, today's closing price for ortho-xylene process PA was 9,900 RMB/ton, down 100 RMB/ton from the previous trading day, consistent with morning expectations. Domestic PA market prices fell rapidly today. Tender prices for feedstock industrial naphtha plunged significantly, leading to a collapse in cost-side support for naphtha-process PA. Consequently, market prices for naphtha-process PA dropped sharply, exacerbating wait-and-see sentiment in the market.
Today, the domestic capacity utilization rate for PA declined to 56%, driven by maintenance shutdowns at units operated by Zhongshan Liancheng, Shandong Hongxin, and Henan Qirui, which reduced overall industry operating rates. Regarding profitability, feedstock ortho-xylene prices fell, and East China market prices for ortho-xylene process PA declined, resulting in theoretical profits of 238 RMB/ton for the ortho-xylene process sector. Meanwhile, Hebei naphtha-process PA prices fell alongside declining tender prices for feedstock industrial naphtha, leading to theoretical losses of 210 RMB/ton for the naphtha-process sector.
Currently, cost-side support for naphtha-process PA has collapsed due to falling feedstock prices. Additionally, terminal demand is weakening, compounded by early inventory clearance by PA producers ahead of holidays, further intensifying wait-and-see sentiment. Short-term domestic PA market prices are expected to continue trending downward.
Ortho-Xylene Market: In East China, ortho-xylene prices fell, with self-pickup quotes around 9,750 RMB/ton. Increasing pressure from downstream demand weighed on the market, causing the price center to drift slightly lower.
DOP (Dioctyl Phthalate) Market: Raw material costs declined, and DOP market prices followed suit. Suppliers faced pressure to reduce inventory, while buyers remained cautious, leading to sluggish transaction activity.
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