Cost-Driven Price Increases Push Phthalic Anhydride Market Center Higher

1. Daily Summary

① The price of the raw material, ortho-xylene, has increased, driving the market center upward.

② Today, the domestic phthalic anhydride (PA) capacity utilization rate rose to 57%.

2. Spot Market Overview

Table 1: Domestic Phthalic Anhydride Price Summary (Unit: CNY/ton)

Taking the Jiangsu region as a benchmark, the closing price for Jiangsu ortho-process PA was 10,500 CNY/ton today, an increase of 100 CNY/ton from the previous trading day, consistent with morning price expectations. Domestic PA market prices rose today, with cost-side factors being the primary driver of the market rebound. Influenced by the price hike in raw material ortho-xylene and tight spot supply in the naphthalene-process PA industry, there was strong bullish sentiment, pushing market prices higher.

3. Production Dynamics

Today, the domestic PA capacity utilization rate increased to 57%, driven by the restart of one PA unit at Gulei Chemical, which boosted overall industry operating rates. Regarding profits, the rise in raw material ortho-xylene prices and the increase in East China ortho-process PA market prices resulted in a theoretical profit of 378 CNY/ton for the ortho-process PA industry. In Hebei, naphthalene-process PA prices rose while industrial naphthalene feedstock prices remained stable, leading to a theoretical profit of 985 CNY/ton for the naphthalene-process PA industry.

4. Price Forecast

Currently, strong cost support from the upstream aromatics industry chain persists. Additionally, the tight spot supply situation in the domestic naphthalene-process PA industry is difficult to alleviate, and the price gap between ortho- and naphthalene-process PA sources has narrowed. There is strong willingness among market participants to push prices up. It is expected that the center of gravity for domestic PA market prices may continue to rise in the short term.

5. Related Product Markets

Ortho-xylene Market: Prices in East China rose, referencing approximately 10,250 CNY/ton ex-works. Strong cost support from the upstream aromatics chain fueled bullish sentiment, pushing market prices higher.

DOP Market: Today, prices for raw materials 2-EH (2-ethylhexanol) and PA rose, increasing DOP production costs. Driven by this, market opening prices showed an upward trend. Coupled with secondary price hikes in related product DOTP, DOP transactions improved moderately, with end-users executing some rigid demand purchases.

6. Data Calendar

Table 2: Domestic Phthalic Anhydride Data Overview (Unit: 10,000 tons)