Production: The average operating load of domestic DOTP plants was 60.86% this period.
Cost: The average price of the main raw material, Shandong n-octanol, declined, as did the average price of PTA.
Profit: The theoretical profit for sample DOTP enterprises averaged approximately 292 RMB/ton this week.
| Product | Region/Category | Current Period Average | Previous Period Average | Change in Value | Change in Percentage | Unit |
|---|---|---|---|---|---|---|
| N-octanol | Shandong | 9138 | 9500 | -362 | -3.81% | RMB/ton |
| PTA | East China | 7016 | 7112 | -96 | -1.35% | RMB/ton |
| DOTP | Zhejiang | 10333 | 10630 | -297 | -2.79% | RMB/ton |
| DOP | Zhejiang | 10350 | 10650 | -300 | -2.82% | RMB/ton |
Data Source: Chempricehub Information
The domestic DOTP market primarily trended downward with weak momentum during this period until trading volumes recovered on Thursday. Low-priced inventory gradually diminished, with mainstream quoted prices in the Zhejiang region ranging from 10,100 to 10,600 RMB/ton within the week.
In the early part of the cycle, easing geopolitical tensions led to a decline in crude oil prices, dragging down the costs of raw materials n-octanol and PTA, which created strong bearish pressure on the cost side. Market participants lacked confidence in the outlook, downstream pre-holiday stocking willingness was weak, and new order transactions were sluggish, with traders mostly executing short positions. Manufacturers had a stronger willingness to accept orders before the holiday, leading to frequent appearances of low-priced inventory and continued pressure on prices. On Thursday, geopolitical disturbances drove up the crude oil premium, triggering a rebound across the chemical sector and boosting market sentiment. Traders concentrated on covering short positions, combined with the release of downstream pre-holiday stocking demand, resulting in a surge in DOTP transactions. Industry players' willingness to hold prices increased, and quotes were generally raised in the afternoon, ending the nearly ten-day declining trend.
The capacity utilization rate of domestic DOTP plants decreased this period, with an average load of around 61%.
The ex-factory price of DOTP in the Zhejiang market was 10,150 RMB/ton on Thursday, a decrease of 500 RMB/ton compared to the previous Thursday.
The price of the main raw material, n-octanol, fell by 600 RMB/ton on Thursday compared to the previous Thursday, while the other raw material, PTA, fell by 170 RMB/ton.
The domestic DOTP market is expected to bottom out and rebound next period, with prices in the Zhejiang region projected to range between 10,200 and 10,300 RMB/ton.
Cost Side: The profit margin for the core raw material, n-octanol, continues to narrow. Combined with expectations for downstream pre-holiday stocking, this may support the floor price for n-octanol. For the other raw material, PTA, there are expectations for increased supply, which may further intensify inventory accumulation pressure and suppress its price. However, geopolitical uncertainties remain, providing some support to PTA's cost side, so PTA prices are expected to maintain a sideways consolidation pattern. Overall, favorable factors for DOTP costs have increased, providing support for DOTP prices.
Demand Side: Rising crude oil prices have boosted market sentiment, driving the release of pre-holiday stocking demand for DOTP. Transactions of low-priced inventory surged, strengthening industry players' willingness to hold prices. However, end-user demand has not shown substantial improvement, and there will be fewer working days next week. As pre-holiday stocking winds down, downstream follow-through on higher-priced goods may become more cautious, thereby constraining DOTP prices.
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