Phthalic Anhydride Market Exhibits High-Level Volatility

1. Today's Summary

① Domestic phthalic anhydride (PA) prices based on the ortho-xylene process and naphthalene process are showing divergent trends.
② Today, the domestic PA capacity utilization rate remained stable at 52%.

2. Spot Market Overview

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

Using the Jiangsu region as a benchmark, today’s closing price for Jiangsu ortho-xylene-based PA was 10,400 CNY/ton, unchanged from the previous trading day and consistent with morning expectations. Today, domestic PA market prices showed divergent trends. The spot supply for ortho-xylene-based PA remains tight, maintaining a high-level sideways trend. In contrast, resistance to higher prices in the naphthalene-based PA market has led to a downward shift in transaction centers.

3. Production Dynamics

Today, the domestic PA capacity utilization rate remained stable at 52%, with production units operating steadily. Regarding profitability, raw material ortho-xylene prices were stable, and the East China market price for ortho-xylene-based PA remained steady, resulting in a theoretical industry profit of 370 CNY/ton for ortho-xylene-based PA. Meanwhile, Hebei naphthalene-based PA prices declined while industrial naphthalene prices rose, yielding a theoretical industry profit of 690 CNY/ton for naphthalene-based PA.

4. Price Forecast

Currently, tight supply of raw material ortho-xylene is providing strong support for ortho-xylene-based PA prices, which remain firm. However, weakening end-user demand and resistance to high prices are constraining transactions at elevated levels. It is expected that short-term ortho-xylene-based PA prices will continue to fluctuate at high levels, while the transaction center for naphthalene-based PA prices will tend to weaken.

5. Related Product Status

Ortho-Xylene Market: Prices for ortho-xylene in the East China region remained stable, referencing approximately 10,150 CNY/ton ex-works. Strong cost-side support from the upstream aromatics chain, coupled with tight spot supply, has kept major petrochemical plant prices stable. Downstream users are primarily fulfilling existing contract orders.

DOP Market: Today, some DOP markets continued to offer discounts to move inventory. Octanol prices continued to rise, and increasing crude oil prices boosted buying sentiment, improving the atmosphere for low-price transactions. End-users engaged in necessary purchases at lower prices. While fewer low-price offers appeared in the afternoon, follow-through transactions at higher prices remained insufficient.

6. Data Calendar

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