Phthalic Anhydride Market Hits Record High Amid Strong Cost Push (Sep 4–10, 2026)

1. Key Market Focus This Week

   1. Rising costs strengthened cost-driven momentum, pushing phthalic anhydride (PA) market prices higher.

   2. The ongoing US-Iran conflict and associated supply chain disruption risks led to significant price surges in crude oil and commodity futures markets.

   3. Expanding losses in downstream industries have increased resistance to PA market prices.

2. Weekly Market Analysis

Specifically, this period saw rising prices for Jiangsu-based ortho-process PA, with the price fluctuation range at 9,400–9,900 CNY/ton. Hebei-based naphthalene-process PA prices also rose, with a fluctuation range of 8,450–9,400 CNY/ton. During this cycle, domestic PA market prices increased, primarily driven by cost-side factors. Within the week, influenced by rising international crude oil prices, commodity futures markets surged, creating a strong bullish sentiment. Additionally, substantial price hikes in raw materials—industrial naphthalene and ortho-xylene—strengthened cost-side support, driving significant increases in domestic PA market prices. However, amid rapid price advances, end-user demand remained cautious, with transactions mainly limited to essential needs.

3. Analysis of Market Influencing Factors

   1. Low capacity utilization rates in the PA industry.

   2. Strong cost-side drivers.

4. Next Week's Market Forecast

It is expected that the gap between PA production/sales and demand may widen next period. However, strong cost-side support will maintain upward pressure on costs. Nevertheless, anticipated supply increments from ortho-process PA may exert some downward pressure on the market. Key points to watch include:

1. Supply Side: Overall operating rates in the PA industry are expected to rise next period, alleviating tight supply conditions to some extent. Monitor the release of incremental supply from ortho-process PA.
2. Demand Side: Operating rates in the primary downstream plasticizer industry are expected to increase, leading to overall growth in consumption.
3. Cost Side: Cost expectations for ortho-process PA remain stable for now, but tight ortho-xylene supply continues to provide strong cost-side support for the ortho-process PA industry. Industrial naphthalene prices are expected to oscillate at high levels, maintaining stable cost expectations for the naphthalene-process PA industry.

For more weekly market analysis, please refer to the Chempricehub Information Weekly PA Report.