Lead: Influenced by expectations of the signing of a Memorandum of Understanding between the US and Iran, international crude oil prices plummeted. Under the anticipation of a collapse in cost-side support, domestic energy and chemical product prices fell sharply, becoming the main factor driving the current market downturn.
Weakening Costs Lead to Divergent Price Trends for Phthalic Anhydride
Specifically, during this period, the market price of ortho-xylene-derived phthalic anhydride (o-PA) in Jiangsu declined, with the price fluctuation range between 8,550 and 8,700 RMB/ton. Meanwhile, the market price of naphthalene-derived phthalic anhydride (n-PA) in Hebei also fell, fluctuating within a range of 7,550 to 7,800 RMB/ton. During this assessment period, domestic phthalic anhydride market prices showed divergent trends. External macroeconomic factors became the main influence on the market, with o-PA prices trending down gradually, while n-PA prices first surged and then declined. Mid-week, influenced by the anticipated signing of the US-Iran Memorandum of Understanding, international crude oil led to a sharp decline in the commodity futures market, creating a pessimistic and wait-and-see atmosphere. The cost support from the upstream aromatics chain collapsed. Under the influence of expectations of a price reduction for the raw material ortho-xylene, the domestic o-PA market exhibited a gradual downward trend. However, the naphthalene-derived phthalic anhydride industry generally had oversold inventories. Coupled with increased plant maintenance shutdowns during the week, this exacerbated the tight spot supply situation, allowing n-PA market prices to rise initially. Nevertheless, due to negative feedback from downstream demand, the market retreated after the spike.
Recently, amid the sharp decline in n-PA market prices, the price spread between o-PA and n-PA materials widened again, expanding to 1,000 RMB/ton. Affected by this, downstream buyers released just-in-time purchase orders, further intensifying the tight spot supply situation for n-PA. Market prices for n-PA subsequently rebounded, thereby driving a narrowing of the price spread between the two types.
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