Phthalic anhydride prices diverge as oxo-process holds firm and naphthalene-process weakens at 53% capacity utilization

1. Daily Summary

① The domestic phthalic anhydride (PA) market via the ortho-xylene process maintained high-level fluctuations, while prices for PA produced via the naphthalene process trended weaker.

② Today’s domestic PA capacity utilization rate remained at 53%.

2. Spot Market Overview

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

Based on the Jiangsu region as a benchmark, today’s closing price for Jiangsu PA (ortho-xylene process) was 10,750 RMB/ton, stable compared to the previous trading day and consistent with morning expectations. Today’s domestic PA market showed divergent trends: supply tightness in the ortho-xylene process segment kept prices stable, while expectations of increased capacity utilization in the naphthalene process segment exerted downward pressure on that market.

3. Production Dynamics

Today, the domestic PA capacity utilization rate stabilized at 53%, with units operating steadily, resulting in stable industry operating rates. Regarding profitability, feedstock ortho-xylene prices remained stable, and East China PA (ortho-xylene process) market prices held steady, yielding a theoretical profit of 444 RMB/ton for the ortho-xylene process sector. In contrast, Hebei PA (naphthalene process) prices fell alongside declining industrial naphthalene feedstock costs, yet the theoretical profit for the naphthalene process sector stood at 1,335 RMB/ton.

4. Price Forecast

Currently, overall inventory levels in the domestic PA industry remain low. Tight spot supply in the ortho-xylene process segment persists, with strong willingness among traders to support prices, providing some market stability. However, weakening end-user demand and expectations of rising capacity utilization in the naphthalene process segment are weighing on the market. Short-term forecasts suggest stable markets for ortho-xylene process PA and a weakening trend for naphthalene process PA.

5. Related Product Updates

Ortho-Xylene Market: Prices in East China remained stable, with self-pickup quotes around 10,450 RMB/ton. Plant maintenance schedules have exacerbated supply tightness; however, major producers maintained stable pricing, and downstream buyers primarily fulfilled existing contract orders.

DOP Market: Prices declined today. Transaction activity has been sluggish in recent days, prompting mainstream sellers to offer discounts to move inventory. Nevertheless, buyer sentiment remains low, as end-users have sufficient stockpiles and adopt a cautious stance toward new purchases, resulting in a flat trading atmosphere.

6. Data Calendar

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