Rising Cost Pressures Drive Phthalic Anhydride Market Prices Higher (October 12–15, 2026)

1. Market Focus This Week

1. Tight supply of the feedstock, ortho-xylene (OX), continues. The operating rate of the domestic phthalic anhydride (PA) industry using the OX process has declined, exacerbating the shortage of OX-process PA supply in Jiangsu Province.
2. Maintenance shutdowns at naphthalene-process PA units have increased, leading to tight supply of naphthalene-process PA.
3. Rising prices for the feedstock OX provide strong cost-push pressure, driving up market prices.

2. Weekly Market Analysis

Specifically, during this period, the market price of OX-process PA in Jiangsu rose, fluctuating within a range of 10,200–10,600 CNY/ton. The market price of naphthalene-process PA in Hebei also increased, with fluctuations ranging from 9,200 to 9,600 CNY/ton. Overall, domestic PA market prices trended upward, primarily driven by cost-side factors. Insufficient supply of the feedstock OX led to a continuous decline in the operating rate of the domestic OX-process PA industry. Combined with reduced production at Guolei Chemical's PA unit, the supply of OX-process PA tightened further, significantly aggravating the shortage in Jiangsu. This became the primary driver behind the upward push in the current PA market cycle. Amidst the tight supply of OX, strong cost-driven momentum fueled bullish sentiment, causing rapid price increases. However, weak demand follow-through placed pressure on high price levels. Negative feedback from end-users gradually permeated the market. Additionally, as previously shut-down OX-process PA units in Jiangsu restarted, market sentiment shifted bearish. Naphthalene-process PA prices led the decline, and weekly transaction volumes shrank noticeably compared to the previous week.

3. Analysis of Market Influencing Factors

1. Supply status of the feedstock, ortho-xylene (OX).
2. Operating rates within the domestic phthalic anhydride industry.

4. Next Week's Market Forecast

It is expected that the gap between PA production and consumption may widen in the next period. There are expectations for an increase in the operating rate of the domestic PA industry; however, under negative demand feedback, market prices will face downward pressure. Key areas of focus include:

1. Supply Side: The overall operating rate of the PA industry is expected to rise next period. The tight supply situation for OX-process PA in East China may ease.
2. Demand Side: The operating rate of downstream plasticizers is expected to grow. Conversely, the unsaturated polyester resin (UPR) industry and export volumes are expected to decline. Despite these mixed signals, overall consumption is projected to see a net increase.
3. Cost Side: Cost conditions for OX-process PA are expected to remain stable, but due to the tight supply of OX, cost support for the OX-process PA industry remains strong. Industrial naphthalene prices are expected to fluctuate at high levels, maintaining strong cost support for the naphthalene-process PA industry.

For more detailed weekly market analysis, please refer to the Phthalic Anhydride Weekly Report by Chempricehub Information.