Weak buying interest; Phthalic Anhydride (PA) market declines

1. Today's Summary

① Domestic phthalic anhydride (PA) market prices trended downward gradually.

② Today, the domestic PA capacity utilization rate stabilized at 59%.

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 PA produced via the o-xylene process in Jiangsu was 10,100 CNY/ton, a decrease of 100 CNY/ton from the previous trading day, consistent with morning expectations. The domestic PA market exhibited a gradual downward trend. Demand-side factors have returned to dominate the market; weak end-user demand has constrained transaction follow-through. A wait-and-see sentiment prevails, leading to the observed gradual decline.

3. Production Dynamics

Today, the domestic PA capacity utilization rate remained stable at 59%, with operating units maintaining steady production. Regarding profitability, raw material o-xylene prices were stable, while the East China market price for o-xylene process PA declined, resulting in a theoretical industry profit of 346 CNY/ton for this process. In Hebei, naphthalene process PA prices fell, while tender prices for industrial naphthalene remained temporarily stable, leading to a theoretical industry loss of 165 CNY/ton for this process.

4. Price Forecast

Currently, persistently weak end-user demand continues to constrain market transactions. Meanwhile, domestic PA capacity utilization remains relatively stable, subjecting the market to ongoing shipping pressure. It is expected that short-term domestic PA market prices may continue to probe lower levels.

5. Related Products Status

o-Xylene Market: Prices for o-xylene in the East China region remained stable, referencing approximately 9,850 CNY/ton for ex-factory pickup. Available spot inventory for circulation is limited and concentrated, indicating strong market control by key players. Major petrochemical plants maintained stable prices, contributing to overall market stability.

DOP Market: Today, raw material octanol prices were stable, but DOP market prices continued to slide. Buying activity was lackluster, with downstream users maintaining only small-volume purchases based on rigid demand. Industry participants remain cautious regarding the raw material market, resulting in insufficient overall transaction volume.

6. Data Calendar

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