From the perspective of raw materials, Sinopec’s o-xylene price remains stable for the time being, while the market performance of industrial naphthalene, the raw material for naphthalene-based phthalic anhydride, is weak and prices continue to fall. The decline in raw material prices has weakened the cost support of phthalic anhydride, providing room for the price of naphthalene-based phthalic anhydride to fall.
From the perspective of supply and demand, the ortho-phthalic anhydride industry is operating at a high level, and the market supply is relatively sufficient, but the downstream demand is weak, which has led to an aggravated imbalance between supply and demand. Due to insufficient demand in the terminal market, the operating rate of downstream plasticizer companies of phthalic anhydride has not yet fully recovered to the high level before the New Year, and the consumption of phthalic anhydride is limited. The high operating rate of the phthalic anhydride industry has led to a continuous accumulation of inventory pressure. In the context of oversupply, the market price of phthalic anhydride is under downward pressure.
Affected by the imbalance between supply and demand and the downward trend in prices, the market sentiment of phthalic anhydride has also shown an increasingly depressed chain reaction. Traders and downstream companies are still pessimistic about the future market and have low purchasing enthusiasm. In order to avoid risks, some companies choose to reduce purchases or delay purchase plans, further exacerbating the bearish atmosphere in the market.
Looking ahead, affected by the sharp drop in the price of raw material industrial naphthalene, the cost support of the phthalic anhydride market has weakened, coupled with the strong wait-and-see sentiment in the market, the downward pressure on prices in the short term is significant. The price difference of phthalic anhydride from the ortho-naphthalene process is expected to widen, and the market shipment resistance is relatively large. The market supply side is still facing certain pressure, which further suppresses the price of phthalic anhydride. At the same time, the demand for the main downstream plasticizer market continues to be weak, making it difficult to form effective support for the market, and the counter-pressure effect remains unchanged. With the cautious mentality of the industry, the market trading atmosphere may continue to be light. On the whole, due to the superposition of multiple negative factors such as insufficient support on the cost side, weak demand and shipment resistance, it is expected that the center of gravity of the domestic phthalic anhydride market will continue to decline in the short term, and the overall trend will be mainly weak.
Post time: Mar-20-2025