Led by negative feedback from end-user demand, domestic phthalic anhydride market prices came under pressure. The price decline for naphthalene-based phthalic anhydride widened, and the price spread between ortho-xylene-based and naphthalene-based phthalic anhydride sources expanded again to 1,000 RMB/ton.

Demand-Driven Decline in Phthalic Anhydride Market Prices

Specifically, during this period, the market price of ortho-xylene-based phthalic anhydride in Jiangsu declined, with the price fluctuating between 8,700-8,850 RMB/ton. In Hebei, the naphthalene-based phthalic anhydride market price also fell, with prices ranging from 7,700-7,900 RMB/ton. In this cycle, domestic phthalic anhydride market prices declined, with demand-side factors still dominating the market. Persistent sluggishness in end-user demand, especially the significant drop in capacity utilization in the main downstream plasticizer industry, led to a notable contraction in phthalic anhydride demand. With the decline in demand, the tight spot supply situation in some regions for naphthalene-based phthalic anhydride eased, further heightening market cautiousness. As a result, the decline in the naphthalene-based phthalic anhydride market expanded, while the ortho-xylene-based phthalic anhydride market saw a relatively limited decline due to low industry operating rates. Weekly phthalic anhydride market trading volume decreased significantly compared to the previous week.

Entering this week, with persistently weak end-user demand and an increase in capacity utilization in the naphthalene-based phthalic anhydride industry, the tight spot supply situation in some regions for naphthalene-based phthalic anhydride gradually eased, further intensifying market caution. The price decline for naphthalene-based phthalic anhydride accelerated, while the ortho-xylene-based phthalic anhydride market saw limited declines due to high costs and low operating rates. This led to a renewed expansion in the price spread between ortho-xylene-based and naphthalene-based phthalic anhydride sources.