On May 18, the phthalic anhydride market in Shandong showed a weak but stabilizing trend. The mainstream negotiated price for ortho-xylene-based phthalic anhydride was 8,500–8,700 CNY/ton, while that for naphthalene-based phthalic anhydride was 8,000–8,200 CNY/ton. The phthalic anhydride industry is seeing an increase in naphthalene-based production and a decline in ortho-xylene-based output. Crude oil prices are range-bound, providing cost support. Raw material ortho-xylene prices are stabilizing, and industrial naphthalene prices are also steady. Phthalic anhydride production costs remain stable. Downstream plasticizer prices are falling, and the operating rate of phthalic anhydride plants has declined, leading to reduced market supply. The operating rate of plasticizer producers remains stable, and there is still rigid demand support for phthalic anhydride. The ortho-xylene-based phthalic anhydride market is currently weak and stabilizing.

Chempricehub's assessment of phthalic anhydride: Bullish/Bearish rating: 0

Spot market: On May 18, the Shandong phthalic anhydride market was weak but stabilizing. The mainstream negotiated price for ortho-xylene-based material was 8,500–8,700 CNY/ton, and for naphthalene-based material, 8,000–8,200 CNY/ton. Current factors are mixed: on the cost side, crude oil is range-bound, and ortho-xylene and industrial naphthalene prices are stable, providing some cost support; on the supply side, phthalic anhydride producers have lowered operating rates, reducing market supply; on the demand side, downstream plasticizer prices are declining, but rigid demand support remains. Overall, the market is temporarily stable with no clear bullish or bearish driver.

Ortho-xylene: Bullish/Bearish rating: -1

The phthalic anhydride industry is currently seeing an increased share of naphthalene-based processes and a decreased share of ortho-xylene-based processes. As a core raw material for ortho-xylene-based phthalic anhydride, ortho-xylene faces significant demand suppression. Combined with the weak performance of the phthalic anhydride market, ortho-xylene prices are under pressure, presenting a generally bearish impact.

Industrial naphthalene: Bullish/Bearish rating: 1

Benefiting from the rising share of naphthalene-based processes in the phthalic anhydride industry, industrial naphthalene, as the core raw material for naphthalene-based phthalic anhydride, sees notably increased market demand. This provides strong support for industrial naphthalene prices, presenting a generally bullish impact.