Cost Collapse: Phthalic Anhydride Market Prices Decline (November 6–12, 2026)

1. Key Market Focus This Week

   1. The collapse of cost support from the upstream aromatics chain has become the primary driver of the market downturn.
   2. Weakening end-user demand has intensified a wait-and-see sentiment in the market.
   3. Expectations of increased capacity utilization in the naphthalene-based phthalic anhydride (PA) sector have put pressure on the market.

2. Weekly Market Analysis

Specifically, during this period, the price of ortho-xylene-based PA in Jiangsu Province declined, fluctuating within the range of 9,900–10,600 RMB/ton. Similarly, the price of naphthalene-based PA in Hebei Province fell, ranging between 8,900–9,800 RMB/ton. The domestic PA market experienced a downward trend this week, with cost-side factors serving as the primary influence. Within the week, the decline in international crude oil prices led to a collapse in cost support from the upstream aromatics supply chain, exacerbating the wait-and-see atmosphere. Prices for raw materials such as ortho-xylene and industrial naphthalene continued to drop, causing cost support to crumble. Consequently, pessimistic wait-and-see sentiment pervaded the domestic PA market, resulting in significant price declines despite low trading volumes, with the overall price center dropping sharply.

3. Analysis of Market Influencing Factors

   1. Supply conditions of the raw material, ortho-xylene.
   2. Capacity utilization rates in the domestic phthalic anhydride industry.

4. Next Week's Market Forecast

It is projected that the gap between supply and demand for phthalic anhydride may widen in the next period. With insufficient cost support combined with expectations of rising industry capacity utilization, the market is forecasted to decline. Key areas to watch include:

1. Supply Side: Overall operating rates in the PA industry are expected to increase next period. Inventory accumulation in the ortho-xylene-based PA sector is anticipated, while the tight supply situation in the naphthalene-based PA sector is expected to ease.
2. Demand Side: Operating rates in the downstream plasticizer industry are expected to rise. However, there are expectations of a decline in activity within the unsaturated polyester resin (UPR) industry and export volumes. Despite potential increases in export forecasts, overall consumption is projected to see modest growth.
3. Cost Side: Cost support is weakening and remains the primary factor driving the market downward.

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