Cost-Driven Phthalic Anhydride Market Hits Record High (Oct 23–29, 2026)

1. Key Market Focus This Week

   1. High operating rates in the major downstream plasticizer industry continued, serving as a primary factor supporting the market.

   2. Domestic phthalic anhydride (PA) capacity utilization remained low, exacerbating tight spot supply for naphthalene-based PA.

   3. Tight supply of raw material ortho-xylene persisted, providing strong cost-side support for the o-xylene-based PA industry.

2. Weekly Market Analysis

Specifically, during this period, the market price of Jiangsu o-xylene-based phthalic anhydride rose, with the price fluctuation range at 10,400–10,700 CNY/ton; the market price of Hebei naphthalene-based phthalic anhydride also increased, with the price fluctuation range at 9,500–10,200 CNY/ton. During this cycle, domestic phthalic anhydride prices rose, driven primarily by cost-side factors. Affected by tight supply of raw material ortho-xylene, its price surged. Combined with significant increases in industrial naphthalene prices, this lifted production costs across the phthalic anhydride industry, becoming the main driver for market price hikes. Demand from the major downstream plasticizer sector continued to grow steadily throughout the week. Additionally, low capacity utilization in the domestic naphthalene-based PA industry intensified spot supply shortages, leading to expanded price gains for naphthalene-based PA. However, as the price gap between o-xylene-based and naphthalene-based PA narrowed, high-level transaction follow-through faced resistance.

3. Analysis of Market Influencing Factors

   1. Supply status of raw material ortho-xylene.

   2. Capacity utilization rate of the domestic phthalic anhydride industry.

4. Next Week Market Forecast

It is expected that the supply-demand gap for phthalic anhydride production and sales may widen in the coming period. The market price for o-xylene-based PA is expected to stabilize, while supply increments are anticipated for naphthalene-based PA, potentially leading to slight price declines for naphthalene-based PA sources in the longer term. Key focus areas include:

1. Supply Side: Overall operating rates in the PA industry are expected to rise next period. The o-xylene-based PA industry will maintain supply-demand balance, while spot supply for naphthalene-based PA remains tight, though it may slightly ease in the latter half of the week.
2. Demand Side: Operating rates in the main downstream plasticizer industry are expected to decline, along with reduced demand from the unsaturated polyester resin (UPR) sector and lower export volumes. Overall consumption is projected to decrease.
3. Cost Side: Cost conditions for o-xylene-based PA are expected to remain stable; however, tight ortho-xylene supply continues to provide strong cost-side support. Industrial naphthalene prices are expected to stabilize, maintaining cost support for the naphthalene-based PA industry.

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