Key Market Focus This Week
Tight supply of the raw material, ortho-xylene, continues. Domestic capacity utilization in the ortho-phthalic anhydride (PA) sector has declined, leading to a tightening supply of ortho-PA in Jiangsu Province.
Expectations for scheduled maintenance of naphthalene-based PA units have increased, resulting in a tighter supply of naphthalene-based PA.
The price of the raw material, ortho-xylene, has risen. Strong cost-side drivers have pushed up market prices.
Weekly Market Analysis
| Figure 1: Trend of Mainstream Domestic Phthalic Anhydride Prices (Unit: CNY/ton) |
|---|
| Data Source: Chempricehub Information |
Specifically, during this period, the market price of ortho-PA in Jiangsu rebounded, fluctuating within a range of 9,700–10,250 CNY/ton. The market price of naphthalene-based PA in Hebei rose, fluctuating within a range of 8,800–9,100 CNY/ton. During this cycle, domestic phthalic anhydride prices increased, with cost-side factors serving as the primary driver for the upward trend. The persistent tight supply of ortho-xylene led to low capacity utilization in the ortho-PA industry and localized shortages. A strong bullish sentiment prevailed in the market, pushing prices higher.
Analysis of Market Influencing Factors
Supply status of the raw material, ortho-xylene.
Capacity utilization rate of the domestic phthalic anhydride industry.
Next Week's Market Forecast
It is expected that the supply-demand gap for phthalic anhydride production and sales will narrow in the next period. The price differential between ortho- and naphthalene-based PA sources is likely to shrink. With strong cost-side drivers, a rebound in phthalic anhydride market prices is anticipated.
Key points to watch:
Supply Side: Overall operating rates in the phthalic anhydride industry are not expected to change significantly in the next period. Industry capacity utilization will remain at a low level, and spot supply of naphthalene-based PA will be tight.
Demand Side: Support from the demand side remains adequate, but downstream buyers are cautious about chasing high prices, likely maintaining purchases primarily based on rigid demand.
Cost Side: Cost expectations for ortho-PA are rising, and the tight supply of ortho-xylene continues to provide strong cost support for the ortho-PA industry. Industrial naphthalene prices are also expected to strengthen, bolstering cost support for the naphthalene-based PA industry.
For more weekly market analysis, please refer to the Chempricehub Phthalic Anhydride Weekly Report.
Comments
0