Market Price Divergence in Naphthalene-Based Phthalic Anhydride

1. Daily Summary

① The domestic phthalic anhydride (PA) market fluctuated at a high level, with tight supply of naphthalene-based PA strengthening upward price momentum.
② Today’s domestic PA capacity utilization rate declined to 53%.

2. Spot Market Overview

Table 1: Domestic Phthalic Anhydride Price Summary (Unit: RMB/ton)

Based on the Jiangsu region as a benchmark, today’s o-xylene-based PA in Jiangsu closed at 10,350 RMB/ton, remaining stable compared to the previous trading day and consistent with morning price expectations. The domestic PA market continued to fluctuate at high levels. Transaction volume for o-xylene-based PA remained thin, while demand-driven transactions improved in South China. However, spot supply of naphthalene-based PA was tight, strengthening the willingness of traders to push prices higher.

3. Production Dynamics

Today, domestic PA capacity utilization fell to 53%, driven by the temporary shutdown of Tongling Organic Chemicals’ PA unit, which lowered overall industry operating rates. Regarding profitability, raw material o-xylene prices remained stable, and East China o-xylene-based PA market prices were steady, resulting in theoretical profits of 320 RMB/ton for the o-xylene-based PA sector. In Hebei, naphthalene-based PA prices remained stable, and industrial naphthalene feedstock prices were also steady, yielding theoretical profits of 463 RMB/ton for the naphthalene-based PA sector.

4. Price Forecast

Currently, strong cost support from the upstream aromatic hydrocarbon chain persists, and tight spot supply in the naphthalene-based PA sector has strengthened sellers’ resistance to price cuts, providing certain support to the market. It is expected that short-term o-xylene-based PA prices will remain stable, while the price center for naphthalene-based PA is likely to rise.

5. Related Product Status

O-Xylene Market: Prices in East China remained stable, with reference self-pickup prices around 10,150 RMB/ton. Strong cost support from the upstream aromatic chain and tight spot supply persisted. Major petrochemical plants maintained stable pricing, and downstream buyers primarily executed existing contract orders.

DOP Market: Today, raw material octanol operated stably with smooth transactions. Supported by improved buying activity yesterday, low-price offers decreased in the DOP market. However, follow-up purchases at higher prices were insufficient, new order inquiries softened, downstream procurement remained cautious, and overall trading sentiment was moderate.

6. Data Calendar

Table 2: Domestic Phthalic Anhydride Data Overview (Unit: 10,000 tons)