Tight Supply of Naphtha-Based Feedstock Drives Market Price Increase (October 16–22, 2026)

1. Key Market Focus This Week

   1. High operating rates in the downstream plasticizer industry continue to be a primary factor supporting the market.

   2. The domestic phthalic anhydride (PA) industry’s capacity utilization remains low, exacerbating the tight spot supply of naphthalene-based PA.

   3. The shortage of feedstock ortho-xylene persists, providing strong cost-side support for ortho-xylene-based PA.

2. Weekly Market Analysis

Specifically, during this period, the market price of Jiangsu-based ortho-xylene-derived PA remained stable, with a fluctuation range of 10,350–10,600 CNY/ton. Meanwhile, the market price of Hebei-based naphthalene-derived PA rose, with a fluctuation range of 9,400–9,600 CNY/ton. This week, domestic PA market trends diverged: the ortho-xylene-derived PA market oscillated at high levels, while the naphthalene-derived PA market rebounded. Supply-side factors were the primary drivers of market movements. Due to persistently low operating rates in the domestic naphthalene-derived PA industry, combined with continuously rising capacity utilization in the key downstream plasticizer sector, the tight supply situation for naphthalene-derived PA intensified, driving its market price up rapidly. In the domestic ortho-xylene-derived PA market, expectations of increased supply pressured upper-end prices; however, the rise in naphthalene-derived PA prices provided some support, leading the market to enter a phase of high-level oscillation.

3. Analysis of Market Influencing Factors

   1. Supply status of feedstock ortho-xylene.

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

4. Next Week Market Forecast

It is expected that the gap between production and demand for phthalic anhydride may widen next period. Market prices for ortho-xylene-derived PA are expected to stabilize, while the tight spot supply situation for naphthalene-derived PA will persist, leading to an anticipated rebound in its market price.

Key areas to watch:

1. Supply Side: Overall operating rates in the PA industry are expected to increase next period. The tight supply of ortho-xylene-derived PA in East China may ease, but the supply gap for naphthalene-derived PA in Northern China will remain difficult to fill.
2. Demand Side: Operating rates in the key downstream plasticizer industry are expected to rise. However, demand from the unsaturated polyester resin (UPR) sector and export volumes are expected to decline, although overall consumption is projected to increase.
3. Cost Side: Cost expectations for ortho-xylene-derived PA remain stable. Nevertheless, the shortage of feedstock ortho-xylene continues to provide strong cost-side support for the ortho-xylene-derived PA industry. Industrial naphthalene prices are expected to remain stable, maintaining cost support for the naphthalene-derived PA industry as well.

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