The price of plasticizer DOP hit a new low for the year in August

According to the Commodity Market Analysis System of Shengyi Society, as of August 30th, the price of plasticizer DOP was 8726.25 yuan/ton, a decrease of 8.14% from the DOP price of 9500 yuan/ton on August 1st at the beginning of the month; Compared to the price of 12091.67 yuan/ton on January 1st at the beginning of the year, it has decreased by 27.83%. In the off-season of the plasticizer market in August, DOP prices continued their previous downward trend, hitting a new low for the year and the second largest monthly decline of the year.

According to the Commodity Market Analysis System of Shengyi Society, since June, the plasticizer market has entered the off-season, and DOP prices have continued to decline, with DOP prices experiencing an 8-week consecutive decline. At the end of August, the price of DOP rose slightly, and the DOP market showed a trend of rebounding and stopping the decline.

The cost of raw materials has decreased

According to the Commodity Market Analysis System of Shengyi Society, as of August 30th, the price of isooctanol was 7983.33 yuan/ton, a decrease of 11.30% from the price of 9000 yuan/ton on August 1st at the beginning of the month; The price of isooctanol decreased by 38.35% from the beginning of the year to 12950 yuan/ton. In the off-season of the August market, there were many inspections by isooctanol manufacturers, resulting in weak supply and demand for isooctanol. Downstream enterprises’ enthusiasm for purchasing isooctanol decreased, and isooctanol manufacturers lowered prices for shipments, causing a significant drop in isooctanol prices and reaching a new low for the year.

According to the Commodity Market Analysis System of Shengyi Society, as of August 30th, the price of phthalic anhydride produced by the phthalic anhydride method was 7587.50 yuan/ton, a decrease of 3.80% from the price of 7887.50 yuan/ton on August 1st at the beginning of the month. In August, domestic ortho phthalic anhydride was priced at 7500-7700 yuan/ton before leaving the factory, while domestic nano phthalic anhydride was priced at 7200-7300 yuan/ton before leaving the factory. During the off-season from June to August, the phthalic anhydride market continued to decline. In August, the price of industrial naphthalene rebounded and rose, and the naphthalene phthalic anhydride market slightly rebounded. The ortho benzene market fell sharply, and cost support decreased. The ortho benzene phthalic anhydride market fell. The demand for plasticizers has rebounded less than expected, and the support for the rise in phthalic anhydride has weakened, leading to a decline in phthalic anhydride prices.

Demand recovery falls short of expectations

According to the Commodity Market Analysis System of Shengyi Society, the rubber and plastic index on August 30th was 696 points, unchanged from yesterday, a decrease of 34.34% from the highest point of 1060 points during the cycle (March 14, 2012), and an increase of 31.82% from the lowest point of 528 points on April 6, 2020. (Note: The cycle refers to the period from December 1, 2011 to present). During the off-season of the rubber and plastic industry market from June to August, domestic rubber and plastic enterprises had more maintenance work, resulting in weak supply and demand in the domestic rubber and plastic market. In late August, the rubber and plastic index stopped falling and rebounded, indicating a trend of recovery in the rubber and plastic industry. However, the overall increase in the rubber and plastic index in August was 0, indicating a poor market situation in the industry and a slower than expected recovery in demand for plasticizers.

Future expectations

According to the data analyst of Shengyi Society’s plasticizer products, in terms of cost, the prices of isooctanol and phthalic anhydride fell in August, and the cost of plasticizer DOP decreased; In terms of demand, the rubber and plastic industry index declined in August, and the demand for plasticizers did not recover as expected. In terms of the future, as the Golden September approaches, there will be a rebound trend in the price of isooctanol in late August, and the recovery of the rubber and plastic industry is evident. The cost of raw materials for plasticizers and downstream demand expectations will both rise in the future, and it is expected that the price of DOP plasticizers will rebound and rise in the future.