In the first half of 2023, the main domestic phthalic anhydride market showed a trend of rising and falling, and cost and demand became the main factors affecting the market. In the first half of the year, the average price of phthalic anhydride market in East China was 7,963 yuan/ton, a year-on-year decrease of 1.63%. In the first half of the year, the highest value of the Ox method phthalic anhydride market in East China was 8,600 yuan/ton in mid-March, and the lowest value was 7,300 yuan/ton in mid-June.
In the first quarter, the cost factor became the main factor driving the market to rise. Affected by the tight supply of the raw material o-xylene, its price continued to rise. With the help of the cost side, the market price of phthalic anhydride rebounded. Moreover, the market price of phthalic anhydride in US dollars has risen, the price difference between domestic and foreign phthalic anhydride has widened, and the domestic phthalic anhydride export volume has increased.
However, since mid-March, as the market has reached a high level, demand from downstream has continued to be weak. Combined with the impact of the European and American banking crises, the market has become panic-stricken, the commodity futures market has fallen, and the domestic phthalic anhydride market has also fallen to freezing point. The domestic phthalic anhydride market has peaked and fell. Demand-level factors have become the main factor determining the market, which comes from weak terminal demand. With the stable start of the phthalic anhydride industry and the impact of India’s BIS compulsory certification, domestic phthalic anhydride exports have encountered obstacles, and the market supply pressure has gradually increased. The market has shown a downward trend of shocks.
It is expected that in the second half of 2023, the domestic phthalic anhydride market price may show a trend of shock and rebound, and cost factors may become the main factor driving up the market. The support from the upstream cost side is strong, the supply of raw materials o-xylene and industrial naphthalene is relatively tight, and the supply of upstream products is relatively concentrated. From the perspective of domestic phthalic anhydride industry chain products, the inventory of upstream and downstream products in the industrial chain is at a low level. Even in the traditional off-season of July and August, under the situation of high production capacity and low demand in the domestic phthalic anhydride industry, the domestic phthalic anhydride industry inventory is still at a low level. The downstream market may enter a replenishment cycle in the future, which will strongly support the phthalic anhydride market.