Domestic Phthalic Anhydride (PA) Price is Stuck in A Rut
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Domestic Phthalic Anhydride (PA) Price is Stuck in A Rut

Views:0     Author:Site Editor     Publish Time: 2019-11-29      Origin:Site

On 12th November, the Phthalic Anhydride (PA) Commodity Index was 61.19, which was the same as yesterday. It is 49.06% lower than the highest point at 120.132 on 8th February 2012 in the cycle, and it is 26.37% higher than the lowest point at 48.42 on 21th January 2016 in the cycle (Note: the cycle refers to since 1st September 2011).

The domestic PA market price continues to fall recently. The market price of PA in East China is weak. The downstream factories procure based on exact need. The pressure of factories’ inventory increases. The high-end transactions were blocked. Manufacturers handle more inventories. The market price of PA goes weaker. The mainstream price of adjacent process PA in East China is RMB 6,000-6,500 yuan/ton. The mainstream of naphthalene PA supply is RMB 5,700-5,900 yuan/ton. The mainstream price of PA market in North China is RMB 5,900-6,200 yuan/ton. Most of manufacturers are staging a price correction. The operating rate of downstream is fairly low. And downstream factories maintain on-demand procurement and have a strong wait-and-see attitude. Domestic PA plant runs stably and the supply of PA is sufficient, associated with the poor downstream demand. Overall, the demand for PA has decreased, and the price trend of PA has continued to decline.

In terms of upstream players, China National Petroleum and Gas Corporation (Sinopec Group) execute upstream product price of PA—O-benzene at RMB 6,200 yuan/ton. As the restart of O-benzene manufacturers, the supply of goods increases. The price of imported goods in the port area fell, and the quotation fell. Recently, the price of O-benzene near the port fell. The port inventory is at a low level. The external-disk price of O-benzene shocks down. The actual transaction price is subject to negotiation, and the details were discussed. Influenced by the dropping price of the upstream raw material- O-benzene, the price trend of PA market continued to decline.

The downstream DOP price is slightly lower. The price of isooctanol is lower, and the DOP cost is lower. The DOP price is fluctuating, the downstream demand of DOP is normal. Customer's purchasing enthusiasm is general. Downstream PVC market is fluctuating and declining. The high-end transaction of DOP is blocked. The mainstream transaction price of DOP market slightly reduces to RMB 7,300-7,700 yuan/ton. The downstream price trend is declining, and the upstream OX price is falling, affected by the downward cost. It is expected that the market price of PA will maintain a slightly lower trend in the later period.