High consolidation of plasticizer DBP prices this week

According to the Commodity Market Analysis System of the Business Society, as of August 11th, the DBP price was 9812.50 yuan/ton, an increase of 0.38% compared to the price of 9775 yuan/ton on August 4th. The price of DBP raw material butanol has fluctuated and decreased, while the price of phthalic anhydride has fluctuated and increased. The cost of plasticizer DBP has not increased enough, and the operating rate of plasticizer enterprises is 40%. The supply of plasticizers has contracted, and the profits of plasticizer enterprises are at a loss. The plasticizer manufacturers are operating under low load, and many plasticizer enterprises have equipment shutdowns. Downstream demand is cold, and high prices of plasticizers are difficult to pass down, resulting in an increase in plasticizer inventory. This week, the price of plasticizer DBP has stabilized at a high level.

The price of isooctanol has increased this week

According to the Commodity Market Analysis System of the Business Society, the price of isooctanol on August 11th was 11240 yuan/ton, an increase of 4.23% compared to the price of 10783.33 yuan/ton on August 4th. Planned and unexpected shutdowns of domestic octanol plants have led to a tightening of the supply of isooctanol and a continuous increase in octanol prices. The inventory of isooctanol is low, and the market center has shifted upwards. This week, the price of isooctanol has surged, and the cost of plasticizer DBP raw materials has increased. As the price of isooctanol has risen to a high level, buying sentiment has become cautious. In mid to late August, two sets of isooctanol units in Shandong and Jiangsu are planned to restart, and the supply side of the isooctanol market is expected to be loose. However, there is insufficient support for the sustained rise of isooctanol in the future.

The price of n-butanol fluctuated and fell this week

According to the Commodity Market Analysis System of the Business Society, as of August 11th, the price of n-butanol was 7900 yuan/ton, a decrease of 2.47% compared to the price of 8100 yuan/ton on August 4th. In some regions of China, the centralized maintenance of n-butanol units has led to a reduction in on-site supply, and tight spot circulation has supported the upward movement of the n-butanol market. Downstream demand is flat, and downstream enterprises’ procurement enthusiasm is cold. This week, the price of n-butanol has fluctuated and decreased, and the cost of plasticizer DBP has decreased. In the future, the pressure on the price of plasticizer DBP to decline has increased.

Future expectations

Analysts from Business Society’s plasticizer product data believe that in mid to late August, the expected recovery of isooctanol enterprises’ construction is insufficient support for the sustained rise in isooctanol prices; Poor demand, fluctuating prices of n-butanol, continued support for the rise of phthalic anhydride market, and insufficient support for the cost increase of plasticizer DBP products in the future. The downward pressure is increasing; Downstream PVC demand growth is poor, and plasticizer DBP demand is cold. In the future, the support from rising costs is insufficient, and downstream demand is cold and plasticizer supply is shrinking. It is expected that DBP prices will fluctuate and consolidate at high levels in the future.