The Asian market for dioctyl phthalate (DOP) was mixed in May 2025 with a minor dip towards the beginning and a gradual recovery in the latter part of the month. The market was influenced by the volatility of raw material prices, firm supply conditions, and guarded optimism based on events in world trade.

At the beginning of the month, DOP prices experienced a softening trend, weighed down by declining costs of primary raw materials. Isooctanol, which is one of the primary feedstocks for DOP, experienced declining prices as demand continued weaker than anticipated. Despite prospects of better buying interest in view of tariff relief between China and the United States, the resultant market reaction was subdued. Another key raw material, phthalic anhydride, also exhibited a softening trend because of abundant supply and weak downstream demand.

But as the month moved forward, isooctanol prices indicated a recovery. This was underpinned by normal operations at production plants and the expectation of better demand as trade conditions eased. Phthalic anhydride prices recovered slightly mid-month, fueled by expectations of an uptick in consumption and better confidence in the downstream plasticizer industry.

Even with the raw material price recovery, overall cost support for DOP was quite weak. Producers indicated that production levels were even and stable throughout the month, with no interruptions. Supply kept up with demand, but purchasing speed by downstream industries was slower than expected and restricted any sharp price spike.

The most significant positive change for the DOP market in May was the de-escalation of US-China trade tensions. The two parties agreed to cut or roll back most of the extra tariffs that had already been in place. This action generated hopes for improved global trade activity and a possible recovery in industrial chemicals such as DOP demand. However, despite the improvement in market sentiment, the effect on real-time demand was modest in the DOP market.

By the last week of May, DOP prices had started to recover modestly from previous losses, following the partial recovery in feedstock costs as well as a brighter trade outlook. Even so, overall month-to-month performance was lackluster as a result of the sluggishness of demand recovery.

Overall, the Asian market for DOP during May 2025 was marked by initial weakness that later attempted a moderate reversal. Although raw material prices and global trade trends offered some stimulus, weaker-than-anticipated growth in demand maintained the price trend predominantly.

As per ChemAnalyst, market players are optimistic but with caution. Downstream demand is expected to recover gradually and, with the stabilization of raw material prices, DOP prices are expected to find support at current levels soon. If trade conditions further improve and real demand kicks in, the market can expect a firmer up move in the months ahead.