Dibutyl Phthalate prices in India declined by 0.8% in June, continuing the decrease seen in May even with slightly higher n-butanol costs. The supply was stable with normal production rates and strong depot inventory. Demand remained weak, particularly in the construction and paints sectors, negatively affected by the weather with monsoon conditions disrupting activity. Buyers continued the 'cautious, need-based' approach to purchases. Developing trends do not suggest major movements in input costs or demand, suggesting DBP prices will be largely stable in the near term.
In India, dibutyl phthalate prices fell by 0.8% in June, and continued falling price trend of May. While feedstock n-butanol prices had a slight rise of 0.1%, prices declined as a result of ongoing dismal downstream demand and sub seasonality in key consuming markets.
Dibutyl phthalate manufacturing activity remained relatively stable on the supply side. Domestic producers operated at normal capacity, and the slight increase in input costs had little bearing on overall production economics. Inland transport and depot-level operations continued with limited interruption from the monsoons. Dibutyl phthalate inventories held in the major depots remained elevated due to steady production levels and smooth inland logistics. Dibutyl phthalate suppliers maintained competitive pricing strategies to support market movement, ensuring supply remained unaffected by external trade conditions.
However, demand fundamentals for dibutyl phthalate remained weak. With the monsoon season starting in many parts of India, construction activity was hindered, which further reduced demand across flexible PVC applications like wires, cables, and flooring. Between the segments, which consume dibutyl phthalate mainly, experienced project timelines and material requirement slowdowns. At the same time, the paints and coatings sector reported lower offtake, as projects related to outdoor infrastructure had been delayed and retail demand was softening.
Buying behaviour along the downstream value chain remained decidedly tentative for dibutyl phthalate. Distributors, processers and end users were stuck between consumption trends creating uncertainty and high inventory levels, with little wholesale buying, instead most parties would only buy on an "as needed" necessity basis. Buyer's appetite was further stifled, with high inventories at the depot level, also influencing buying decisions while they waited for a meaningful demand event.
Overall, dibutyl phthalate market tone for June was soft, with prices pressured by seasonal demand weakness and weather-related disruptions. Despite balanced supply and efficient distribution, subdued demand dictated market behaviour throughout the month demand was somewhat subdued creating market behaviour during the month.
Looking ahead, ChemAnalyst expects that Dibutyl Phthalate prices in India are anticipated to remain unchanged in the near term. Demand from key consuming sectors such as construction and paints continues to be weak amid monsoon disruptions. The overall supply situation is well-balanced, with producers running at normal production levels and distributors with sufficient inventories to cover current demand. In addition, there are no significant changes in upstream n-butanol prices anticipated so input prices will be steady. Given that dibutyl phthalate producers are not expecting to see a major increase or decrease in demand in the near-term, prices will likely continue to have a steady trend in the immediate term. Dibutyl phthalate buyers are expected to continue with cautious, need-based procurement, further reinforcing price stability.
