Asian Dioctyl Phthalate (DOP) market logged a consistent decline in July 2025, with weak demand and weaker raw material prices pulling down prices. The prices of DOP in China dipped in the previous month, with regional benchmarks including India and South Korea also showing similar downward strength. The trend is expected to spill over to August as well, with weaker costs and stable supply continuing to keep prices under pressure.
In July, Asian DOP production declined sharply as plant operating levels fell from 60% in June to close to 40% in mid-month. This first restrained supply, but when operating levels rebounded to about 60% later in July, availability steadied. But lower production earlier in the month, coupled with uneven trends in feedstocks, added to turbulent pricing. Isooctanol, one of the major feedstocks, firmed at strong levels throughout July with supply falling slightly due to plant shutdowns. As of July 30, isooctanol was marginally higher since the start of the month. Conversely, phthalic anhydride prices declined progressively. Lower ortho-xylene and industrial naphthalene prices cut costs support, adding to the bearish pressure on DOP.
On the demand side, downstream activity was subdued. PVC processors, the biggest end-users of DOP, had limited buying interest as construction and consumer materials sectors continued to face trouble. Most converters steered clear of bulk restocking and opted to buy only to satisfy near-term needs. Export demand also failed to build momentum, leaving the domestic market to be the biggest driver. Consequently, Chinese DOP prices finished July lower than the beginning of the month. The other Asian markets followed similar trends, with India recording a decline and South Korea a decrease in July.
Carrying over to August 2025, the DOP market will remain in pressure. Although phthalic anhydride plant maintenance lowered operating rates modestly, supply was still in balance with demand. Downstream plasticizer producers increased their operating rates, keeping demand for phthalic anhydride steady. Nevertheless, as both isooctanol and phthalic anhydride prices are falling, cost support to DOP is poor.
On the supply side, the resumption of production at DOP plants is likely to boost production and availability in August. This, together with muted demand from construction-related PVC use and general economic slowdown, will probably shift the balance towards oversupply. Market players are watchful, taking a short-term buying approach as end-user consumption does not so far indicate improvements.
As per ChemAnalyst, with lower raw material costs, steady-to-rising supply, and fragile demand, Asian DOP prices will continue their downward trajectory in August 2025. Unless there is a meaningful recovery in construction activity or external demand, the bearish tone is expected to persist in the near term.
