Supplies Tighten Inflicting Phthalic Anhydride Market In Asia Pacific Region

The Asian market has witnessed an uptrend in the Phthalic Anhydride market in the previous week. The uptrend in the Phthalic Anhydride market was supported by several factors, including increased domestic market demand, higher raw material prices, and increased obligations from downstream sectors.

South Korea is the major exporter of Phthalic Anhydride in the Asia Pacific region. The strike conducted by the South Korean trucker's union has been ushering in the crippling transportation of cargo from the ports and industrial hubs. As the strike entered its seventh day today, the supply chains tightened, and there was a delay in exporting the products to the other regions. Therefore, the limited supply of the product and the increased demand from the domestic and regional markets have been inflicting the Phthalic Anhydride market.

The Chinese domestic market has also noticed the upward movement of the Phthalic Anhydride market. The relaxation of Chinese lockdown restrictions resulted in positive buying sentiments among downstream polyester resin manufacturers. Moreover, the domestic downstream dioctyl phthalate price rose due to the increasing obligation from the terminal end. The external quotation of Phthalic Anhydride rose, coupled with the limited supply of the product. As a result, the price of Phthalic Anhydride escalated by 2.4%, with an inclination of $30/ tonne from 8th June to 12th June.

Moreover, the ban on the insurance of the tankers carrying Russian oil to other countries has been pushing upstream crude prices. The rising raw material prices for naphthalene and xylene impact the pricing of phthalic anhydride.

According to the ChemAnalyst database, "The Phthalic Anhydride price is expected to show a slight uptrend in the Asian market. The limited availability of the product and the raw material prices are likely to influence the Phthalic Anhydride values. In addition, demand might arise from the domestic and regional markets due to the insufficient availability of the product if the South Korean truck strike continues. "