Uncertain Demand Outlook Injects Instability in Global DBP Prices, Price Trend Varies With Regions
Uncertain Demand Outlook Injects Instability in Global DBP Prices, Price Trend Varies With Regions

Uncertain Demand Outlook Injects Instability in Global DBP Prices, Price Trend Varies With Regions

  • 28-Sep-2023 3:34 PM
  • Journalist: Yage Kwon

The global market for Dibutyl Phthalate (DBP) has diversified, and the price trend for the product has varied in different regions during September 2023. As per the recent analysis, DBP prices in the USA witnessed a downtrend, whereas the European region upholds stability. However, the Chinese market experienced an inclination on the back of improved demand from the downstream plasticizer industry.

In the US, the DBP prices fluctuated and ended at a lower note despite the increase in construction activities. According to the Residential Construction Branch, the seasonally adjusted data for new house construction in the US has surged by +6.9% during August, which is expected to showcase similar market sentiments in September. Moreover, as per the data, the US Manufacturing PMI has inclined during this timeframe, which indicates healthy trading activities. Despite the US downstream construction sector gaining momentum, the prices of DBP experienced a downtrend during September under the influence of previous stocks available. Several firms reduced their purchasing activity for DBP, likely due to sufficient stocks of inputs and finished items available onsite. Hence, the performance of the US DBP market was lower-than-expected compared with Europe during September 2023 amid no new orders falls during this timeframe.

During this period, the European DBP market holds immense stability on the rollover demand from the previous month. As per the traders, domestic consumption has not reformed due to unchanged demand from the downstream plasticizer industry. Hence, several domestic suppliers have kept the firm prices relevant to market activity. Furthermore, numerous European participants were returning from their extended summer vacations. This has built a cautious trading atmosphere amongst the consumers; hence, the inventories were restrained for a month ahead.

On the contrary, a significant rise in the price of DBP has been observed in China amid the healthy demand for this product witnessed by Chinese players during September, primarily driven by increased off-take from the domestic plasticizer sector. As DBP is commonly used to enhance the flexibility and durability of polymer-based construction materials, this rise in demand has exerted upward pressure on its prices. Moreover, the cost of raw materials, including n-butanol and phthalic anhydride essential for DBP production, has surged. These combined factors have contributed to the notable price escalation of DBP in China, reflecting the dynamics of supply and demand in the market and the cost pressures associated with its production. Moreover, the DBP enterprises had decreased their output, and the factory inventories were insufficient to meet the growing demand of the downstream plasticizer industry, which has further put upward pressure on prices.

As per ChemAnalysts, the outlook for the DBP global market is foreseen to remain positive during October under the expectations of healthy prospects from the downstream plasticizer market.

Related News

Dibutyl Phthalate Prices Dropped Amidst Modest Inquiries
  • 18-Aug-2022 3:01 PM
  • Journalist: S. Jayavikraman
Surging Values of Dibutyl Phthalate Amid Stagnant Demand in China
  • 02-Jun-2022 6:00 PM
  • Journalist: Xiang Hong
With a marginal ease in crude oil value, Dibutyl Phthalate prices still soaring in global market
  • 08-Apr-2022 5:34 PM
  • Journalist: Bob Duffler