Volatile Market Dynamics to Mollify Phthalic Anhydride Prices In China
- 05-Aug-2022 3:11 PM
- Journalist: Jung Hoon
The price of Phthalic Anhydride has been witnessing a stable trend for the past few weeks. The decreasing raw material and the steady downstream demand have stabilized Phthalic Anhydride's price trend. In addition, the purchasing activities were also buoyant in the Chinese market.
The Chinese market has been witnessing weak trading activity due to the poor requirements from the domestic market. The domestic market demand hasn't changed throughout this week. The steady selling and purchasing activities led to the soothing Phthalic Anhydride market. The traders were hoping that after the lockdown restriction, the domestic market's activity would regain its strength, but consumer demand remained still.
The declining price trend of upstream Crude, which fell below $100 per barrel, has been influencing its derivatives, such as o-Xylene, which is the primary raw material used to produce Phthalic Anhydride. The declining upstream values further impacted the Phthalic Anhydride pricing. Additionally, the downstream plasticizer sectors are down, resulting in the pilling up of the product in the local market. Thus, the manufacturers are worried, leading them to negotiate their offers for the existing products.
The price of the imported cargoes from South Korea has been firm. South Korea's imposition of a trade deficit is declining export from China and increasing imports. When interviewed, one of the Chinese traders stated that they are in a tight spot; decrement in the Phthalic Anhydride prices can affect their margin, due to which the prices are in an appeasing trend. Therefore, the reasons mentioned above are manipulating the Phthalic Anhydride market.
According to the assessment by the ChemAnalyst team, the price of Phthalic Anhydride might increase in the forthcoming weeks. The price of the imported cargoes may increase if the upstream crude price rise. Besides, the demand from the domestic market is likely to inflate, which can trigger the phthalic Anhydride market. However, domestic market trading could regain its strength. Moreover, the freight charges may increase, pushing the Phthalic Anhydride pricing to move forward.