For the Quarter Ending March 2023
North America
The market trend for Dibutyl phthalate (DBP) during the first quarter of 2023 appeared that input price inflation rose due to higher raw material costs and shipping cost pressures. The high demand from the downstream plasticizer industry as well as reducing inventories in the region, was also affecting the domestic DBP industry's profit and volume growth. At the same time, the rising labor shortage in the US market during the second half of Q1 was also likely contributing to the increase in production costs, which was further driving up the price of DBP. Overall, it seems that the market for DBP has been on an upward trend throughout the first quarter of 2023 due to various factors, including high demand, input price inflation, reduced inventories, and labor shortages.
APAC
The market trend for Dibutyl phthalate (DBP) during Q1 of 2023 noted that there was an initial surge in demand for DBP after the Chinese Festival, leading to a subsequent increase in market sentiment amidst limited inventories. However, the decline in orders from downstream PVC industries in the second half of Q1 stabilized the market and reduced the burden on manufacturing units. However, the supply of feedstock phthalic anhydride remained consistent, which helped ease the price trend of DBP during the second half of Q1. It was also noteworthy that players in the market were stressed due to mounting inventories and were compelled to allow consistent negotiations to initiate offtakes. Overall, it seems that the market for DBP experienced some fluctuations during Q1 of 2023 but ultimately stabilized in the second half of the quarter.
Europe
The European market for Dibutyl phthalate (DBP) showed an upward trend throughout the first quarter of 2023, which was likely due to the active procurement from downstream plasticizer sectors, leading to improved market sentiment. The stocks of finished goods were at the optimum level to meet demand from downstream industries, and there were no observed supply-chain constraints during the given timeframe. This suggests that the market was functioning efficiently, and there were no major disruptions to the supply chain. Overall, it seemed that the availability of upstream phthalic anhydride and n-butanol was adequate, and the market participants were also optimistic about purchasing the material in bulk quantity. As a result, the DBP market experienced an increment in its price trend throughout the quarter.
For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, the price of Dibutyl Phthalate (DBP) in North America showed changing market sentiment. The pricing trend for DBP varied as a result of fluctuating feedstock costs for phthalic acid as well as shifting demand from downstream producers of plasticizers. However, a range of other factors, such as shifting consumer attitudes, inflationary pressure, and fluctuating currency values, all had an impact on the market dynamics of DBP in the US market. Additionally, the large amount of inventory that was present in the second half of the quarter and the lower number of orders kept prices in the local markets low. Therefore, as the quarter came to a close, local prices remained low even as consumer activity increased.
APAC
The price trend of Dibutyl Phthalate (DBP) was seen as stagnant in the domestic Chinese market. Decreased upstream values in the domestic market affected the values negatively, and the overall trade and export prices of DBP declined in China. The offtakes remained consistent due to the continuous demand for phthalate materials from the end-user plasticizer industry amid the stable consumer demand sentiments in the construction and automotive sector. So, the domestic producers reduced the product prices in the country as the demand was modest from the domestic plasticizer PVC producers. Also, the previous stock of DBP was available at low costs in the market, and product offtakes were average.
Europe
Dibutyl Phthalate (DBP) Prices varied in Europe during the fourth quarter of 2022, following the pattern of the Asian market. However, due to a consistent supply and an abundance of material, manufacturers were able to deliver the goods on time. Price inflation for both input and product fell as a result of relieving supply constraints and declining demand. Later, in the second half, the price increased slightly as a result of rising production costs and rising energy costs. The need for DBP in the European market was being driven by end-use demands from downstream plasticizers. As a result, there were fluctuations in the price of DBP in the Eurozone throughout the fourth quarter.
In Q3 2022, the DBP market of the USA ended on a mixed note. Due to unprecedented energy and utility costs, prices faced a Northward trend in the first half while slowed in the second half with adequate product availability. In July, with consistent demand for DBP in the paint and plasticizer-producing industries, the product price rose marginally for the construction and automotive sectors. However, the slower trading activity came from mid-August as market participants traded with weaker spot prices and sufficient product inventories. DBP prices showcased a bearish trend as traders sought further discounts to the overseas suppliers amid weak market fundamentals and lower bidding for the new stocks.
Dibutyl Phthalate (DBP) prices showed mixed sentiments in the APAC region in the Q3 of 2022. In India, the reduced costs of raw materials Phthalic anhydride and Iso-Butanol negatively impacted DBP's production costs in the first half of Quarter 3 of 2022. In addition, the domestic producers reduced the product prices in the country as the demand was modest from the domestic plasticizer PVC manufacturers. September pricing dynamics for the commodity saw a rise with an increase in the new offers from the downstream industries and limited availability amidst the country's upcoming festive season. Therefore, the price of DBP was settled at INR 139780/ton Ex-Mumbai (India) during September 2022.
The third quarter of 2022 had a mixed performance from the European DBP market, which saw an increase in the first part of the quarter. Later, as the energy crisis expanded throughout the market, consumer sentiment for the demand for dyes and plasticizers declined. Since the second half of August, the bearish trend has continued. Customers have been reluctant to make significant purchases because of the European market's rising gas and electricity prices. Additionally, DBP producers reduced their offers to sell off the existing stocks since the peak season for their end-use industries was about to end its use amidst the ban, which resulted in a decrease in price during September.
