For the Quarter Ending June 2024
North America
In Q2 2024, the Diisononyl Phthalate (DINP) market in North America exhibited a mixed pricing trajectory, driven by multiple converging factors. Notably, the region grappled with subdued demand, exacerbated by slowing construction activities and the weakening of downstream markets such as adhesives and sealants. Additionally, a moderate supply environment contributed to the bearish sentiment, as inventory levels remained ample due to pre-emptive production increases to counter potential supply disruptions from seasonal hurricanes. This oversupply, coupled with decreased export demand from Asia, further pressured prices downward.
In the USA, where the most significant price fluctuations were observed, the market revealed a consistent declining trend throughout the quarter. The onset of the hurricane season led to heightened inventory levels, initially injected some volatility into the market. However, as the quarter progressed, demand waned, particularly in the construction sector, which saw no substantial gains in employment since March, reflecting a sluggish market. The alignment of spot and contract prices, coupled with the Federal Reserve's unchanged interest rates, also played a role in tempering demand, leading to a bearish market sentiment.
Seasonal factors, including the Memorial Day celebrations and anticipatory stocking ahead of hurricane season, initially pushed prices up, but subsequent de-stocking activities created a downward pressure. Pricing data shows that the prices remained 17% lower than beginning of 2024. DINP prices showed recovery in June as major deliveries and higher stocking demand, elevated crude prices throughout the quarter.
APAC
In Q2 2024, the Diisononyl Phthalate (DINP) market in the APAC region experienced a bearish pricing trend. Significant factors contributing to this decline included an oversupply scenario exacerbated by high inventory levels, reduced export sentiment due to elevated freight costs, and sluggish demand from key markets like Europe and the USA. Production rates were curbed across multiple APAC plants, particularly those in Southeast and Northeast Asia, in response to these adverse market conditions. Additionally, cost support from upstream acetic acid weakened, further intensifying the bearish sentiment in the DINP market. Focusing exclusively on Japan, which underwent the most significant price fluctuations, the trends were clearly reflective of seasonality and market oversupply. The overall trends were predominantly bearish, driven by the high inventory levels and limited export opportunities. Moreover, the seasonal impact of the monsoon in APAC and the autumn in Europe contributed to the subdued demand. The correlation of these factors led to a 9% drop accumulated at the end of the quarter, while the year-to-date price comparison recorded a 2% rise. Comparing the first and second half of the quarter, the price fall remained more pronounced in the second half of Q2. By the quarter's end, DINP prices in Japan settled at CFR Tokyo at lower prices, however price decline remained more pronounced in the latter half underscoring a negative pricing environment throughout Q2 2024. This consistent downward trajectory highlights the challenging market dynamics and the ongoing struggles within the DINP industry in the APAC region.
Europe
In Q2 2024, Diisononyl Phthalate (DINP) pricing in the European region experienced a notable upswing, driven by a confluence of factors that exerted upward pressure on market prices. The quarter was marked by a resurgence in demand for flexible PVC, particularly as the construction sector ramped up activities post-winter. Additionally, the stabilization of freight charges following earlier capacity expansions contributed to augmented market confidence. The quarter witnessed substantial supply disruptions due to plant shutdowns, including significant interruptions in Germany's southern region caused by severe flooding, which led to multiple DINP production facilities going offline. These supply constraints were exacerbated by lower cracker operations in the Netherlands and a persistent shortage of upstream feedstocks. Italy, in particular, saw the most pronounced price increases, influenced by both domestic and external market dynamics. The Italian market experienced heightened demand for DINP-derived PVC, buoyed by government-led construction projects and rising business confidence, as evidenced by an uptick in PMI indices. Seasonality played a crucial role, with summer bringing a surge in civil works and public expenditure, thereby intensifying inventory pressures. The comparison between the first and second halves of the quarter revealed a 15% price increase, underscoring robust demand outstripping supply. The prices at the end of Q2 2024 stood at an elevated USD 1928/MT. Overall, the pricing environment for DINP in Italy remained decisively bullish, driven by a synergy of supply disruptions, seasonal demand spikes, and improved macroeconomic indicators.
For the Quarter Ending March 2024
North America
In Q1 2024, the North American market for Diisononyl Phthalate (DINP) witnessed a predominantly positive pricing environment. DINP prices demonstrated a bullish trend throughout the quarter, propelled by various factors. Initially, prices experienced a slight uptick in January, driven by improved export demand and low inventory levels. However, this was offset by weakened industrial demand and downward pressure from negative feedstock prices. The situation was further complicated by supply chain disruptions resulting from the Suez Canal crisis.
February saw a more pronounced price decline as demand sentiment waned and industrial activity remained sluggish. Suppliers responded by destocking to better align production with reduced demand forecasts. Despite ongoing supply chain challenges, material costs continued to decrease.
While the supply remained moderate, import supply faced tightening due to shortages in upstream feedstock and disruptions in the supply chain triggered by the Suez Canal crisis. This resulted in inventory pressures and operational challenges for manufacturers. Nonetheless, DINP demand remained steady, with indications of improvement in downstream sectors reflected in newer orders. Manufacturing showed slight improvement, driving up domestic demand for DINP. Furthermore, demand for plasticized PVC in destination countries exhibited signs of recovery, further bolstering overall DINP demand.
APAC
The first quarter of 2024 has witnessed a notable decline in prices for Diisononyl Phthalate (DINP) in the APAC region. Multiple factors have contributed to this downward trajectory, including sluggish demand from the automotive and construction sectors downstream, along with diminished inquiries from key importing nations like China. Additionally, heightened crude oil prices have elevated manufacturing costs for DINP, exacerbating the pricing pressure. Overall, the pricing landscape for DINP in APAC has been unfavorable throughout the quarter. Market sources indicate a moderate influx of new inquiries from automotive industries downstream, predominantly resulting in smaller order transactions. Japan, notably, experienced substantial price fluctuations, marking a sharp decrease compared to the same period last year, with a 14% drop from the previous quarter in 2024. Despite recent stability, DINP prices in Japan closed the quarter at USD 1458/MT for DINP FOB Osaka, emblematic of the prevailing downward market sentiment.
Europe
The pricing environment for Diisononyl Phthalate (DINP) in the Europe region during Q1 2024 has been positive overall. Prices of DINP experienced a bullish trend throughout the quarter, driven by various factors. Supply side remained moderate, with import supply tightening due to upstream feedstock shortages and disruptions in the supply chain caused by the Suez Canal crisis. This led to inventory pressures and challenges for manufacturers. However, the demand for DINP remained stable, with newer orders showing improvement in the downstream sector. Manufacturing improved slightly, leading to an increase in domestic demand for DINP. Additionally, the demand for plasticized PVC in destination countries showed signs of improvement, further supporting the overall demand for DINP.
In Italy, which experienced the maximum price changes, the pricing trend for DINP followed a similar pattern. The Italian domestic demand for DINP remained weaker, but with inventory pressure relaxing as manufacturing continued for PVC. The market saw an improvement in demand sentiment downstream, leading to stable prices and negotiations for European supply contracts. The demand for plasticized PVC in Italy also showed signs of recovery.
In terms of price changes, there was a 4.5% increase in DINP prices in January compared to the previous month. Prices continued to increase in February, with a 4.0% rise. Looking ahead, prices are expected to increase further by 3% in April. The latest quarter-ending price for DINP in Italy is recorded at USD 1647/MT CFR Genoa.
For the Quarter Ending December 2023
North America
In Q4 2023, the North American Diisononyl Phthalate (DINP) market faced a dynamic and diverse landscape. Initially stable, supported by demand from wire and cable production, mid-quarter fluctuations emerged. Varied regional demand, evolving trade dynamics, fluctuations in feedstock costs, and growing environmental concerns contributed to the volatility.
Towards the quarter's end, prices generally declined due to ample inventory levels, growing competition among producers, and anticipation of potential disruptions like stricter regulations and the development of greener alternatives. Lower DINP prices benefited downstream industries, especially wire and cable manufacturers facing cost pressures. However, uncertainty regarding regulations and environmental concerns added complexity for some sectors.
Producers experienced mixed profitability influenced by production costs, hedging strategies, and regional operations. The West Coast saw generally stable to slightly lower prices due to sustained demand and ample supply. The Northeast & Midwest experienced greater volatility due to regional economic trends, import fluctuations, and industry dynamics. Prices in the Gulf Coast exhibited a slight downward trend as demand slowed in certain sectors.
Asia Pacific
In Q4 2023, the Asia Pacific Diisononyl Phthalate (DINP) market exhibited a dynamic and mixed landscape. Initial stability, supported by demand from wire and cable production, was followed by mid-quarter fluctuations. Regional demand variations, with Southeast Asia maintaining stability and China experiencing temporary slumps, were influenced by seasonal factors and economic slowdown. Fluctuations in feedstock costs, changes in import activity from South Korea and Taiwan, and evolving environmental regulations added to market uncertainty. Towards the quarter's end, prices gradually declined due to ample inventory levels, growing competition among producers, and expectations of reduced demand amidst economic slowdown and potential substitution with alternative plasticizers. Lower DINP prices benefited downstream industries, especially wire and cable manufacturers facing cost pressures. Producers experienced mixed profitability, influenced by production costs, hedging strategies, and regional operations. Southeast Asia saw stable to slightly lower prices, while China experienced greater volatility due to internal economic trends, trade fluctuations, and environmental concerns. In India, prices exhibited a slight downward trend as demand slowed down in certain sectors.
Europe
In Q4 2023, the European Diisononyl Phthalate (DINP) market faced a complex landscape. Initial stability, supported by demand from wire and cable production, was followed by mid-quarter fluctuations due to weakening demand in construction and furniture sectors. Evolving regulations, especially concerning phthalates like DINP, heightened uncertainty, impacting sectors like children's toys. Fluctuations in feedstock costs, influenced by phthalic anhydride and n-nonanol prices, affected regional pricing. Geopolitical uncertainties from the ongoing conflict in Eastern Europe further disrupted trade flows and economic confidence. Towards the quarter's end, prices declined due to ample inventory levels, growing competition among producers, and anticipation of continued challenges such as stricter regulations and potential substitution with alternative plasticizers. Lower DINP prices benefited downstream industries like wire and cable manufacturers, particularly those facing cost pressures. However, uncertainty regarding regulations and environmental concerns added complexity for some sectors. Producers experienced mixed profitability influenced by production costs, hedging strategies, and regional operations. Western Europe saw generally stable to slightly lower prices due to weaker demand, regulatory concerns, and ample supply. Eastern Europe experienced greater volatility due to regional economic trends, trade flow fluctuations, and competition among producers.
