For the Quarter Ending September 2022
North America
Dioctyl Phthalate (DOP) market in the American market fluctuated in the third quarter due to declining consumer confidence. However, due to unfavorable market sentiments and slow offtakes as a plasticizer in PVC paste and pulp mixtures and as an additive in many other processes, the price for DOP fluctuated in the region. In addition, the feedstock 2-EH (2 Ethyl Hexanol) and PA (Phthalic Anhydride) market observed a mixed price trend which further supported the DOP price to follow the same. However, Manufacturers had stocked enough inventories in anticipation of Hurricane Ian's impact, which led to the overflowing stock as demand muted in the region.
APAC
The price trend of DOP dwindled consistently in China due to the build-up of stock inventories of DOP phthalate during the lockdown, and prices plummeted significantly. However, in July, the price trend was persistent in China, and the price decreased noticeably in the domestic market. Later, Due to the rising energy prices and Covid restrictions, the production cost increased in China. Thus, tight product availability and slow operating rate loomed over the market, leading to the Chinese market's hike in DOP prices. The price rose in the second part of Q3 as demand increased from the downstream plasticizer industry for its utilization as PVC, contributing to the cost of Dioctyl Phthalate (DOP), which assembled at USD 1440/MT during September.
Europe
The domestic market's demand for DOP kept declining, and the price pressure on 2-EH (2 Ethyl Hexanol) and PA (Phthalic Anhydride) as feedstock also slowed. However, its price has dropped to a low point due to adverse market sentiments and sluggish end-use industry offtakes. Downstream PVC, paints and coatings, printing inks, adhesives and sealants, and lacquers sectors were experiencing a decline in demand. As a result, the region had a substantial supply-demand imbalance in the second half of the quarter and has shown no signs of short-term recovery. Therefore, poor demand and a sluggish market outlook led to a drop in DOP prices.
For the Quarter Ending June 2022
North America
Being the major global manufacturer of EV auto vehicles, the demand sentiments remained solid for phthalates from the automotive and construction sector in the North American region, and the price trend of Dioctyl Phthalate remained strong throughout quarter 2 of 2022. The product costs rose substantially at the beginning of the Q2 due to a surge in feed 2-Ethylhexnol prices and upstream costs, along with increased energy costs in the region impacted by global inflation and soared crude oil prices. However, from the mid-quarter, the DOP price trend stabilized, and the monthly increment in price was marginal until the end of the quarter.
Asia
During Q2 of 2022, the price movement of Dioctyl phthalate inclined upward in the Asian region except for China. In India, with a quarterly increment of 5% since Q1, product prices sloped upward till the mid-quarter, backed by the consistent demand for phthalate in the domestic construction and the automotive sector. On the contrary, prices declined continuously in China throughout the Q2 due to continuous contraction in feed 2-Ethylhexanol prices and build-up material stock inventories during frequent lockdowns and congestion of port. At the same time, the DOP prices remained strong in the regional manufacturer of phthalate in South Korea.
Europe
The price trend of Dioctyl phthalate remained consistent in the European region, with a significant increment in price at the beginning of quarter 2. Post-war in the east-European region, severe inflation, and shortages of Crude oil supplies affected the petrochemicals market, and feed 2-Ethylhexanol costs rose sharply. However, feed costs stabilized in the mid-quarter, but rising energy costs along with high freight and fuel charges in the region kept the prices on the higher side. After the mid-quarter, the product prices rose marginally till the end of Q2. The demand was consistent in the downstream construction and automotive sector in the quarter. However, product supplies and offtakes were affected in the region due to the shortage of containers.
The price of Dioctyl Phthalate (DOP) escalated upwards in Q1 2022, owing to the steep increase in the prices of crude coupled with better demand from the downstream market, with prices ranging around USD 1875/ton FOB New York at the end of March. This price change was primarily driven by the rising costs in the upstream value and improving demand in the domestic market. Since the beginning of January, crude oil prices have been on an upward trajectory, taking pressure from the escalating tension due to the ongoing war between Russia and Ukraine, pushing up the prices of several products, including phthalates, in the global market. Stable offtakes from the downstream polymer sector supported the uptrend in prices of most plasticizers in the USA.
During the first quarter of 2022, the prices of Dioctyl Phthalate (DOP) rose upwards in Asia as the demand fundamentals for the product from the domestic polymer segment have increased under the influence of improved offtakes from the domestic construction sector, as Dioctyl Phthalate is used as a plasticizer in Polyvinyl Chloride and Polystyrene. The price in India was observed to be USD 1681/ton CFR JNPT at the beginning of January. As per the EXIM data, India primarily imports Dioctyl Phthalate from China, followed by Korea and Malaysia. Thus, rising freight cost under the influence of inflationary pressure has affected the overall pricing dynamics of several products, including Dioctyl Phthalate in Asia. In India, a significant increase in the values of Dioctyl Phthalate was observed, which was backed by the expensive imports from Southeast Asian countries such as Malaysia due to the lower production rates.
In Europe, the prices of Dioctyl Phthalate went up to USD 1980/ton FD Hamburg in the first quarter of 2022 by the month of March due to higher demands for the product from the domestic and international market. Dioctyl Phthalate prices remained buoyant under the influence of the rising demand pattern in adhesives, plasticizers and fragrance components amidst the soaring upstream value. The price of upstream raw materials n-octanol and sulphuric acid increased to maintain their margin due to soaring freight rates as a consequence of the ongoing war between Russia and Ukraine. There was an escalation in prices due to lower production following the labor shortage in the nation.
