For the Quarter Ending December 2021
North America plasticizer sector remained consistent throughout the fourth quarter of 2021. Pandemic related issues in global market and rising input cost were the major factors that keep on shaking the market dynamics across the region. Stable offtakes from the downstream polymer sector supported the uptrend in prices of most of the plasticizers in USA. Meanwhile, raw material oxo alcohols also rose effectively and a rise of 1.5%-2% was observed during this quarter in US market. In addition, rising Crude oil and Naphtha value played a key role in inducing inflationary pressure on makers as well as consumers of the country. In addition, plasticizers demand was primarily channelised by downstream PVC and paint industry, as their demand from consumer segment sustained the overall market optimism.
Dioctyl Phthalate market showcased mixed sentiments across Asian market during Q4 2021, as the demand in most of the major economies remained dull. In India, DOP prices declined throughout the quarter on the back of low offtakes from the domestic market amid ample availability. While China market witnessed frequent ups and downs initially due to coal shortage and later dual energy policy, which brought production cuts in the domestic market. Meanwhile South Korean market performed better than these two countries, where consistent price escalation was observed during this quarter on the back of firm offtakes from the downstream buyers. DOP prices heard hovering around USD 1390/MT in South Korea during December.
High production cost has pushed up the market sentiments for Europe during past few months. Despite modest to stable demand from the domestic market, several commodities price trend reached multiyear high, primarily driven by uncontrolled escalation in input energy cost. In addition, polymer manufacturers heard battling with high input cost, as rising crude oil value was the prime factor behind these spikes. In line with these price escalation, other countries also increased their offers in expectation of better margin. Conclusively, European market has witnessed a stable rise for DOP during this quarter.
For the Quarter Ending September 2021
During the third quarter of 2021, the Dioctyl Phthalate (DOP) market outlook appeared to be bolstered in North America backed by the strong demand from the downstream consumer goods sector. In the US, Dioctyl Phthalate prices witnessed a modest rise as the hurricane season disrupted the supply chain and hurricane impacted the production rates of its feedstock chemicals. Shortage of key raw materials led to the rise in their price that consequently pushed the DOP fundamentals. Low operations at downstream PVC plants in the US Gulf Coast also resulted directly affected the plasticizer consumption during the third quarter. Hence, a moderate rise in the prices of DOP was observed in the North America region
In Asia Pacific region, the Dioctyl Phthalate (DOP) market experienced an upward trend during the third quarter of 2021. In India, a significant rise in the values of Dioctyl Phthalate was seen backed by the expensive imports from Southeast Asian Countries such as Malaysia due to the lower production rates. Moreover, exorbitant freight charges due to soaring fuel charges and unavailability of shipping containers supported the pricing trend. In addition, spike in the raw material costs in the domestic market also influenced the pricing trend of the Dioctyl Phthalate (DOP) in this quarter. Several traders were compelled to raise their offers to defend their margins owing to the exceptional hike in prices. Thus, DOP prices rose from USD 1867.26 per MT to USD 1956.18 per MT during July to September.
In Europe, the Dioctyl Phthalate (DOP) market mirrored the pricing trend of other regions during the third quarter of 2021. Tight supplies of feedstock as an impact of congestion in several ports of China and hurricane related outages in the US during the third quarter of 2021 kept the market supplies tight. Furthermore, expensive imports supported by high freight charges as well as logistical delays led to the increment in the prices of DOP in Q3.