For the Quarter Ending June 2024
North America
In Q2 2024, the North American market for Dioctyl Phthalate (DOP) experienced a significant price increase, driven by constrained supply and rising input costs. Limited inventories and crude oil prices reaching a two-month high were key contributors. Additionally, severe weather conditions, including the hurricane season and floods, disrupted industrial demand and production rates, further tightening supply chains. These disruptions, along with a container shortage and logistical challenges, propelled DOP prices upward.
In the USA, the most pronounced price fluctuations occurred. Seasonal factors, such as the hurricane season, exacerbated supply constraints, resulting in higher prices this quarter. The pricing environment was further strained by robust domestic demand in the DOP industry and export opportunities in Africa and Asia, as buyers sought alternatives to mitigate supply gaps.
This upward trend reflects a positive pricing environment, driven by high input costs, strong demand, and constrained supply, underscoring the persistent inflationary pressures within the downstream plasticizers market in North America during Q2 2024. Seasonal factors, such as the hurricane season, exacerbated supply constraints and led to an increase in the cost pressure during this quarter.
APAC
In Q2 2024, the pricing environment for Dioctyl Phthalate (DOP) in the APAC region has been markedly negative, characterized by a consistent decline. This downward trajectory was driven by a confluence of factors, including tepid demand in downstream plasticizer markets, buoyant inventory levels, and weakening feedstock prices. The broader economic context, with sluggish real estate markets and constrained industrial activities, further exacerbated the price decline. Seasonally, market dynamics were impacted by the typical lull in construction activities, contributing to the reduced demand for DOP. Additionally, the overall bearish sentiment was amplified by the anticipation of further price drops, which stifled procurement activities and led to a cautious, wait-and-see approach among buyers. Focusing on South Korea, the DOP market observed maximal price changes during this quarter. The pricing trend in South Korea mirrored the regional sentiment, with significant decreases driven by ample stock availability and diminished buying interest. The correlation between high inventory levels and falling prices was pronounced, underscoring the market's sensitivity to supply-demand imbalances. Disruptions included maintenance turnarounds at LG Chem Ltd. in Daesan, which, despite their temporary effect, were insufficient to counterbalance the overarching negative pricing trend. The quarter culminated with the DOP price settling at USD 1520/MT FOB Busan in South Korea, underscoring the adverse market conditions. Overall, the Q2 2024 pricing environment for DOP in South Korea, and the broader APAC region, was decidedly negative, driven by an array of detrimental factors influencing both supply and demand dynamics.
Europe
In Q2 2024, the European market for Dioctyl Phthalate (DOP) experienced a slight price decline due to several key factors. Subdued domestic demand within the plasticizer industry and intensified competition among regional sellers were major influences. Additionally, the uncertain economic outlook exacerbated bearish market sentiments. Shipping disruptions and logistical challenges further destabilized the market, prompting many producers to reduce output rates.
In Germany, where the most significant price changes occurred, market dynamics closely mirrored broader regional trends. German DOP prices fell sharply, driven by high production costs and weak downstream demand, particularly from the plasticizer industry. Overall, the pricing environment for DOP in Germany during Q2 2024 was marginally negative, impacted by structural market weaknesses and supply-related disruptions. Port operations were also affected by a workers' strike impacting ports such as Hamburg, Bremen, Bremerhaven, Brake, and Emden in June 2024. The dispute over the collective agreement led to strikes at German container ports, halting activities at the Port of Hamburg for two days before a fourth round of negotiations began. The strikes later affected Wilhelmshaven, Bremen, and Emden, causing operational disruptions at container terminals. A prolonged strike could delay operations at Hamburg and Bremerhaven ports in August, severely impacting German exports, particularly in the automotive and machinery sectors.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, Dioctyl Phthalate (DOP) prices in the North American region experienced an upward trend. Several factors played a role in influencing market prices during this period. Firstly, there was a notable increase in demand from the downstream Plasticizer sector, driven by ongoing infrastructure development projects and heightened manufacturing activity.
However, a significant concern arose with the collapse of Baltimore's Francis Scott Key Bridge, which raised issues regarding the efficient transportation of the product within the United States. This incident occurred at a challenging time when tank supplies in the region were already strained due to adverse weather conditions. Throughout the quarter, there was a keen focus on consumer inflation data in the United States, especially following a strong payroll employment report that indicated a robust labor market.
Concurrently, interest rates were in a contractionary phase, aimed at tempering economic expansion. Additionally, the exported value of downstream PVC dipped by 5.2% in January 2024, signaling a surge in downstream inventory levels deteriorating DOP demand for the time being. Despite these challenges, the pricing environment for DOP in the North American region during Q1 2024 remained positive, with increasing prices driven by heightened demand from the downstream Plasticizer industry and supply constraints.
APAC
During Q1 2024, the Dioctyl Phthalate (DOP) market in the APAC region experienced mixed trends, with significant factors influencing market prices. Generally, DOP prices were influenced by limited regional supplies, moderate to high demand from the downstream industry, and fluctuations in raw material costs. In South Korea, the market witnessed the most significant price changes, with a price increase of 3.8% in December 2023 and remaining stable in January 2024. This increase was attributed to moderate downstream demand and tight supplies. However, domestic demand in the plasticizer industry showed low enthusiasm, resulting in cautious market sentiment. Overall, DOP prices in the APAC region remained relatively stable, with moderate to high demand from the downstream industry. However, the Chinese DOP price trend experienced a consistent decline as purchasing activity in the market showed restraint, primarily influenced by a slow recovery in downstream demand, particularly evident in China's plasticizer sector. This decline was exacerbated by converters ensuring adequate material supplies, resulting in subdued interest in purchases and a cautious approach among investors. Despite the possibility of scheduled maintenance turnarounds in China potentially reducing the availability of Chinese cargo, an oversupply situation persisted due to weak demand and ample stockpiles in warehouses throughout the first quarter of 2024 in China.
Europe
The recent uptick in Dioctyl Phthalate (DOP) prices in the European market during the quarter ending March 2024 reflected a combination of moderate demand and a shortage of suppliers. Challenges within the European DOP supply chain, such as disruptions in logistics linked to the turmoil in the Red Sea, contributed to the prevailing pricing trend. Decreases in downstream production rates, resulting from supply disruptions, prompted market participants to adopt a cautious approach regarding potential further changes. Despite fundamentals indicating low downstream Plasticizer industry demand amidst slowed construction activities, limited supplies were notable in the German domestic market. Global crude oil prices surged, surpassing USD 87 per barrel, driven by factors such as tighter physical markets, the extension of OPEC+ production cuts, and geopolitical tensions. However, DOP prices in the German market remained static, with a narrowed demand-supply gap and limited stock availability amidst increasing input costs in the middle of the quarter. Supply concerns surfaced in March 2024 as the Easter holidays approached, particularly focusing on German ports facing closures during weeks 13 and 14 due to the holidays. Additionally, the export value in the downstream Plasticizer industry saw an increase in January 2024, indicating a shortage of inventories amidst production rate cuts, further exacerbating DOP prices during this quarter.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, the North American Dioctyl Phthalate (DOP) market experienced a decrease in prices. This quarterly decline was influenced by diminished demand from downstream industries using DOP and abundant supplies.
The limited DOP demand in the USA's manufacturing plasticizer sectors was a result of a slow economic recovery and stagnant trading conditions in relevant segments. In anticipation of a price hike due to a new import tariff, buyers temporarily suspended their purchasing activities during this period. Additionally, international factors, such as the Russia-Ukraine war and a drought affecting the Panama Canal, added complexity to the USA's international container logistics in the final quarter of the year.
In response to a substantial drop in spot export prices compared to contracted prices, US buyers were engaged in active discussions regarding potential reductions in DOP prices. The disruptions in US shipping caused by Panama Canal issues and the ongoing decline in crude oil values also played a role in influencing pricing dynamics in the North American DOP market during this time frame.
APAC
The Dioctyl Phthalate (DOP) market in the APAC region during the fourth quarter of 2023 experienced various factors that influenced prices and market dynamics. One significant factor was the overall weak demand from key industries such as construction and automotive, which led to reduced consumption and downward pressure on prices. Additionally, the presence of competitive pricing strategies from China further impacted the market, making it challenging for South Korean DOP manufacturers. Another factor was the temporary plant shutdown of SK Geo Centric's feedstock Propylene plant in South Korea, which disrupted the supply chain and limited the availability of raw materials for DOP production. In South Korea specifically, the DOP prices fluctuated marginally due to market adjustments. The stable supply and demand forces kept the prices intact, and South Korean traders maintained their offered quotations to remain competitive. The maintenance turnaround of SK Geo Centric's Propylene plant further affected the availability of raw materials, creating a gap in the supply chain. The rise in South Korea's manufacturing sector and the slight increase in buying activities within the domestic region contributed to the overall demand for DOP for this quarter. However, the high Consumer Price Index and weak economic situation dampened consumer spending, impacting downstream demand for plasticizers like DOP. The latest price of Dioctyl Phthalate (DOP) FOB Busan in South Korea for December 2023 is USD 1500/MT.
Europe
The DOP prices in the European market exhibited an overall decline in the fourth quarter of 2023. European DOP traders and manufacturers were primarily focused on the reduced demand from the downstream Plasticizer and construction industry. This emphasis resulted in only modest price fluctuations, despite concerns about disruptions in freight at the end of the quarter. The extended transit time for imports was a significant factor, as highlighted by a producer. Another noteworthy factor was the sufficient availability of inventories, further negatively impacting prices. Germany witnessed the most substantial changes in prices, following a bearish trend for most of 2023. The strategy of reducing operating rates to protect profit margins for producers and traders proved inadequate for suppliers to boost margins, given the competitive pressures from the import market. Despite production cutbacks, DOP supplies consistently faced challenges due to low PVC demand in Q4 of 2023. The disruptions in US shipping caused by Panama Canal issues and the ongoing decline in crude oil values also played a role in influencing pricing dynamics in the European DOP market as well during the terminating quarter of 2023.
For the Quarter Ending September 2023
North America
Compared with the second quarter, the Dioctyl Phthalate (DOP) market in the USA performed lower than expected in the third quarter. The prices witnessed immense fluctuations with the trend seeing inclination during July under the influence of improved downstream construction demand within the region, while further deterioration in the following month. As per the data, quoted by Fred, the Producer Price Index by the Cement Industry witnessed a rise from 233.89 in June to 234.7 in July depicting development in the construction segment which was directly linked to the DOP production. On the contrary, the DOP market experienced a declining trend despite the increase in construction activities. The US housing market performed well, with new house construction raised by 6.9% in August. Along with this, the US Manufacturing PMI also increased in August, which showcased recovery in the downstream sector. Despite this, the prices for DOP fell in September, as firms reduced their purchases due to sufficient stocks and producers seeking to remain competitive during September.
Asia
During the third quarter, the Dioctyl Phthalate (DOP) market in China saw a significant price rise, with prices escalating as compared to the second quarter of 2023. During July, as per the data, Dongying Yimeide Chemical, Zhejiang Hongbo New Material Technology, and Zhenjiang Liancheng Chemical Industry increased their plasticizer production to cater to the growing demand of the DOP. The Chinese suppliers have been standing firm on their offers due to healthier demand from export markets amid an absence of US cargoes. Followed by this month, during August, the downstream plasticizer admitted a substantial surge in the demand for DOP in China primarily driven by increased off-take from the domestic construction sector. As DOP is commonly used to enhance the flexibility and durability of polymer-based construction materials, this rise in demand has exerted upward pressure on its prices. secondly, the cost of raw materials including 2-EH and phthalic anhydride essential for DOP production has surged during September. These combined factors have contributed to the notable price escalation of DOP in China throughout the third quarter.
Europe
The German dioctyl phthalate (DOP) market experienced contrasting price movements in the third quarter of 2023, with prices increasing in the first half and declining in the second half. This can be attributed to low DOP inventories in July as manufacturers reduced their production units to meet the recovering demand, which resulted in a high-price trend. In the context of the European economy, the manufacturing Purchasing Managers' Index (PMI) displayed a modest improvement, rising from 42.7 in the previous month of July to 43.7. Following that, the numerous European participants were returning from their extended summer vacations. This has built a cautious trading atmosphere amongst the consumers of DOP and hence, the inventories were restrained for a month ahead. Therefore, several domestic suppliers have kept the firm prices to remain relevant in the market activity. However, the price of DOP decreased during September as a weakening economy and decreasing downstream construction activity led to a decline in consumer confidence which resulted in a decrease in DOP prices.
For the Quarter Ending June 2023
North America
During the second quarter, overall, Dioctyl Phthalate (DOP) market in the US declined compared with the first quarter, which was highly influenced by the US economic condition. Despite having demand from the downstream construction industry in the PVC manufacturing sector, a significant drop of 25.7% within the quarter was observed to settle at 702 USD/tonne PVC suspension calendaring grade k57 FOB Texas. Even the marginal increase in feedstock phthalic anhydride prices during March has not impacted the DOP prices. The result of the constantly increasing risk of recession and uncertain economic stability cast the consumer buying interest in the US market ahead, restricting the DOP market growth. During the weak economic era, DOP traders managed inventories to meet the product requirements throughout the quarter. According to US Price Index for the PVC sector, improvements from 338.1 (March) to 344.7 (April) were observed amid a shortage of homes for sale, which remained unaffected by DOP prices. As per the Federal meeting held in May 2023, the downstream PVC-construction sector would highly influence by the ongoing recession in the US amid lower buying sentiments amongst consumers, hover the prices to show a downturn.
Asia
During the second quarter, Dioctyl Phthalate (DOP) market in Asia was significantly weaker compared with the first quarter. Prices have declined both in China and India during the whole quarter. Application of DOP in Construction industries as PVC plasticizers show a substantial decline in Asia. According to NBS data, the growth rate for the mining and quarrying sector declined from 2.4% (April 2023) to 1.7% (May 2023). From the end industry perspective, volumes are brutally down, adding that destocking continues amid soft worldwide demand. Additionally, the availability of cheaper alternatives has influenced the posted prices to show a downtrend. According to NBS data, PMI fell marginally from 95.3 (April 2023) to 94.1 (May 2023), which states nominal trading activity during the timeframe. Amongst the buyers, weak buying sentiments affected the prices to drop further due to the muted demand from the downstream plastic industry. Moreover, regional high inventories supported the price trend further. Hence, the traders faced the pressure of selling their products which eventually led to the downturn of DOP prices.
Europe
The average pricing trend of Dioctyl Phthalate (DOP) during the second quarter in the European market remained weak as compared with the first quarter. The DOP market is highly influenced by the downstream PVC sector, which is used as a key housing factor in the construction industry. The construction sector was growing in Europe amidst an increase in sales for in-built houses. Due to the rising prices for rental houses, consumers' enthusiasm towards the houses is hampering sales. Despite the rebound in the construction sector, downstream PVC demand remained unaffected as no new orders aligned with the demand. Demand from the downstream industry affected the overall demand for DOP manufacturing. Moreover, distributors remained under pressure to sell their large stocks as the trading activity remained muted throughout the quarter in Europe. As per the data, Production prices in Industry for Europe declined from 136.9 (March) to 135.1 (May), which states the slowdown in economic growth. To remain persistent in the market, traders decreased their posted prices which further led to the downturn of DOP prices. A decreasing trend of DOP prices during June was supported by the feedstock phthalic anhydride prices settling at 1486 USD/ tonne FCA Germany.
For the Quarter Ending March 2023
North America
The price pattern of Dioctyl phthalate (DOP) in the first quarter of 2023 fluctuated throughout the quarter, with a modest decline in the middle of the quarter. It is interesting to note that the prices increased at the beginning of Q1 due to rising demand and a limited supply of materials. The increase in the feedstock phthalic anhydride prices in the region also had an impact on the DOP prices. The declining demand and stockpiling of material in warehouses also affected the market value of DOP. However, it was witnessed that the prices increased gradually and slightly over the course of the last month of the quarter due to an increase in demand from the plasticizers industry. Overall, the oscillating price pattern of DOP in Q1 suggests that the market was experiencing fluctuations in supply and demand.
Asia Pacific
It appeared that the Dioctyl phthalate (DOP) market showed a mixed price trend during the quarter, with prices rising for the most part and declining only in the mid-month. It was noted that the domestic phthalic anhydride plant operated stably during the quarter, and the spot supply in the market was normal. The rise in replenishment after the Spring Festival, along with an uptrend in the feedstock phthalic anhydride market, also contributed to the rise in prices for the major parts. However, the plasticizer manufacturer started temporarily stable during the quarter, and downstream procurement remained strong. Overall, the positive consumer sentiments and enthusiasm amongst the DOP producers led to the prices hovering at USD 1473/MT Ex-Shanghai during March.
Europe
The Dioctyl Phthalate (DOP) market experienced some fluctuations in prices during the first quarter of 2023. It was noted that the prices in Europe were rising at the start of Q1 due to strong demand from downstream plasticizer industries. This suggests that the demand for DOP was robust during the beginning of the quarter. However, the lower product prices observed during February indicate that there was a downturn in demand from the plasticizer industry. This could have been due to various factors, such as changes in consumer preferences or shifts in market dynamics. Overall, the modest supply and demand fundamentals in Europe during Q1 2023 led to fluctuations in the prices of DOP.
For the Quarter Ending December 2022
North America
Dioctyl Phthalate (DOP) price in North America displayed fluctuating market sentiments in the final quarter of 2022. Due to fluctuating feedstock costs for phthalic anhydride and 2-Ethyl Hexanol, as well as altering demand from downstream plasticizer producers of synthetic rubber, the price trend for DOP changed. However, the dynamics of DOP in the US market were also influenced by various factors, including changing consumer attitudes, inflationary pressure, and fluctuating currency values. Meanwhile, there was much inventory in the second half of the quarter, which was evident due to the decreased orders, which kept prices in the local markets low. Additionally, even while consumer activity picked up, local prices stayed high as the quarter ended.
APAC
Due to the high build-up of Dioctyl Phthalate (DOP) inventories in the Asia Pacific region during the quarter, the price trend of DOP fluctuated in China. Nevertheless, the price trend was low in China in November, and the price dropped significantly on the back of fluctuating feedstock phthalic anhydride and 2-Ethyl Hexanol prices. Meanwhile, product prices were cut in South Korea, which led to a decline in product quotes from Chinese exporters. In conclusion, the product offtakes were mild, and the price of Dioctyl Phthalate (DOP) Spot Ex- Shanghai assembled at USD 1454/MT in October after a monthly slide of 3.2% in product pricing. Later, due to the impact of the COVID restriction, which disrupted the product's shipping, the price was seen to be increasing toward the conclusion of the fourth quarter.
Europe
During the fourth quarter of 2022, Dioctyl Phthalate (DOP) Price fluctuated throughout Europe, mirroring the pattern of the Asian market. However, because there was a steady supply and plenty of material available, producers were able to deliver the goods on schedule. Due to easing supply limitations and decreased demand, price inflation for both input and product decreased. Later, in the second half, the price grew marginally due to growing energy expenses amidst rising production costs. End-use demand has been consistent from downstream plasticizers in PVC paste and pulp mixtures and as an additive in many other processes, driving the demand for DOP in the European market. As a result, throughout the fourth quarter, the price of DOP in the Eurozone varied.
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.
For the Quarter Ending March 2022
North America
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.
Asia Pacific
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.
Europe
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.
For the Quarter Ending December 2021
North America
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.
Asia
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.
Europe
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
North America
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
Asia Pacific
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.
Europe
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.
