For the Quarter Ending June 2023
North America
Prices for Phthalic Anhydride tumbled in North America during the second quarter of 2023 to an average of USD 1734/tonne FOB Texas. According to trade data, the Purchasing Managers Index (PMI) dropped to 46.3 in the United States market during this period, whereas the Consumer Price Index (CPI) dipped 4% compared to the previous year. Market participants are currently grappling with volatile conditions due to uncertainty brought about by these unexpected developments. In light of these challenges, participants engaged in current conversations around potential solutions emphasize the need for cautious decision-making moving forward to navigate today's difficult climate towards brighter prospects. The inventories of the product were depleted in the regional market as per team data. This change in demand has adversely affected market sentiments. Furthermore, the reduced procurement of O-Xylene, a key component in the production of phthalic anhydride, has resulted in an increase in inventory levels. As a consequence, the market sentiments surrounding phthalic anhydride have been significantly impacted. These interconnected factors have created a complex situation where the industry's upstream and downstream segments are experiencing challenges and uncertainty.
Asia
During the second quarter of 2023, the prices of Phthalic Anhydride plunged dramatically in the Chinese market to reach USD 1230/ton Ex-Dalian. This drop in pricing is attributed to several factors. Firstly, the falling benchmark rates of DOP led to decreased raw material costs involved in manufacturing Phthalic Anhydride utilizing basic chemical inputs such as bench market quotations derived from upstream benzene commodities. Additionally, softening domestic Ortho-Xylene ("DOP" equivalent) values saw pressure mounting in tandem against general market sentiment characterizing a shifting trend indicative of weakening producer confidence whereby their prior high valuation estimates seemingly now lack validity. Subsequently, waning feedstock and reduced production charges resultantly lowered the total operational expenditure required to bring finished goods to market. Thus, sellers must accept lower margins to achieve sales transactions, leading to depressed pricing structures across the board throughout the Chinese marketplace as a whole. The inventory level of Phthalic Anhydride elevated due to lower consumption from the downstream agricultural fungicides and amines in the region, as per market data.
Europe
The prices of Phthalic Anhydride plunged in the German market during the second quarter of 2023, with prices at USD 1486/ton FCA Cologne during June, as per ChemAnalyst market team data. The price trends for Phthalic Anhydride registered a marginal fall at the beginning of the third quarter owing to plunging pricing fundamentals. The prices declined as the petrochemical industry suffered owing to low Crude Oil and Natural Gas prices. The low feedstock O-Xylene prices, coupled with complex logistics, deflated freight charges, and plunging demand from polymer industries, led the prices to plummet well within the third quarter. The PMI depleted to 40.6, and CPI increased by 116.8 points impacting the supply chain situation in the German market. The freight charges from Germany to North America East Coast plunged by 12%. The inventory level of Phthalic Anhydride elevated due to lower consumption from the downstream market as per trade data, and the stock of feed O-Xylene also seemed to be rising in the region.
For the Quarter Ending March 2023
North America
The market value of Phthalic Anhydride elevated in the North American market during Q1,2023 with prices ranging at USD 1715/ton FOB Texas in January. The inventory of the product fell in the region due to increasing consumption of the product from the downstream paints and lacquers industry. The stock of O-Xylene depleted along with increasing procurement of the product for the manufacturing of Phthalic Anhydride. The production cost of Phthalic Anhydride escalated with the rise in electricity cost, putting pressure on the price of the product in the region. The supply of Phthalic Anhydride in the US market was increasing with the stimulation of shipment quantity in the US domestic market.
Asia
The market value of Phthalic Anhydride elevated in the Asian market during Q1,2023 with prices ranging at USD 1192/ton Ex-Dalian during February in China. The rise in the production cost of Phthalic Anhydride implemented the elevation in the price of petrochemicals in China. The short-term price trend of Ortho Xylene is mainly upward, and the downstream plasticizer industry is operating in a volatile manner, impacting the costs of petrochemicals. The demand from the downstream fertilizer market elevated, and the supply of the product was depleted, leading to a rise in inventories of the product with the merchants. The investors are optimistic about Phthalic Anhydride industrial growth, with more sales being generated and subsequently higher profits, as reported by sources.
Europe
The prices of Phthalic Anhydride moved in a downward see-saw direction, with prices ranging at USD 1789/ton FCA Koeln. The ports and terminals in Europe were generally fluent in improving supply chain disruptions which were possible due to improvements in logistics. The prices in the area were further supported by the region's weak plasticizer and polyester sector demand. However, when downstream demand decreased towards the end of the week, prices began to decline and gained speed, creating good market fundamentals. The inventory level of Phthalic Anhydride escalated with lowering consumption from the downstream market in the region, impacting the pricing sentiments.
For the Quarter Ending December 2022
North America
During the last quarter of 2022, the prices of Phthalic Anhydride plunged in the North American market. Poor downstream demand harmed the Phthalic Anhydride market, which continued to decline. The price of Phthalic Anhydride was low with ample supply, the downstream plasticizer market was sluggish, and the feedstock Ortho Xylene was low. The supply of Phthalic Anhydride in the US market was increasing with the increased shipment availability in the US domestic market from the overseas markets. The inventories of the product increased with the traders and the suppliers as consumption reduced, affecting the market sentiments. Additionally, the domestic market’s buying activity has weakened, which triggered the downward trend in the Phthalic Anhydride prices in the USA.
Asia
The prices of Phthalic Anhydride plummeted in the Asian market during Q4 of 2022; affected by the fluctuation of the Mixed Xylene (MX) market, the market for downstream Ortho Xylene decreased further. Thus, the cost support for the Phthalic Anhydride market fell sharply. The supply of Phthalic Anhydride in the Chinese market was sufficient, with the domestic plants operating at stable rates. The domestic Phthalic Anhydride was a surplus in the supply of goods, which further affected the market sentiments, and the market trend continued to decline. Together with the maintenance of some Phthalic Anhydride units, it exacerbated the market spot supply easiness. Therefore, the domestic market price moved down again.
Europe
Phthalic Anhydride prices dropped in the European market during the fourth quarter of 2022 due to poor demand from consumers. The fluctuating energy prices and the Natural gas supply shortage resulted in production cuts, leading to the Phthalic Anhydride price fall. Furthermore, the ease in port congestion and the clearing of backlogs in the Hamburg port improved the supply activities. However, transportation was affected due to the labor shortage in the UK due to labor strikes in October 2022. The downstream synthetic resins market was weak due to poor consumer demand. The drowning construction sector further ushered in weak purchasing activities and lowered Phthalic Anhydride prices.
For the Quarter Ending September 2022
North America
An oscillating price trend of Phthalic Anhydride was seen in the USA during Q3 of 2022. For an initial couple of months, the product prices decreased gradually due to poor stale demand from the PVC and paint producers. At the same time, feedstock prices were reduced and negatively impacted production costs. However, in the final month of Q3, the price trend revived, and product prices rose due to improved orders from the downstream industries and increased buying activities in the region. Consequently, after witnessing no significant change from the previous quarter's prices, Phthalic Anhydride discussions in the USA settled at USD 1992/MT at the end of Q3.
Asia
The Phthalic Anhydride prices trend shifted during Q3 of 2022. For an initial couple of months, the product prices decreased due to declined orders for end products in the construction and automotive sectors. Then in the summer, key producers in China cut down operational rates on Government's instructions due to heat waves. At the same time, depreciation in currency values and economic slowdown further affected domestic manufacturing activities. While in the final month of the quarter, the price trend revived, and product prices rose due to increased upstream costs and feed prices. At the end of Q3, Phthalic Anhydride prices in China and India settled at USD 1413/MT and USD 1372/MT, respectively.
Europe
Like the North American region, Phthalic Anhydride prices also shifted in the European region during the Q3 of 2022. Initially, the prices rose marginally due to increasing inflation and input prices. Key domestic producers curtailed their productions amid high energy prices and rationing of input supplies by the exporters. Then the product prices decreased in the mid-quarter due to declined demand from the downstream PVC producers. However, towards the end of Q3, prices increased due to affected material supplies and supply chain disruptions caused by a fall in the river's water levels, like the Rhine during summer. After witnessing an increase of 4% in the Q2 values, Phthalic Anhydride discussions in Germany settled at USD 1940/MT.
For the Quarter Ending June 2022
North America
In the second quarter of 2022, Phthalic Anhydride prices in the North American area began to rise. As the downstream production of polyester resins strengthened, so did the need for Phthalic Anhydride. The market for Phthalic Anhydride was further inflated by the restricted supply of upstream Crude due to the import ban on Russian goods. Moreover, the price trend for Phthalic Anhydride in the region increased with the significantly rising feedstock o-Xylene prices. The import charges were soaring as the demand from the domestic market was inflating. Additionally, the high fuel prices and the skyrocketing freight charges also laid the foundation for the price hike.
APAC
Fluctuating price trend was observed throughout the second quarter of 2022 in the Phthalic Anhydride market. As a result of the COVID resurgence, the market was closed in April, which initially caused the price to decline. The stock was piled up due to the port congestion and poor purchase. The lockdown limitations were loosened by the mid of Q2, which resulted in the resumption of domestic markets. Additionally, the delay in export from South Korea due to the South Korean trucker’s strike inflated the Phthalic Anhydride pricing. Moreover, the Phthalic Anhydride market was stimulated by the increased demand from the downstream Polyester resin manufacturers.
Europe
The domestic UK market for Phthalic Anhydride expanded in the second quarter of 2022. The rising demand from the local and regional markets inflated the price of Phthalic Anhydride. The Russian incursion on Ukraine increased the cost of upstream Crude, which influenced the feedstock o-Xylene and positively impacted the Phthalic Anhydride market. Besides. The optimistic price trend of Phthalic Anhydride was retained by the high demand from the end-use automotive, agricultural, pharmaceutical and chemical sectors. The increasing requirement for the downstream polyester resin also influenced the Phthalic Anhydride market. In addition, the traders were obliged to quote high prices due to the high freight costs brought on by the soaring fuel prices.
For the Quarter Ending March 2022
North America
During the first quarter of 2022, prices of Phthalic Anhydride price rose rapidly due to the soaring upstream crude values and feedstock O-Xylene prices. Moreover, skyrocketing freight charges and container shortage resulted in a delay in supply, affecting Phthalic Anhydride market. Furthermore, continuous market growth was attributed to the high demand for Phthalic Anhydride in the formulation of Polycarbonate plastics, fungicides, Resins, and Amines in paint & coatings, construction, and automotive industries. Prices of Phthalic Anhydride in the US towards the end of the quarter surged to USD 1791 per MT for FOB Louisiana in March.
Asia Pacific
Phthalic Anhydride prices showcased strong growth in the quarter ending March 2022 due to rising raw material costs which led to the steep escalation. The rise in crude values have been pressurizing global traders to raise their values in order to maintain profitability. Besides, lockdown restrictions in China had a severe effect on the domestic market prices. Furthermore, growing demand from downstream plasticizers, polyester resin, paints & coatings sectors further caused surging in Phthalic Anhydride prices in Q1. By the quarter ending March, prices of Phthalic Anhydride in India were observed at USD 1562 per MT for CFR JNPT.
Europe
By the quarter ending 2022, prices of Phthalic Anhydride witnessed mixed sentiment. Initially, in January and February, prices dropped as the demand from downstream PVC, paint and coating, resins fell due to high inventory levels. Cost of Phthalic Anhydride settled at USD 2595 per MT in February. Later in the month of March, prices witnessed a marginal rise due to the surge in raw material prices. Due to the Russia-Ukraine war, prices of upstream crude soared, affecting the Phthalic Anhydride market. In addition, the rise in freight charges have further impacted the cost of Phthalic Anhydride in Q1 in Europe.
For the Quarter Ending December 2021
North America
In the North American market, Phthalic Anhydride prices experienced a marginal hike during the fourth quarter of 2021. Phthalic Anhydride market sentiments remained stable in this duration backed by the firm demand from the downstream Agrochemicals, Plasticizers and Pigments manufacturers. In the US market, limited availability of the product on the spot basis was witnessed due to lower export from Europe and Asia that contributed to the inflation in the prices of Phthalic Anhydride in Q4. Phthalic Anhydride FOB Texas prices were settled at USD 1450/MT in December.
Asia Pacific
In the Asia Pacific region, Phthalic Anhydride prices witnessed a downward trajectory in the fourth quarter of 2021 backed by ample supplies and stable to narrow demand. In India, a steep decline in the prices of Phthalic Anhydride was seen in this timeframe supported by the lower buying momentum and ample supplies. Besides in the last month of the quarter, traders were trying to finish their inventories due to year-end, keeping the spot prices low. Hence, Phthalic Anhydride Ex-Ahmedabad prices tumbled down to USD 1213.26/MT from USD 1318.45/MT in the timeframe of October to December. Similarly in China, FOB Dalian Phthalic Anhydride prices were assessed at USD 1057/MT in December showcasing a dip of USD 166/MT since October owing to the lower enquiries from downstream PVC makers and Lull trade activities due to end of the year. Furthermore, pricing trend of the upstream O-Xylene had also supported the price curve of Phthalic Anhydride in Asian markets.
Europe
In the European market, Phthalic Anhydride prices rose effectively during the fourth quarter of 2021backed by the firm demand from downstream Unsaturated Polyester Resin (UPR), Plasticizers, Agrochemicals manufacturers. Moreover, rising production costs due to exorbitant energy charges led to the surge in Phthalic Anhydride prices in the domestic market. Furthermore, supply constraints due to shortage of shipping containers kept the pricing trend high in the region during Q4. Thus, in November PAN prices soared to USD 2910/MT however, in December Phthalic Anhydride prices eased due to dull market sentiments at the end of the year. Hence, FCA Koeln Phthalic Anhydride price was last assessed at USD 2865 per MT in December witnessing an overall hike since October.
For the Quarter Ending September 2021
North America
An increment in Phthalic Anhydride prices was observed during the third quarter of 2021 in the North American market. The 3rd quarter had no scheduled turnarounds for Phthalic Anhydride plants in the US. However, supply fundamentals remained snug in the region which was further exacerbated by the lack of imports as logistics issues persisted throughout the quarter. Bolstered demand from the downstream construction industry continued to be the key consuming end of the material across the US in Q3 of 2021.
Asia Pacific
The prices of Phthalic Anhydride rose effectively in the Asia Pacific region in Q3 of 2021 backed by the firm demand outlook. In India, after a long run of investigation, the government imposed anti-dumping duty over imports of Phthalic Anhydride on imports from China, Indonesia, South Korea, and Thailand in the month of August. This decision of the leading Indian authorities led to a further spike in the price of domestic Phthalic Anhydride in the country. CFR JNPT (India) prices shot up from USD 1010/MT to USD 1103/MT from July to September. Due to significantly firm demand from the downstream polyester resin manufacturers, prices kept running on a high note in India till the end of Q3.
Europe
The European market of Phthalic Anhydride witnessed an upward trend in the third quarter of 2021. The market reported extremely low supply of Phthalic Anhydride coupled with constrained overseas import. The demand increased throughout the quarter from the downstream paints and coating, and Unsaturated Polyester Resin (UPR) sectors which led to the surge in Phthalic Anhydride prices. FCA Koeln PAN price was last assessed at USD 2775 per metric tonne in September.
For the Quarter Ending June 2021
North America
The regional Phthalic Anhydride supplies were negatively impacted as turnaround at several facilities imbalanced the supply-demand scenario in early Q2. Market supplies witnessed an improvement in the latter half of the quarter as the producers ramped up production with surging demand. Several spot buyers were seen stocking up their inventories ahead of the turnarounds to keep the production in downstream industries smooth. The prices followed an uptrend throughout the quarter with FOB Louisiana prices touching USD 1390 per tonne in June. Market participants also pointed at raw material Ortho-xylene shortages which resulted in cost pressures for phthalic anhydride manufacturers.
Asia Pacific
The market outlook of the Asia Pacific region witnessed mixed sentiments, during the first half as the prices observed a constant downfall with the producers fearing setback of the demand erosion as COVID cases erupted in several parts of Asia. Many market participants remained anxious over the demand outlook as the key importer India was badly impacted with the second wave of COVID restricting its industrial and commercial activities for more than a month. Prices in India retreated after a historic surge in Q1. In May, Indian producers raised concern over increasing Phthalic Anhydride imports from China, Indonesia, South Korea and Thailand. CFR prices in India dropped to USD 1235 per Mt due to overall market slowdown.
Europe
Phthalic Anhydride production remained capped in the first half of Q2 as one of the key players in Europe conducted a catalyst change routine in their reactor. Enquiries from the downstream plasticizers industries surged amidst production-related hinderances and limited Phthalic Anhydride supply while the demand from the paints and coating sector remained stable. Downstream Unsaturated Polyester Resin (UPR) sector noted improved enquiries but lacking supplies of the raw materials remained the key concern of the producers.
For the Quarter Ending March 2021
North America
The supplies of Phthalic Anhydride in the North American region were tight due to reduced imports. The market witnessed nearly 50% fall in its Phthalic Anhydride imports on Y-o-Y basis due to high shipping freight cost and limited product availability. Several plants operated normally without disruption despite freezing weather which hit the USA Gulf region. However, demand was sluggish as offtakes by plasticizer manufacturers declined as the region faced shortage of other key raw materials in February, followed by the disrupted automotive sector. However, it is observed that several key players in the region restocking their inventories ahead of planned turnaround in the next quarter which surge the prices of Phthalic Anhydride in the region. Phthalic Anhydride FOB Texas prices for March deliveries were assessed at USD 1210/MT.
Asia-Pacific (APAC)
The Asian Phthalic Anhydride market was balanced to tight during the first quarter of 2021, as Thai Continental petrochemical plant was on a turnaround, compounded by delayed cargoes from China due to the Lunar New Year holidays. High shipping freight charges further tightened the market situation. Demand was balanced throughout the quarter due to better offtakes from other Asian plasticizer consumers. In India, Phthalic Anhydride prices witnessed an enormous surge in March as compared to the February due to sturdy demand and material shortage. CFR JNPT prices hiked by USD 382/MT on m-o-m basis in March.
Europe
The European Phthalic Anhydride supplies were tight during the first quarter of 2021, owing to reduced imports from Asia and USA. The Suez Canal blockage in March added to high shipping freight worrying several importers. Extreme cold weather in the northwest Europe further created the transportation hinderance and delay in supplies of the key feedstock of o-xylene and naphthalene. Demand improved during the quarter due to better offtakes from the downstream automotive and construction sector.
For the Quarter Ending September 2020
North America
Supply of Phthalic Anhydride in the US remained sufficient with respect to the regional demand. Although supply of feedstock Orth-Xylene was disrupted by the maintenance at the key trade route of Illinois river which started in July and is expected to last till late October. This did not hamper the production of PA immediately as majority of manufacturers had already stockpiled enough cargoes of feedstock till the year end. Demand from the paint and coatings segment appreciably picked up with increase in number of remodeling and construction projects during the indefinite lockdown period. However, offtakes from the automotive industry remained dampened amid consistent increment in unemployment rate and reduced expenditure on consumer goods.
Asia
As several plants that were earlier under turnaround resumed production, supply for Phthalic Anhydride (PA) considerably improved with respect to the previous quarter. The domestic demand in China took a positive turn by the end of September, while exports from the country viably reduced as manufacturers were keen towards catering to the local downstream demand. Traders expressed optimism over the mega infrastructure campaign organized by the Chinese government to revive the looming construction industry, which is expected to contribute well for surging the demand for PA by the end next quarter. As the demand fundamentals were steady, around 1000 tonnes of the material from Northeast Asia was sold to China. PA cargoes from the Northeast Asia were sold at USD 600 per tonne in the late-September to early October period. With the permanent shutdown of Korea’s LG Chemical PA unit in August, the region suffered a loss of 60 tonnes per year production capacity that in long run is anticipated to create a considerate demand-supply gap in Asia.
Europe
Lockdown induced in the second quarter continued to weigh over the market fundamentals of the European Phthalic Anhydride till mid of July due to high inventories of PA. In August, the condition marginally improved with a long maintenance turnaround in a large-scale PA plant. By the end of September, regional Phthalic Anhydride market witnessed much needed revival, supported the strong downstream demand form the UPR segment. After the slow crawl in July-August period, PA demand recovery was fast pace, far above the market expectations.
