For the Quarter Ending March 2025
North America
In Q1 2025, the North American Phthalic Anhydride (PA) market exhibited a largely stable to slightly bearish price trend, shaped by moderate supply-demand dynamics and evolving market sentiments.
January began on a relatively firm note with prices holding steady, supported by consistent feedstock availability—especially naphthalene and ortho-xylene—and solid demand from the plasticizer and automotive sectors. However, February marked the beginning of a softening trend as demand from the construction sector weakened amid high interest rates and inflation, and consumers began shifting toward non-phthalate alternatives due to sustainability concerns.
The introduction of biomass-balanced and recycled plasticizers by major players further contributed to a decline in demand for traditional PA-based variants. This, coupled with an oversupply and declining feedstock costs, led to a modest price drop of around 1.3% over the month. By March, the market had largely stabilized, with consistent production levels and raw material availability preventing any major price swings, although demand remained subdued. Compared to Q4 2024, when prices were more buoyant due to stronger downstream activity, Q1 2025 reflected a plateauing market grappling with shifting demand preferences.
APAC
In Q1 2025, the Phthalic Anhydride (PA) market in the APAC region, particularly Japan, showed a marked shift from the bearish trajectory observed in Q4 2024. After witnessing a 9.7% quarter-on-quarter decline in Q4 due to weak demand and market oversupply, Q1 brought signs of recovery and stabilization. January began with a gradual price uptick, reflecting a 6% increase by March-end, supported by steady raw material supply and resilient production. Although demand from the construction and plasticizer sectors remained subdued amid labor shortages and a cautious investment climate, the automotive sector offered strong support, with a notable 12.4% rise in vehicle sales in January, driving demand for PA-based materials.
In March, a bullish turn emerged as prices rose by 3.7% in the first week alone, driven by supply-side constraints following Mitsubishi Gas Chemical’s exit from PA production. This supply cut tightened availability, countering weak demand and bolstering prices. Unlike Q4, when excess supply pressured the market, Q1 2025 reflected a better-balanced dynamic, suggesting a cautiously optimistic outlook heading into Q2.
Europe
In Q1 2025, the Phthalic Anhydride (PA) market in Europe experienced a predominantly stable pricing trend, marked by marginal upward shifts amidst fluctuating supply-demand dynamics. Prices hovered steadily between USD 1225–1250/MT FCA Germany, reflecting a balanced yet cautious market sentiment. January began with steady pricing amid subdued demand from key downstream sectors such as construction and automotive. While weak industrial activity and reduced consumer sentiment kept demand low, parallel supply constraints stemming from scaled-back production in Germany maintained market equilibrium.
February witnessed minor price upticks (about 1.2% over the month), driven by marginal increases in feedstock costs and modest recovery in plasticizer demand, particularly for DOTP. However, demand remained restrained due to persistent weaknesses in construction and automotive sectors, both impacted by inflation, high material costs, and a fragile economic environment. March maintained this stability despite disruptions in European port operations, as steady domestic production and stable naphthalene prices offset potential supply shocks.
Compared to Q4 2024, when prices declined amid sharp contractions in manufacturing and collapsing construction activity, Q1 2025 reflected early signs of stabilization. Slight improvements in industrial output and supply consistency underpinned this gradual price recovery, though market conditions remain fragile.
For the Quarter Ending December 2024
North America
In the fourth quarter of 2024, the phthalic anhydride market in North America witnessed a modest quarter-on-quarter rise of 4.3%. However, the market experienced a series of price declines throughout the quarter, largely driven by weak downstream demand and oversupply conditions. Despite stable feedstock prices, such as naphthalene and ortho-xylene, which helped maintain steady production costs, the overall sentiment in the market remained bearish. The plasticizer sector, a major downstream consumer of phthalic anhydride, showed sluggish demand, contributing to the downward pressure on prices.
In addition, challenges in the U.S. construction sector, such as labour and material shortages, hindered the growth potential for phthalic anhydride consumption. While the construction sector saw some minor growth, ongoing delays and project strains limited the overall demand for phthalic anhydride. The political landscape and fluctuating U.S. dollar also added to the uncertainty, as the stronger dollar made imports more expensive, potentially affecting international buying activity.
Despite these challenges, a slight improvement in supply-demand dynamics helped stabilize prices towards the end of the quarter. The combination of steady production costs and consistent demand from key sectors, including construction, helped prevent a further price drop, contributing to the overall stability seen in the latter part of the quarter.
APAC
In the fourth quarter of 2024, the phthalic anhydride market in the APAC region, particularly in China, experienced a significant quarter-on-quarter decline of 9.7%. The bearish trend was primarily driven by a combination of weak downstream demand, particularly from the plasticizer and construction sectors, and an oversupply in the market. Throughout the quarter, phthalic anhydride prices steadily decreased as manufacturers faced a decline in high-end transactions and were only able to meet basic procurement needs from downstream factories. The plasticizer market, a key consumer of phthalic anhydride, continued to struggle with negative demand growth, exacerbating the downturn. Additionally, fluctuating prices of key feedstocks, such as ortho-xylene and naphthalene, further pressured production costs and contributed to the declining price trend. In the construction sector, subdued activity and weak demand also hindered the consumption of phthalic anhydride, as lower market activity in major Chinese cities impacted the overall demand outlook. Despite stable production from manufacturers, including stable equipment loads, market sentiment remained weak due to the overall sluggishness across key end-use industries. The weak demand and oversupply conditions in the market suggested that the phthalic anhydride market in China and broader APAC region would continue to face downward pressure in the near term.
Europe
In the fourth quarter of 2024, the phthalic anhydride market in Europe, particularly in Germany, experienced a notable quarter-on-quarter decline of 9.6%. The market trend was dominated by weak demand across key downstream sectors, including plasticizers and construction. The plasticizer market struggled with fluctuations and low consumption, which further contributed to the declining demand for phthalic anhydride. Despite stable supply levels, excessive inventory and stagnant demand led to downward pressure on prices. The construction sector also remained underperforming, with reduced activity across both residential and commercial projects. Economic uncertainties, political instability, and increasing input costs affected investor sentiment, resulting in a contraction in construction-related demand. The overall market sentiment in Germany was bearish, with low procurement levels and heightened competition among market players. Although feedstock prices, such as those of ortho-xylene and naphthalene, showed some fluctuations, they failed to provide sufficient support for market recovery. With the plasticizer market under pressure and no immediate signs of improvement in demand from key sectors, the phthalic anhydride market remained sluggish throughout the quarter. The combination of oversupply, weak demand, and economic uncertainties led to continued price declines in the market.
For the Quarter Ending September 2024
North America
The third quarter of 2024 for Phthalic Anhydride in North America saw stable prices, with the market maintaining a consistent and balanced sentiment. Several factors influenced this stability, including steady demand from downstream industries, stable feedstock prices, and controlled production costs.
The market was also supported by consistent inventory levels, mitigating any potential supply disruptions. In the USA, which experienced the most significant price changes, the quarter displayed a stable trend with no price fluctuations between the first and second half.
The overall price change from the same quarter last year was notable at 14%, indicating a relatively positive year-over-year growth. However, compared to the previous quarter in 2024, the price change was a modest 4%, reflecting a more stable period. The quarter-ending price of Phthalic Anhydride in the USA stood at USD 1535/MT DEL New York, highlighting the continued stable pricing environment in the region.
APAC
In Q3 2024, Phthalic Anhydride prices in the APAC region witnessed a significant decline, with China experiencing the most pronounced changes. Market prices were influenced by several key factors. Decreased demand from downstream industries, particularly the plasticizer sector, played a crucial role in driving prices down. Supply chain disruptions, logistical challenges, and reduced trading activities further exacerbated the negative trend. The bearish market sentiment was also fueled by lower production costs due to declining feedstock prices, such as Ortho-Xylene. China, being a major player in the Phthalic Anhydride market, saw a substantial -25% decrease compared to the same quarter last year. The quarter-on-quarter change was recorded at -2%, with a notable -5% decline between the first and second half of the quarter. The quarter concluded with prices at USD 900/MT Ex Dalian, reflecting the prevailing downward pricing trend. Overall, the pricing environment in Q3 2024 for Phthalic Anhydride in the APAC region remained negative, characterized by consistent declines and challenging market conditions.
Europe
In Q3 2024, the Phthalic Anhydride market in Europe experienced a significant decline in prices, with Germany being the most affected. Several factors contributed to this downward trend. Firstly, weakening demand from downstream sectors, such as paints and coatings and plasticizers, put pressure on prices. The overall economic slowdown in the region, reflected in a contraction in the manufacturing sector, further exacerbated the situation. Additionally, supply disruptions and increased production costs influenced the market dynamics, leading to a bearish sentiment.
In Germany specifically, the price changes were the most pronounced, with a 15% decrease compared to the same quarter last year. The quarter-on-quarter change of 6% highlighted the continued downward trajectory. The comparison between the first and second half of the quarter showed a further decrease of 1%, emphasizing the ongoing price decline trend. The latest quarter-ending price of USD 1465/MT for Phthalic Anhydride FCA Cologne in Germany indicates the persistence of the negative pricing environment. Overall, the market has been characterized by a consistent decrease in prices, reflecting a challenging and unstable pricing landscape.
For the Quarter Ending June 2024
North America
In Q2 2024, the Phthalic Anhydride market in North America experienced upward price movements. This quarter was characterized by several pivotal factors that significantly influenced market prices. Firstly, heightened demand from downstream sectors such as plasticizers and resins played a crucial role. As these industries ramped up production, their increased consumption of Phthalic Anhydride contributed to the price surge. Secondly, a notable rise in feedstock costs, particularly for Ortho-Xylene and Naphthalene, further strained production budgets, thus driving up commodity prices. Additionally, logistical challenges, including rising shipping costs due to increased fuel prices, exacerbated the situation, leading to higher overall costs for Phthalic Anhydride delivery.
Focusing on the USA, which witnessed the most significant price changes, the market presented a clear upward trend. Seasonality factors, coupled with the summer demand peak, further propelled prices. Comparing Q2 2024 to the same quarter last year, there was a 2% uptick, reflecting a positive shift in the pricing environment. Furthermore, the 4% increase from the previous quarter in 2024 underscores robust demand and constrained supply dynamics. Within the quarter itself, there was a 2% price increase between the first and second halves, showcasing consistent upward momentum in Phthalic Anhydride pricing.
By the end of Q2 2024, the price in the USA reached USD 1550/MT DEL New York. This quarter’s trends indicate a positive pricing environment driven by strong demand and increased production costs, signaling a stable yet progressively increasing market sentiment.
APAC
In Q2 2024, the pricing environment for Phthalic Anhydride in the APAC region highlighted several dynamic shifts, significantly influenced by diverse market factors. The quarter experienced a noticeable uptick in operational costs, driven by an increase in feedstock prices, logistics, and transportation expenses. Notably, the constrained supply chains and rising demand from downstream industries, particularly in the plasticizer sector, further propelled prices upwards. The seasonal surge in construction activities also intensified the demand for Phthalic Anhydride, as it is a vital component in producing plasticizers used in construction materials. Focusing on China, which experienced the most pronounced price fluctuations, the quarter showcased a complex interplay of market forces. Despite an overall upward movement in the first half of the quarter, prices faced a minor contraction of 2% compared to the previous quarter. However, this scenario was still an improvement compared to the same quarter last year, which recorded a significant price decrease of 10%. This quarter's end price of USD 963/MT Ex Dalian reflects a 5% increase when comparing the first and second halves of the quarter, indicating a gradual recovery and stabilization in the market. The overall trend in China was characterized by a balanced interplay between supply and demand dynamics, with a consistent increase in operational costs and moderate inventory levels maintaining a stable yet cautious market sentiment. Thus, while the pricing environment wasn't overwhelmingly positive due to the residual effects of last year's downturn, it was certainly on a path of stabilization and gradual recovery, driven by strategic adjustments in production and procurement activities.
Europe
In Q2 2024, the European market for Phthalic Anhydride (PA) exhibited a significant upward trend, driven by various critical factors. Predominantly, the surge in demand from downstream plasticizer markets exerted substantial pressure on prices, with insufficient inventory levels exacerbating the upward momentum. The interplay between robust consumption rates and logistical challenges, particularly due to transportation disruptions, further intensified the bullish sentiment in the market. The overall pricing environment has been notably positive, reinforcing the consistent increase in prices throughout the quarter. Germany, in particular, experienced the most pronounced price fluctuations in the Europe region. The market dynamics were heavily influenced by seasonality factors, where the peak demand during the summer months led to heightened trading activities. This increased demand outstripped supply, causing a significant 6% rise from the previous quarter. Additionally, the year-on-year comparison revealed a 5% increase, underscoring the persistent demand growth and inventory constraints. In the latter half of Q2 2024, the price of Phthalic Anhydride in Germany surged by 6% compared to the first half, reflecting the compounded effects of sustained high demand and logistical bottlenecks. The quarter concluded with Phthalic Anhydride prices at USD 1490/MT (FCA Cologne), reinforcing the bullish market stance. Overall, the increasing price trend for Phthalic Anhydride in Q2 2024 has been unequivocally positive, driven by robust demand, insufficient inventories, and intensified trading activities amid logistical challenges. This consistent upward movement signifies a strong bullish sentiment in the market.
