For the Quarter Ending June 2025
North America
• The Phthalic anhydride Price Index in the U.S. registered a quarter-on-quarter decline of 0.9%, reflecting a market shaped by fluctuating sentiment, initial softening followed by stability through In June, the price held steady at USD 1468/MT FOB Texas.
• The Phthalic anhydride Price Index trended downward in early Q2, declining amid weak plasticizer demand and underperformance in printing and packaging. However, the price stabilized in later half as supply aligned closely with reduced demand, avoiding further deterioration.
• The Phthalic anhydride Production Cost Trend remained relatively stable, supported by consistent feedstock availability. Domestic production was steady yet underutilized.
• The Phthalic anhydride Demand Outlook was marked by persistent weakness across construction, automotive, and plasticizer sectors. While infrastructure projects and electric vehicle production lent minimal support, broader consumption trends remained flat due to economic uncertainty, cost-conscious inventory practices, and labour constraints in construction.
• The plasticizer segment continued to operate in a subdued mode, with limited activity across consumer goods, construction, and automotive industries. Conservative procurement and downstream destocking kept pressure on PA demand despite slight recovery in flexible materials used in EVs.
• The U.S. market benefited from relatively stable feedstock economics, with lower tariff exposure and regionally integrated supply chains buffering against global disruptions. This helped producers preserve margins without resorting to significant price reductions, even as demand waned.
• The Phthalic anhydride Forecast for early Q3 points toward continued pricing stability, assuming no major shifts in feedstock or demand fundamentals.
APAC (China)
• The Phthalic Anhydride Price Index in APAC fell by 1.4% quarter-on-quarter in Q2 2025, with the market consolidating in June after price volatility earlier in the quarter at USD 839/MT Ex-Dalian, supported by low inventories and constrained supply despite weak downstream demand.
• Why did the prices decline in July 2025? Operating rates at domestic production units declined due to scheduled maintenance activities, tightening the market, and resulting in reduced availability, particularly for naphthalene-based material. This tightening in output helped offset demand-side weakness, maintaining a balanced supply landscape.
• The Phthalic Anhydride Production Cost Trend showed mixed signals. Industrial naphthalene prices declined slightly, while ortho-xylene (OX) showed intermittent volatility. These shifts created soft cost support, limiting upward momentum in the market.
• The Phthalic Anhydride Demand Outlook remained weak across APAC, with the plasticizer sector reducing operating rates and showing limited appetite for bulk procurement. Buyers largely followed cautious, on-demand strategies due to ample inventories and soft end-use consumption.
• Construction-related demand continued to underperform, further capping broader consumption of phthalic anhydride used in resins, adhesives, and coatings, and reinforcing the market’s bearish tone.
Europe (Germany)
• The Phthalic anhydride Price Index in Europe declined by 1.6% in Q2 2025, with prices falling from to USD 1195/MT FCA Cologne by June 2025, highlighting a bearish price trajectory despite intermittent phases of stability.
• The Price Index showed fluctuations across the quarter as it began with marginal declines due to softening demand, followed by brief price stability. However, by end of the quarter prices dipped again, reflecting market vulnerability amid persistent macroeconomic headwinds.
• Phthalic anhydride production cost trend remained relatively stable, supported by consistent pricing of feedstocks like ortho-xylene and industrial naphthalene. Domestic producers in Germany maintained moderate operating rates, aligning output with subdued downstream orders.
• The Phthalic anhydride demand outlook in Europe remained weak overall. Despite some support from Germany’s industrial coatings and resins segment, core demand drivers like plasticizers and construction exhibited signs of stagnation. Cautious downstream procurement and abundant inventories further contributed to a restrained market sentiment.
• PA consumption in Germany’s construction sector showed no meaningful recovery during Q2. Residential and commercial activity remained under pressure from high input costs and low building confidence. Although civil projects lent marginal support in mid quarter, they weren’t strong enough to lift overall sentiment.
• The Phthalic anhydride forecast for July 2025 anticipates continued downward pressure on the Price Index, driven by oversupplied conditions and persistently weak demand from both plasticizer and construction sectors. With no major cost-side inflation expected, prices are likely to edge lower unless there is a sharp revival in downstream activity.
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.
Frequently Asked Questions (FAQ)
1. What was the overall Phthalic Anhydride Price Index trend in the USA during Q2 2025?
The Phthalic Anhydride Price Index in the USA showed marginal fluctuations throughout Q2 2025, reflecting a balance between stable production costs and subdued demand. The market remained mostly rangebound, with price movements closely linked to feedstock ortho-xylene values and downstream plasticizer consumption trends.
2. How did demand from downstream sectors impact the USA market in Q2?
Demand remained sluggish in Q2, especially from the plasticizer and construction sectors. While automotive-related plasticizer use remained stable, construction activity was dampened by elevated interest rates and weaker housing starts, limiting the overall Phthalic anhydride demand outlook.
3. Were there any disruptions in Phthalic Anhydride production or supply in the USA during this period?
No significant disruptions were reported in Q2. Domestic Phthalic anhydride production cost trends remained stable due to predictable feedstock supply. Producers operated at steady rates, and supply chains remained intact, ensuring product availability.
4. What is the price forecast for Phthalic Anhydride in the USA for July 2025?
The Phthalic anhydride forecast for July 2025 suggests slight downward pressure due to continued weakness in construction demand and adequate supply levels. Unless a significant uptick in downstream consumption emerges, prices are expected to remain soft or decline marginally.
