Environmental Plasticizers: DOTP Development Encountered Bottlenecks

As the construction of terminal enterprises was generally later than the same period this year, the contradictions accumulated in the development of DOTP industry began to emerge under the poor situation of demand follow-up.Because shipment, mainstream DOTP enterprises generally have higher inventory pressure, low price on promotion activity, DOTP prices remains near the cost line, and later as the south China, central China new capacity will be put into production, the price war escalating trend, here are to simple analysis DOTP problems and challenges faced by industry development.

1. The upstream raw materials are mostly monopoly enterprises price rise causes the cost pressure is too high. 

Recently, due to the continuous rise of PTA and octanol as raw materials, DOTP enterprises are facing great cost pressure. Some enterprises even abandon the production of DOTP and transform the device into other plasticizer products, which has never happened before.DOTP important raw materials PTA were surging, in a short span of time up nearly a month 500 yuan/ton, but also stand to 41 months prices high, to take into account the PTA enterprises mainly supply downstream polyester, and DOTP business purchases is usually by tail single price, more than the actual price higher than the market price 200 yuan, together with the other material octanol gains momentum, DOTP enterprise widespread complaints, bad increasingly prominent and loss of pressure.

2. The problem of excess capacity storage DOTP enterprises low price competition action 

In the past 2017, the capacity of DOTP increased by about 220,000 tons, which does not include the capacity under construction or the long-term parking capacity for the resumption of operation. Major plasticizer enterprises, such as qilu plasticizer, liancheng and vanda, have added and expanded DOTP devices.From the perspective of region, south and east China are still important growth points.DOTP enterprises not only face the competition in the industry, but also the face of price dumping other cheap alternatives, and traders look for OEM production, presents the fast growth, the number of DOTP if there is no corresponding supporting and follow up the downstream demand, DOTP enterprises difficult to maintain high profit margins, the low price competition will only make DOTP industry long-term turbulence near the cost line, the DOP enterprise expansion of savage, a few years ago as a withdraw.

3. The slow growth prospects of DOTP demand of downstream enterprises encounter bottlenecks.

Most of the downstream companies are PVC plastic soft products. Because DOP and DBP have been used for a long time in the past, most of them are used to purchase o-benzene plasticizers for preparation without clearly indicating that environmental plasticizers must be used.Because DOTP is different from DOP in use share number, if general material makers add the share number according to the original number, there will usually be oil, cracking and other problems, which gives the impression that DOTP is not easy to use for downstream enterprises. In addition, the price of o-benzene plasticizer is generally 200 to 300 yuan/ton lower than DOTP.It also tends to be o-benzene plasticizer.


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