Plasticizer Costs And Demand Drag Down Market Prices Continued To Decline

Since the middle of October, 2018, the market prices of major plasticizer products such as DOP, DOTP and DBP have continued to fluctuate and decline. Weakened cost support and unsatisfactory demand performance are the main reasons for the sustained fluctuating decline of major plasticizer products.

The main raw material phthalic anhydride and butyl octyl alcohol, PTA market price shock slump is DOP, DOTP, one of the main reasons for the success of market price of DBP, under the excess capacity and the market more competitive, plasticizer products with the limited space, according to the raw material market price changes more flexible adjustment, under the costs continue to weaken, the market price of center of gravity down continuously.In addition, after the Spring Festival this year, the downstream PVC film, artificial leather, gloves and other construction recovery time delay, and with the weak macroeconomic environment, continuous construction load is not high, plasticizer limited market demand, the supplier is generally poor, low profit space, we have learned, DOP industry in break-even or slightly more losses, DOTP, DBP in small profit, including DOTP gross profit is obviously declined in the last few years.

As a result, the gross profit of DOTP dropped significantly compared with previous years. In addition to the rapid pace of capacity expansion and slow follow-up of demand, it was also affected by the enlarged price difference between DOTP and DOP.

The main factors influencing the DOTP and DOP spread is the difference between the PTA with phthalic anhydride, phthalic anhydride, 2015-2017 and the difference between the PTA is larger, until 2017, the gap remains near 2000 yuan/ton (3077 yuan/ton, the lowest 1135 yuan/ton, the average price of 1922.47 yuan/ton), DOTP cost advantages are more obvious, the other DOTP is not in the scope of Europe and the United States limits, much as an environmental protection type of plasticizer, the cost and environmental protection under the dual interests drive guide, beginning in 2015, the new DOTP project is more,Part of the focus will be on production and operation in the second half of 2017 and early 2018.From the beginning of 2018, the price difference between phthalic anhydride and PTA narrowed and even turned negative (PTA price was higher than that of phthalic anhydride). The cost advantage of DOTP weakened. Under the situation that DOTP price was higher than DOP and the overall market demand of plasticizer was flat, the market inquiry atmosphere was not high and the transaction was limited.

As a plasticizer industry with severe overcapacity, it is difficult to significantly improve the gross profit of products, and the market price is more flexible to adjust according to the changes of cost and demand.And macroeconomic environment at home and abroad is difficult to reverse, plasticizer market demand or persistent insipid, mid to late may - June market concerns still benzene anhydride as raw materials, butyl octyl alcohol, PTA market movements, such as space is limited short-term benzene anhydride markets continue to fall, still in shock weak butyl octyl alcohol market as the main line, plasticizer products overall cost support strength is not strong.

 

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