Adjustment of DOTP price weakness in October

According to the data monitoring of the business community, the DOTP price was adjusted by wide shocks in October, and the plasticizer market was adjusted by weakness in October. As of October 31, the average DOTP price was 9975 yuan/ton, down 1.24% from the average price of 10100 yuan/ton on October 1 at the beginning of the month. Although the raw material isooctanol rose for many times in October, it quickly fell back after a short rise, while PTA’s price fell more sharply in October, with insufficient cost support. In October, DOTP’s price was adjusted due to weak shocks.

Price trend of raw materials

According to the data of the business association; As of October 31, the price of isooctanol was 9166.67 yuan/ton, up 2.61% from 8933.33 yuan/ton on October 1 at the beginning of the month. In October, the price of isooctanol had two peaks of rise. At the beginning of the month, the demand of enterprises to replenish the stock recovered. In the middle of the month, the supply of isooctanol enterprises for maintenance decreased. However, the market demand for isooctanol remained weak, and the support for the rise of isooctanol was insufficient. After two rises, the price of isooctanol fell rapidly. In the future, the support for the rise of isooctanol was limited, and the price of isooctanol was mainly adjusted by wide shocks. The rise of raw materials is not supported enough, and the DOTP price is expected to stabilize due to shocks.

According to the data of the business community, as of October 31, the PTA price was 5700 yuan/ton, down 10.63% from the price of 6378.33 yuan/ton on October 1 at the beginning of the month. In October, PTA overhaul and production reduction capacity decreased compared with the previous month. PTA terminal demand is weak, resulting in further accumulation of polyester factory inventory, lack of positive impetus, PTA downward pressure is large. The price of raw materials fell, and the downward pressure on DOTP increased.

The market of plastic products remained weak in October

It can be seen from the output histogram of plastic products that the output of plastic products will decline slightly in 2022. Although the output will recover slightly in September, the overall market of plastic products remains weak. In addition, the domestic manufacturing industry shrank in October. With the decline of the operating rate of PVC enterprises in October, the overall industry inventory increased, the downstream demand digestion capacity was insufficient, and the PVC demand expectation was insufficient. Downstream market is still weak, and plasticizer DOP price has great downward pressure.

Future market expectation

According to DOTP data analysts of the business community, the price of DOTP raw material isooctanol rose repeatedly in October without success, PTA prices continued to fall sharply, DOTP costs fell, and DOTP growth supported the decline; On the demand side, the domestic manufacturing purchasing manager index (PMI) declined, the macro-economy was weak, the expected decline in plastic product output, the weak demand in the plasticizer market, and the downward pressure on DOTP increased. In the future, the demand is still weak, and the cost support is insufficient. It is expected that the DOTP price will weaken in a wide range.