Notable stability Observed in Phthalic Anhydride Prices in USA Market

Phthalic Anhydride prices showed remarkable stability in the USA market. The prices remained stable throughout the month of August and continued till the end of the previous week that is 13^th September. The stability of the prices could be attributed to the influence of various macro and micro factors which affected the market conditions and ultimately led to balanced market dynamics. The demand and supply dynamics for Phthalic Anhydride in the country remained balanced which supported the stable market scenario.

The primary driving factor regarding the overall stable market conditions for Phthalic Anhydride was stable feedstock prices in the market. Naphthalene prices remained stable in the second week of September which supported the overall stable market dynamics. The downstream uses of Phthalic Anhydride include usage in paints and coatings industry. The paints and coating industry is often linked directly to the performance of construction sector. The performance of construction sector remained relatively flat in the USA market which contributed to the stable price trend for Phthalic Anhydride. The first month of third quarter also showed minimal fluctuations in the overall spending in the construction sector that is Construction spending during July 2024 was estimated at a seasonally adjusted annual rate of USD 2,162.7 billion, 0.3 percent below the revised June estimate of USD 2,169.0 billion. The subdued and flat performance of construction sector was continued in the next month which resulted in flat demand of chemicals like Phthalic Anhydride in the market.

In the resin market, the demand remained weak as new orders declined in the market and sluggish procurement contributed to a cautious market environment, with manufacturers maintaining ample raw material stocks. The demand from various sectors like resins and construction sector reflected the overall slow economic outlook of the country which affected the overall manufacturing of Phthalic Anhydride in the country. The country faced supply disruptions amid the peak hurricane season which affected the supply chain and put upward pressure on the prices. Upward pressure from the supply chain and declined demand contributed to the overall stable demand and supply dynamics in the country which influenced the prices. The PMI of the country indicated contraction of the manufacturing sector reflecting the deteriorated business activities in the market.

Looking forward, the demand dynamics are not expected to improve in the coming weeks as the economic condition of the country is not showing positive signs of improvement. Improvement in the weather conditions could favour the manufacturing sector which could bolster the overall manufacturing of various products leading to positive outlook for Phthalic Anhydride in the market. Improvement in demand dynamics could lead to increased prices of Phthalic Anhydride in the region.