Rising Demand and Low Inventories Drive Up Global Phthalic Anhydride Prices

Global supply shortage and a slight rise in the price of key raw material o-Xylene ensure a rising price of Phthalic Anhydride in the market. As an exporting nation, the cost of shipping Phthalic Anhydride to other countries impacted the market values of the petrochemical derivative. Over the last seven days, the logistics industry has remained flat, although United Parcel Service notably gained 3.3%, as quoted by the traders and the merchants.

The rate of wage increase remained moderate at 0.3% m/m (4.2% y/y), but a disclaimer was there that added recently the productivity trends which have resulted in extremely high unit labor cost growth, which means that the labor market continues to provide upside risks to inflation. The labor market is generally becoming less tight but still extremely tight.

Phthalic Anhydride's price remained constant in the USA market. Additionally, the market for downstream plasticizers fluctuated momentarily. The prices of Phthalic Anhydride escalated in the USA market, with costs ranging at USD 1779/ton FOB Louisiana. In the previous year, product supply had been weaker, although the US logistics sector had increased by 3.6% in the period anticipating the expected earnings to increase annually. The freight charges from North America West Coast to China elevated by 3% as per sources of shipments rate.

The global demand for Phthalic Anhydride from downstream plasticizers and resin industries increased while the supply remained moderate to low, impacting the product's inventory level. More sales are being generated by the Phthalic Anhydride industries in the region, a procurement improved from the inventory of the product as per quoted by the traders. Investors are optimistic about the product, with more revenue being generated by the manufacturing companies.

With the increase in demand for the product, the inventory level of Phthalic Anhydride is depleting, with the traders in the region impacting the market sentiments of the petrochemical-based derivatives.