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Stability in Phthalic Anhydride Markets: US and Europe Maintain Balance Amid Fluctuating Feedstock Prices
Stability in Phthalic Anhydride Markets: US and Europe Maintain Balance Amid Fluctuating Feedstock Prices

Stability in Phthalic Anhydride Markets: US and Europe Maintain Balance Amid Fluctuating Feedstock Prices

  • 24-May-2024 2:52 PM
  • Journalist: Gabreilla Figueroa

Cologne, Germany: The trend of Phthalic Anhydride in the US and German markets is witnessing stability due to the maintained equilibrium between supply and demand. The downstream plasticizer enterprises are moderate and the existing inventory levels of Phthalic Anhydride are sufficient to meet the demand. Therefore, the production rate along with the trading activities among the significant manufacturing units are being regulated to prevent potential interference in the market scenario of Phthalic Anhydride.

In the European market, the Phthalic Anhydride trend along with the feedstocks, Naphthalene and Ortho-Xylene, are maintaining their stability. During the week ending on 17th May 2024, the Phthalic Anhydride market followed the same price as the previous week at USD 1345/MT (FCA-Cologne). The production cost of Phthalic Anhydride is stable as well due to the continued stability in the feedstock market. The demand from the downstream Plasticizers is moderate as well as manageable by the existing inventory levels of  Phthalic Anhydride. When analyzing Europe's "soft landing," a significant concern arises: its economy has struggled to achieve significant growth compared to the consistently robust expansion seen in America. Excluding Ireland, where data may be distorted due to multinational corporations minimizing tax obligations, the EU's GDP has only increased by approximately 3% since 2019, in stark contrast to America's 9% surge. Nevertheless, there are signs of improvement in Europe's economic outlook. Data released on May 15th indicates that the eurozone's economy expanded by 0.3% in the first quarter of this year compared to the previous quarter. This marks the first significant growth after six consecutive quarters of stagnation, enabling the currency bloc to exit a recession.

Similarly, the US Phthalic Anhydride market is also showcasing a steadiness in the market sentiment despite the fluctuation in the feedstock markets. The Ortho-Xylene is following a downward price trend whereas Naphthalene is continuing with stable market sentiment, resulting in the fluctuation in the production cost of Phthalic Anhydride. The adequate inventory levels of Phthalic Anhydride are fulfilling the demand from the domestic as well as the overseas downstream Plasticizers market, keeping the prices of the commodity stable. Furthermore, contributing to the stable market scenario, the prices of Crude Oil are also stable keeping the energy cost steady and therefore, contributing to the overall Phthalic Anhydride trend.

As per ChemAnalyst, the Phthalic Anhydride market is anticipated to increase in the upcoming weeks due to the increase in the demand from the downstream Plasticizers market which may enhance the consumption rate of Phthalic Anhydride resulting in the supply deficiency, therefore, the prices of Phthalic Anhydride are expected to be increasing.

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