For the Quarter Ending March 2024
North America
In Q1 2024, the North American market for Diisononyl Phthalate (DINP) witnessed a predominantly positive pricing environment. DINP prices demonstrated a bullish trend throughout the quarter, propelled by various factors. Initially, prices experienced a slight uptick in January, driven by improved export demand and low inventory levels. However, this was offset by weakened industrial demand and downward pressure from negative feedstock prices. The situation was further complicated by supply chain disruptions resulting from the Suez Canal crisis.
February saw a more pronounced price decline as demand sentiment waned and industrial activity remained sluggish. Suppliers responded by destocking to better align production with reduced demand forecasts. Despite ongoing supply chain challenges, material costs continued to decrease.
While the supply remained moderate, import supply faced tightening due to shortages in upstream feedstock and disruptions in the supply chain triggered by the Suez Canal crisis. This resulted in inventory pressures and operational challenges for manufacturers. Nonetheless, DINP demand remained steady, with indications of improvement in downstream sectors reflected in newer orders. Manufacturing showed slight improvement, driving up domestic demand for DINP. Furthermore, demand for plasticized PVC in destination countries exhibited signs of recovery, further bolstering overall DINP demand.
APAC
The first quarter of 2024 has witnessed a notable decline in prices for Diisononyl Phthalate (DINP) in the APAC region. Multiple factors have contributed to this downward trajectory, including sluggish demand from the automotive and construction sectors downstream, along with diminished inquiries from key importing nations like China. Additionally, heightened crude oil prices have elevated manufacturing costs for DINP, exacerbating the pricing pressure. Overall, the pricing landscape for DINP in APAC has been unfavorable throughout the quarter. Market sources indicate a moderate influx of new inquiries from automotive industries downstream, predominantly resulting in smaller order transactions. Japan, notably, experienced substantial price fluctuations, marking a sharp decrease compared to the same period last year, with a 14% drop from the previous quarter in 2024. Despite recent stability, DINP prices in Japan closed the quarter at USD 1458/MT for DINP FOB Osaka, emblematic of the prevailing downward market sentiment.
Europe
The pricing environment for Diisononyl Phthalate (DINP) in the Europe region during Q1 2024 has been positive overall. Prices of DINP experienced a bullish trend throughout the quarter, driven by various factors. Supply side remained moderate, with import supply tightening due to upstream feedstock shortages and disruptions in the supply chain caused by the Suez Canal crisis. This led to inventory pressures and challenges for manufacturers. However, the demand for DINP remained stable, with newer orders showing improvement in the downstream sector. Manufacturing improved slightly, leading to an increase in domestic demand for DINP. Additionally, the demand for plasticized PVC in destination countries showed signs of improvement, further supporting the overall demand for DINP.
In Italy, which experienced the maximum price changes, the pricing trend for DINP followed a similar pattern. The Italian domestic demand for DINP remained weaker, but with inventory pressure relaxing as manufacturing continued for PVC. The market saw an improvement in demand sentiment downstream, leading to stable prices and negotiations for European supply contracts. The demand for plasticized PVC in Italy also showed signs of recovery.
In terms of price changes, there was a 4.5% increase in DINP prices in January compared to the previous month. Prices continued to increase in February, with a 4.0% rise. Looking ahead, prices are expected to increase further by 3% in April. The latest quarter-ending price for DINP in Italy is recorded at USD 1647/MT CFR Genoa.
For the Quarter Ending December 2023
North America
In Q4 2023, the North American Diisononyl Phthalate (DINP) market faced a dynamic and diverse landscape. Initially stable, supported by demand from wire and cable production, mid-quarter fluctuations emerged. Varied regional demand, evolving trade dynamics, fluctuations in feedstock costs, and growing environmental concerns contributed to the volatility.
Towards the quarter's end, prices generally declined due to ample inventory levels, growing competition among producers, and anticipation of potential disruptions like stricter regulations and the development of greener alternatives. Lower DINP prices benefited downstream industries, especially wire and cable manufacturers facing cost pressures. However, uncertainty regarding regulations and environmental concerns added complexity for some sectors.
Producers experienced mixed profitability influenced by production costs, hedging strategies, and regional operations. The West Coast saw generally stable to slightly lower prices due to sustained demand and ample supply. The Northeast & Midwest experienced greater volatility due to regional economic trends, import fluctuations, and industry dynamics. Prices in the Gulf Coast exhibited a slight downward trend as demand slowed in certain sectors.
Asia Pacific
In Q4 2023, the Asia Pacific Diisononyl Phthalate (DINP) market exhibited a dynamic and mixed landscape. Initial stability, supported by demand from wire and cable production, was followed by mid-quarter fluctuations. Regional demand variations, with Southeast Asia maintaining stability and China experiencing temporary slumps, were influenced by seasonal factors and economic slowdown. Fluctuations in feedstock costs, changes in import activity from South Korea and Taiwan, and evolving environmental regulations added to market uncertainty. Towards the quarter's end, prices gradually declined due to ample inventory levels, growing competition among producers, and expectations of reduced demand amidst economic slowdown and potential substitution with alternative plasticizers. Lower DINP prices benefited downstream industries, especially wire and cable manufacturers facing cost pressures. Producers experienced mixed profitability, influenced by production costs, hedging strategies, and regional operations. Southeast Asia saw stable to slightly lower prices, while China experienced greater volatility due to internal economic trends, trade fluctuations, and environmental concerns. In India, prices exhibited a slight downward trend as demand slowed down in certain sectors.
Europe
In Q4 2023, the European Diisononyl Phthalate (DINP) market faced a complex landscape. Initial stability, supported by demand from wire and cable production, was followed by mid-quarter fluctuations due to weakening demand in construction and furniture sectors. Evolving regulations, especially concerning phthalates like DINP, heightened uncertainty, impacting sectors like children's toys. Fluctuations in feedstock costs, influenced by phthalic anhydride and n-nonanol prices, affected regional pricing. Geopolitical uncertainties from the ongoing conflict in Eastern Europe further disrupted trade flows and economic confidence. Towards the quarter's end, prices declined due to ample inventory levels, growing competition among producers, and anticipation of continued challenges such as stricter regulations and potential substitution with alternative plasticizers. Lower DINP prices benefited downstream industries like wire and cable manufacturers, particularly those facing cost pressures. However, uncertainty regarding regulations and environmental concerns added complexity for some sectors. Producers experienced mixed profitability influenced by production costs, hedging strategies, and regional operations. Western Europe saw generally stable to slightly lower prices due to weaker demand, regulatory concerns, and ample supply. Eastern Europe experienced greater volatility due to regional economic trends, trade flow fluctuations, and competition among producers.
