Published on January 18, 2017

There has been significant rise in PA values last week on back of significant rise in demand for DOP in Asian market. This high has been the highest in last five years. Asian phthalic anhydride margins hit five-year high on strong end-year demand for DOP. Again, low inventory levels has also been cited as one of the major factor for rise in demand and price. PA is prepared from Ortho Xylene and alternative is Naphthalene. Naphthalene-based PA plants in China cut operating rates in the second half of last year amid a restriction on adherence to environmental regulations ahead of the G20 summit in Hangzhou, exacerbating already tight supply. Naphthalene is an alternative feedstock used to make PA that is typically preferred as it is cheaper than OX. Last year in October OX prices surged amid the strong demand for PA and continued to rise throughout the fourth quarter amid stockpiling ahead of the Lunar New Year holidays.