Introduction: This week, the DOTP market price increase expanded, and it hit a new high price in the year during the traditional off-season of downstream demand. As of now, the ex-factory price of DOTP in Zhejiang area is 11,300 yuan/ton, up 800 yuan/ton or 7.62% from Monday.
Unexpected volatility in the raw material octanol market unit supports its price rise
The main support factor for DOTP price rise in the near end is the raw material octanol, even if the demand is off-season, it has not been able to stop its upward pace.
Although the raw material octanol market started debugging and restarting in the first phase of Luxi Chemical Industry Co., Ltd. at the beginning of the week, the recovery process was slow, and the output did not have a significant impact on domestic supply. On the contrary, at the beginning of the week, the unexpected tightening of supply caused by the addition of two sets of octanol units that were unexpectedly shut down had a greater impact on market prices, resulting in a sharp rise in octanol prices. Among them, the capacity utilization rate of octanol in the first half of the week dropped to about 80%, which was 13 percentage points lower than the average operating rate of last week.
The price of octanol, the raw material, has risen due to the shortage of goods, and the support of DOTP’s cost side is strong, so the price has risen sharply, setting a new high for the year in the off-season.
However, as the price of DOTP rises to a high level, the psychology of downstream buying has become more repellent. At present, the enthusiasm for chasing up the buying market is not high. The transaction of new orders tends to be stalemate. pressure. However, in terms of cost, there are maintenance plans for the two sets of raw material octanol in Shandong and Jiangsu in the middle and late August, and the supply side is expected to shrink. Therefore, there is still a certain degree of support in the cost of DOTP, thus limiting the profit margin. It is expected that the DOTP market price will run in a high and narrow range.
