The prices of Dioctyl Phthalate (DOP), a commonly used plasticizer, continued to decline across Asian markets in March 2025. The downtrend was mainly driven by falling raw material costs, oversupply, and sluggish demand from downstream sectors such as construction and unsaturated polyester resins.

The DOP prices dropped across major provinces like Jiangsu, Shandong, and Zhejiang in China. The dip in prices was attributed to weakening cost support and growing inventory pressure among DOP producers.

One of the key reasons behind the declining price trend was the drop in the cost of feedstock materials—particularly 2-ethylhexanol (2-EH) and isooctanol. The price of 2-EH fell throughout March 2025. Similarly, isooctanol prices experienced a brief rise before dropping 0.58% between March 10 and March 14 due to new production capacity being added and a shift from tight supply to oversupply.

Phthalic anhydride (PA), another crucial raw material for DOP, fluctuated during the month. Although PA prices showed some upward movement mid-month, the overall trend stabilized towards the end of March. With both isooctanol and PA showing signs of weakness, cost support for DOP producers diminished.

The downstream demand situation in the Asian DOP market was also soft in March 2025. The slow restart of terminal industries after the Lunar New Year and muted activity during the Eid al-Fitr and Ramadan periods reduced plasticizer consumption across the regional market. Key end-use sectors such as construction and unsaturated polyester resin industries faced challenges like delayed projects and weak order flow. This led to a cautious buying sentiment in the market.

Manufacturers of plasticizers also ramped up production during March 2025, leading to an oversupplied market. As a result, DOP inventories rose and suppliers came under pressure to lower prices. Despite stable production operations and relatively flat downstream market conditions, demand remained subdued, and buyers were generally inclined toward price negotiations for the time being in the Asian DOP market.

Market participants expect DOP prices in Asia to remain weak in the near term. With oversupply and sluggish demand persisting, and raw material costs continuing to fluctuate downward, there is limited room for any major price recovery. However, some sources noted that the bearish pressure may ease slightly if inventory levels normalize and downstream sectors begin restocking ahead of summer demand.

As per ChemAnalyst, DOP producers in Asia are likely to face tight margins, with market fundamentals in the regional market suggesting continued softness across the downstream sectors, including construction and Polyester Resins in April 2025.