The Asian Dioctyl phthalate (DOP) market experienced a downturn in November 2024, driven by declining demand and weaker cost support. Downstream PVC product manufacturers gradually reduced production as the traditional market off-season set in. The onset of colder weather in Northern Asia further exacerbated the decline in demand, placing downward pressure on the overall plasticizer market. This seasonal slowdown significantly impacted market dynamics, as consumption levels failed to meet expectations for most of the month.

Raw material trends also played a critical role in the DOP pricing dynamics. The price of 2-ethylhexanol (2-EH), a key raw material for DOP, exhibited a declining trend at the end of November 2024. This fluctuation was primarily attributed to temporary shutdowns in 2-EH production facilities mid-month, which constrained supply and briefly drove prices upward. However, the limited duration of these shutdowns, coupled with muted demand, led to a subsequent price decline by the end of the month. The weakening of 2-EH prices underscored the challenges faced by upstream markets in supporting stable DOP costs.

DOP prices followed a downward trajectory in November 2024, reflecting the weak downstream PVC production demand. Market transactions were heavily influenced by buyer-seller negotiations, with many buyers adopting a wait-and-see approach due to uncertain market conditions. The bearish sentiment outweighed the bullish factors, resulting in subdued market activity and limited trading volumes. By late November, DOP quotations were overall stable, but the actual transaction prices often fell lower due to aggressive negotiations.

Looking ahead, the DOP market in Asia is expected to remain under pressure in December. On the cost front, the prices of raw materials such as 2-EH and phthalic anhydride (PA) are projected to fluctuate further towards the year-end, with a potential downward trend. As a result, the cost of plasticizers including DOP is likely to decrease, adding to the bearish outlook. Demand-side challenges will persist as the seasonal off-peak period continues, further dampening consumption from downstream industries. PVC production and inventory levels are anticipated to decline, curbing the demand for DOP and other plasticizers.

Although there is some stabilization in downstream market conditions, purchasing activities are expected to be driven primarily by immediate needs rather than bulk procurement, leading to constrained transaction volumes. In early December, DOP quotations are expected to stabilize in the Asian market. However, the market will remain cautious, with limited upward momentum. The stabilizing trend in raw material prices and operations of DOP producers may provide some support, but the overall sentiment leans toward a weakly bearish outlook in the coming weeks. As per Chemanalyst, while the DOP market in Asia might exhibit signs of stabilization in December, the combination of cost reductions and subdued demand will likely cap any significant price recovery in the near term.