During the second half of January 2025, the Asian dioctyl phthalate (DOP) market experienced a period of stabilization as upstream cost fluctuations and sluggish downstream demand continued to shape market movements. As of January 22nd, the price of key DOP raw materials, phthalic anhydride (PA) and 2-ethylhexanol (2-EH), showed mixed trends. PA prices fluctuated before stabilizing, while 2-EH prices remained weak and consolidated, leading to overall stable production costs for DOP manufacturers.

Market participants noted that DOP enterprises maintained steady production rates, but the downstream market remained lackluster, limiting any significant upward momentum in prices. Buyers exhibited a preference for lower-price transactions, leading to negotiated pricing during this timeframe. The previous bullish sentiment in the DOP market weakened as bearish factors persisted, ultimately contributing to a stabilizing market trend.

Polyvinyl chloride (PVC), the primary downstream sector for DOP, demonstrated a mixed pricing pattern during the latter half of January. However, midweek fluctuations in crude oil prices led to a weaker futures market, which in turn dampened the overall PVC price trend.

By late January, the DOP market softened due to stable supply and slowing downstream procurement in the PVC sector ahead of the Lunar New Year. Market sentiment remained cautious in the DOP market as purchasing enthusiasm waned and downstream industries focused on immediate needs rather than speculative buying in the APAC region. Additionally, demand contraction due to holiday shutdowns further contributed to the sluggish market atmosphere.

As the market moves into February, DOP prices are expected to remain largely stable with a potential for slight downward adjustments. The primary influencing factor will be the pace of recovery in the PVC sector following the Chinese New Year. Traditionally, post-holiday demand rebounds slowly as industrial activities resume gradually.

Additionally, crude oil price volatility will play a crucial role in determining overall cost trends for DOP. The oil prices are expected to stabilize, and raw material costs may remain steady, keeping DOP price fluctuations minimal. However, if crude oil experiences sharp movements, DOP prices could react accordingly.

Market participants anticipate that trading activity in the first half of February will be muted, with buyers maintaining a wait-and-see approach. As per ChemAnalyst, a stronger recovery in demand will be necessary to support any price increases, while weak fundamentals could extend the stabilization trend. Overall, February is expected to be a cautious month for the Asian DOP market, with a close watch on upstream cost movements and PVC sector dynamics.