Dibutyl Phthalate Prices Dropped Amidst Modest Inquiries

New Delhi: In August 2022, Dibutyl Phthalate (DBP) price movement has been consistent, and product prices have slumped again in India. As per data sources, the product prices are hovering at INR 129840/MT and decreased by almost 9% in the domestic market.

Previously, the feedstock Propylene cost support was reduced and quoted low from major petrochemical industries like BPCL and RIL after the reduction in Crude Oil costs impacted by high Russian oil imports at low prices. It caused a substantial decrement in raw material Iso Butanol costs. At the same time, the feedstock Phthalic anhydride prices also contracted significantly in the past few weeks due to the reduction in upstream petrochemical costs and less demand from downstream industries. Consequentially, it negatively impacted DBP's production costs.

The previous stock of DBP is available at low costs in the market as the prices decreased significantly in the past month, and product offtakes were average. Due to the depressed cost support, the domestic traders revised their quotations negatively to improve offtakes by domestic plasticizer PVC producers and clear the stocks from the market. Currently, the demand is modest from the construction sector as downstream producers are cautious while making any purchase.

Recent sources indicate that the feed propylene prices are now stabilized and have started improving in the region. Russian oil imports have reduced in the country compared to the previous month. Also, fuel and energy costs are increasing in the country due to gas supply shortages from Russia. It will increase the upstream cost pressure by boosting the production values of feed Oxo alcohol and phthalic anhydride. Also, reduced volumes of crude oil and gas and increased oil costs from OPEC indicate that inflation is knocking on our doorstep, resulting in cost pressure on industries. So, analysts are now estimating that the prices will stabilize and incline upward in the upcoming months with the escalation in product orders from plasticizer manufacturers.