Diisononyl phthalate (DINP) prices in Italy turned bearish in the since September and continued into October as plasticizers demand dropped.  The import prices quoted from Korea remained lower due to lowering of freight charges cumulatively to as low as 25 percent in the month. Cost pressure in APAC region, dropped down significantly as multiple PVC producers took their plants offline due to higher stocks and maintenance. LG Chem, a major producer of Korean DINP and PVC both, took it’s VCM and PVC production unit offline. On the demand front, prices of PVC surged in Europe as cost pressure and demand from construction industry increased. The producer price index remained negative although slowed down in pace. Freight charges remained as low as USD 3700/FEU in the given month for European deliveries from Korea.

DINPs supply situation in Italy in September remained bearish compared with August situation. Latest data of Eurostat revealed that Italy’s intermediate goods production almost reached 2021 levels driving the NW Europe markets along with Dutch markets to stabilization. PVC FD Hamburg prices reached USD 954/MT in the month of September 2024, while feedstock prices dropped by 2%. The manufacturing sector also reduced its workforce to cut costs, leading to an overall decline in employment for the third consecutive month and at the fastest rate in four years.  Furthermore, supply of DINP to Europe from Korea remained disrupted as major deliveries of DINP to Italy was previously made in May 2024, as per the latest data. DINP oversupply across the regions with APAC and Middle East continuously running their plasticizers unit pushing the globe to oversupply. Aekyung petrochemicals in Korea, which produces DINP has planned a turnaround for October.

Demand side factors for DINPs was getting stronger MoM basis. Downstream consumption of DINP remained high as immediate price change indicates the same. September saw expansion for October based orders at slower pace. Private sector's performance worsened due to decreased demand. New orders declined for the fourth consecutive month, reaching their lowest point since February. China and Japan’s demand decline for DINP as Plasticized PVC plants reduced production. Reduced demand from APAC markets also contributed to the decline in new orders for DINP. Conversion of ethylene to DINP for PVC remained the major sentiment as September remained relatively a weaker month, consumption wise, ChemAnalyst assessment revealed.

ChemAnalyst assessment for DINP’s October and November have been forecasted for a bearish trend as oversupply in the global market likely to persists due to higher stocks of unsold downstream plasticized PVC and weaker demand outlook in Europe.