The Phthalic Anhydride market rebounded slightly while the downward pressure persisted in the second week of March 2025 in the APAC region, especially the Chinese market. The prices rose slightly by 0.5% week-on-week, reflecting the slight improvement in market conditions and business confidence. The rebound in the market conditions was owed to stabilization of raw material ortho xylene prices amid rising of naphthalene prices in the market. As production expenses started to increase and downstream plasticizer market also witnessed some stabilization, the demand for Phthalic Anhydride faltered compared to the previous week, leading to the rebound in the market dynamics.

The price trend for Phthalic Anhydride was significantly impacted by the changes in supply dynamics in the second week of March 2025. The spot supply of Phthalic Anhydride was sufficient owing to declined raw material prices, o-xylene, and Naphthalene in the previous weeks, leading to steady production in the market. However, the previous week witnessed some stabilization in the feedstock market prices with rising Naphthalene prices in the market impacting the production expenses and supply of Phthalic Anhydride. As supply started to be offset by consolidating demand, the prices started to rebound in the latest week after a few weeks of downward pressure.

The demand dynamics of Phthalic Anhydride were shaped by fluctuating but stabilizing plasticizer production, which directly impacted the demand of Phthalic Anhydride as feedstock from the sector. The downstream plasticizer sector started to witness a rise in load and production activities, pushing the market activity for Phthalic Anhydride in a slightly upward direction. While the consumer key sector started to stabilize, the demand from the construction sector also showed signs of stabilization supported by improving market confidence and a slight rebound in property activity. China’s construction business activity was reported to have increased in February 2025, supporting the stabilization of the sector. As the demand from significant sectors witnessed slight improvement, overall demand of the product started to recover supporting the slight upward market conditions and rise in the prices.

As per the analysis by ChemAnalyst, the prices of Phthalic Anhydride are expected to rise slightly or stabilize in the coming weeks backed by improvement in demand sentiments and rising raw material costs. The upward pressure from rising input costs and recovery of downstream demand may push the prices in an upward direction and lead to a notable rise in the prices after the market slumped in the previous weeks. Overall, the Phthalic Anhydride market is expected to witness positive sentiments and recovery soon.