The prices of Phthalic Anhydride remained stable in the week ending on 20^th December 2024. The stability in the prices was observed after a period of bearishness as the prices continued to decline in the previous weeks. The prices were influenced by current market dynamics including demand and supply and raw material costs and so on. The global market dynamics also influenced the overall price trends.

The stability in the prices was influenced by stable feedstock Naphthalene prices in the market. The stable Naphthalene prices reflected the overall stable production cost of Phthalic Anhydride which influenced the market dynamics. The plasticizer market remained under pressure as the holiday season approached. The bearish market sentiment was also supported by increasing demand for bio-based plasticizers in the market. The need for using environmentally friendly products has led to increasing consumption and market share of Bio-based plasticizers which in turn impacted the overall demand of conventional plasticizers in the market.

Of the various types of plasticizers namely- phthalate, non-phthalate, and bio-based-the bio-based category is expected to witness the highest CAGR between 2024 and 2031. The key downstream sector that is construction sector also witnessed stable to weak conditions which governed the overall demand fundamentals for Phthalic Anhydride in the USA market. According to the most recent data, the number of New residential construction and privately owned housing starts was around 1,289,000 in November 2024 which dropped by 1.8% as compared to the previous month reflecting the declined demand of Phthalic Anhydride from construction sector due to the bearish market sentiment. Another key downstream sector includes automotive sector. Auto sales in the US from January to October 2024 were moderate, but December sales are expected to build on strong November results, reaching 1.45 million units, or a 16.5 million units’ sales pace (SAAR). This would match November’s performance and lead to a fourth-quarter average of 16.4 million units, up from 15.6 million units in the first three quarters, the highest since Q2 2021. However, volatility is expected in 2025. US auto sales are projected to reach 16.18 million units in 2025, a 1.2% increase from 2024, in an uncertain market environment.

On the supply side, Crude oil market witnessed a slight upward trend while feedstock naphthalene prices maintained stable market dynamics. With low demand and ample supply in the market, Phthalic Anhydride market continued to witness bearish market sentiments.

Looking further, the prices of Phthalic Anhydride may show some traction in the coming weeks due to increased demand from downstream automotive sector. Notable increase in demand can only uplift the current market scenario of Phthalic Anhydride. Notable fluctuations in feedstock Naphthalene market may also impact the overall price trend for Phthalic Anhydride.