Over half the production of phthalic anhydride is used in the manufacture of phthalate esters, employed as plasticisers in PVC. Other major uses are in polyester resins and (decreasingly) in alkyd resins. About 10% of phthalic anhydride production is used in the production of isatoic anhydride and chemical feedstock.

The major end use of phthalate esthers is in the construction and transportation industries. Alkyd resins containing PA are used in solvent-borne protective coatings. As paint technology increasingly utilises water-borne technologies, many PA-based alkyds have lost out to alternative raw materials.

Other minor uses are in the manufacture of dyes, magnesium peroxyphthalate for detergents, rubber retarder, scorch inhibitor for rubber stocks, hardener for resins, synthesis of phenolphthalein and other phthaleins, curing agent for epoxy resins, fire retardants, polyester resin cross-linking agents and drying oil modifiers.

PA can irritate the skin, throat and eyes.

ICIS pricing quotes phthalic anhydride in Europe, Asia-Pacific and the USA.

Frequency:

Published weekly on Fridays in Europe and Asia-Pacific.

Published weekly on Tuesdays in USA.

Phthalic Anhydride (EUROPE)

Weekly Price Assessments:

Phthalic Anhydride Contract Prices

• FD NWE (LIQUID) Monthly (EUR/MT & conversion to US CTS/LB)
• FD NWE (FLAKE) Monthly (EUR/MT & conversion to US CTS/LB)

Phthalic Anhydride Spot Prices

• FD NWE (LIQUID) (EUR/MT & conversion to US CTS/LB)
• FD NWE (FLAKE) (EUR/MT & conversion to US CTS/LB)

Phthalic Anhydride Feedstock monthly Contract Prices

• ORTHOXYLENE FD NWE (EUR/MT)

Phthalic Anhydride (ASIA-PACIFIC)

Weekly Price Assessments:

Phthalic Anhydride Spot Prices

• CFR CHINA MAIN PORT (USD/MT & conversion to US CTS/LB)
• CFR S.E.ASIA (USD/MT & conversion to US CTS/LB)

Phthalic Anhydride Feedstock Prices

• ORTHOXYLENE CFR N.E.ASIA (USD/MT)

Phthalic Anhydride (USA)

Weekly Price Assessments:

Phthalic Anhydride Monthly Contract Prices

• FOB MOLTEN (US CTS/LB & conversion to USD/MT)
• DEL FLAKE (US CTS/LB & conversion to USD/MT)

Phthalic Anhydride Feedstock Prices

• ORTHOXYLENE FOB (US CTS/LB & conversion to USD/MT)

General Information:

Assessment window: Price assessments are based on information supplied by market participants through the week up to close of business on Fridays at 1700 hours in London, Singapore and on Tuesdays at 1700 hours in Houston.

Specification: Flakes and molten product are quoted with a minimum purity of 99.7%.

Timing: Cargoes loading or delivered four-six weeks forward from the date of publication.

Terms: 30-60 days after bill of loading date. In Asia credit terms are L/C up to 90 days.

Standard cargo size: A typical cargo size in Europe is 1,000 tonnes for bulk volumes, while a typical truck/railcar is circa 20-25 tonnes. In Europe, average PA contract volumes range from a few thousand to 5,000 tonnes/year. The majority of European contract business is liquid PA, and to a much lesser extent PA flake, as the latter is primarily spot based.  In Asia, cargo sizes range from 20 tonnes to more than 500 tonnes, but assessed prices are generally based on 100 tonnes and above. US truck cargo sizes are around 20 tonnes, while railcar bulk volumes are typically 180,000 lb.

Assessment basis: European contract and spot price ranges are assessed following verification from major buyers and sellers in northwest Europe. European price quotations are published on a free delivered (FD) basis and incorporate discussions and reported/confirmed deals across the region.  

In the absence of deals, spot prices can also move based on market sentiment. PA contracts take into account both formula and freely negotiated business. Formula related business is based on the orthoxylene feedstock price plus an average fee, which includes manufacturing, packaging and freight costs.

Commentary in the USA report centres on demand from both the plasticisers and UPR sectors and price movements in upstream markets. PA prices are quoted monthly and mirror the previous month’s contract price changes in feedstock orthoxylene (OX). While most demand is for molten material, imports usually feature flake (or solid) PA.

The Asia report reflects bids, offers and transactions throughout the week. Generally, imports to southeast Asia are higher than imports to China because China is a lot more price-sensitive.

The CFR China spot price quote includes imports from ASEAN (Association of South East Asian Nations) which now enjoy zero tariffs in accordance with a free trade agreement with China which took effect 1 January 2009. Southeast Asian cargoes exempted from import tariffs will be included in the assessment after their import tariffs have been normalised to the 6.5% basis.  

The CFR S.E.Asia assessment mainly reflects Singapore, Malaysia, Indonesia, Vietnam, the Philippines and Thailand.

All regional reports offer market commentary that includes details of traced transactions, news on the supply/demand balance, export/import information, contract price negotiations and general sentiment for price direction. Where applicable there is product information, comments on up and downstream market developments and general market intelligence. The US report carries import/export data supplied by the US Department of Commerce.

11 April 2013