1、 Octanol and DOP market rise significantly before the Dragon Boat Festival

Before the Dragon Boat Festival, the domestic octanol and DOP industries experienced a significant rise. The market price of octanol has risen to over 10000 yuan, and the market price of DOP has also risen synchronously. This upward trend is mainly driven by the strong rise in the price of raw material octanol, as well as the impact of temporary shutdown and maintenance of some devices, which has enhanced the willingness of downstream users to replenish octanol.

2、 Octanol’s strong push for DOP market rebound

Octanol, as the main raw material of DOP, has a significant impact on the DOP market due to its price fluctuations. Recently, the price of octanol in the market has increased significantly. Taking the Shandong market as an example, the price was 9700 yuan/ton at the end of May, and later rose to 10200 yuan/ton, with a growth rate of 5.15%. This upward trend has become the main driving force for the rebound of the DOP market. With the rise in octanol prices, DOP merchants are actively following suit, resulting in an increase in market trading volume.

3、 High level trading in DOP market obstructed

However, as market prices continue to rise, trading of high priced new orders is gradually being hindered. Downstream users are increasingly resistant to high priced DOP products, leading to light new orders. Taking the Shandong market as an example, although the price of DOP has increased from 9800 yuan/ton to 10200 yuan/ton, with a growth rate of 4.08%, end users have reduced their willingness to purchase against the backdrop of intensified risk of chasing high prices, resulting in a bearish upward trend in the market.

4、 Market Outlook after Dragon Boat Festival

After the end of the Dragon Boat Festival holiday, the price of raw material octanol experienced a high level decline, which had a certain negative impact on the DOP market. Adding to the weak demand side, there is a phenomenon of profit sharing and shipping in the DOP market. However, considering the limited fluctuations in octanol prices and DOP cost factors, the overall decline is expected to be limited. From the midline perspective, the DOP fundamentals have not changed much, and the market may enter a high-level correction cycle. But it is also necessary to be wary of potential cyclical rebound opportunities that may arise after the stage falls. Overall, the market will still exhibit narrow fluctuations.

5、 Future prospects

To sum up, the domestic octanol and DOP industries experienced a significant upward trend before the Dragon Boat Festival, but the high level trading was blocked, making the market empty. After the Dragon Boat Festival, the DOP market may experience a pullback due to the decline in raw material octanol prices and weak demand, but the overall decline is limited.