- Fluctuations in Crude Oil Prices (2014-2016)
DOP prices are closely linked to the price of crude oil since petrochemical derivatives are used in its production. The sharp drop in oil prices in 2014-2016 due to oversupply and the US shale boom led to a reduction in the cost of raw materials, bringing down DOP prices during this period.
- 2. Chinese Environmental Regulations (2017-2018)
Impact: China, a major producer and consumer of DOP, imposed stringent environmental regulations as part of its efforts to combat pollution. This led to plant closures and reduced output in the chemicals industry, creating supply shortages that pushed up DOP prices in the APAC region.
- 3. US-China Trade War (2018-2019)
Impact: The trade conflict between the US and China introduced uncertainty into global markets, particularly in industries like chemicals and plastics. Tariffs and supply chain disruptions contributed to fluctuations in the price of DOP as demand weakened in certain sectors.
- 4. COVID-19 Pandemic (2020)
Impact: The pandemic disrupted global supply chains and caused a significant drop in demand for industrial products, including those using DOP. Lockdowns and production halts across APAC reduced both supply and demand, leading to price volatility. In the early phase of the pandemic, prices fell due to low demand, but later recovered as economies reopened and demand surged.
- 5. Supply Chain Disruptions and Shipping Costs (2021)
Impact: Post-pandemic recovery led to global shipping bottlenecks, increasing logistics costs. This, combined with high demand for raw materials, drove up DOP prices. Shortages of key raw materials like 2-ethylhexanol, used in DOP production, added to the price increases.
- 6. Ukraine-Russia War and Energy Crisis (2022)
Impact: The war in Ukraine caused energy prices, particularly natural gas, to skyrocket in Europe, affecting global petrochemical supply chains. APAC, while not directly dependent on Russian energy, felt the ripple effects of the energy crisis, leading to increased production costs and a rise in DOP prices.
- 7. Economic Slowdowns and Recovery in China (2023)
Impact: China’s economic performance plays a critical role in APAC demand for DOP. Fluctuations in China’s real estate and manufacturing sectors, combined with post-pandemic recovery efforts, caused price swings. Efforts to stimulate economic growth led to periods of both oversupply and sudden demand surges.
- 8. Environmental and Sustainability Push
Impact: Growing environmental concerns have led to increased scrutiny on the use of phthalates like DOP, with some countries implementing stricter regulations or moving toward alternative plasticizers. This shift has created periodic disruptions in demand and price changes as the industry adjusts.
These events underscore the DOP market’s vulnerability to global disruptions and highlight the need for continuous monitoring of supply-demand dynamics.
