Multiple Negative Factors Weigh On The DOP Market, With Weakness Likely To Persist In The Short Term

Since April 2026, the domestic DOP market has remained trapped in a prolonged downturn. Weakened downstream demand and the continued decline in raw material octanol prices have created a dual drag on the market. Under these bearish pressures, trading activity has been sluggish, and companies have proactively reduced operating rates and cut prices to secure sales, pushing the industry into a long-cycle downtrend. Based on JLC data, this article reviews the current market conditions and offers a short-term outlook.

Since entering a downtrend in April, the domestic DOP market has experienced a brief and modest rebound, but both the strength and sustainability of the rebound have been insufficient, resulting in an overall weak performance. The weakness in the market is primarily driven by dual pressures from both demand and cost sides.

On the demand side, sales of downstream PVC flexible products have remained sluggish, and companies continue to follow a just-in-time purchasing model. Earlier, the surge in DOP prices significantly reduced downstream users’ and traders’ acceptance of high prices, and market purchasing sentiment has remained weak. Intermediaries’ inventory turnover is slow, and it is difficult to destock goods. To promote sales, they have had to continuously lower quotes, making discounted selling the norm in the market.

On the cost side, new octanol capacity has come onstream, leaving the market well supplied. Producers are focusing primarily on shipments, and prices have fallen लगातार. The DOP industry is also facing weak demand and declining feedstock costs; bearish factors are transmitting step by step, prolonging the product’s downward cycle.

Continuous sluggish sales directly lead to inventory backlog issues. During the downward phase of the market, many businesses are experiencing inverted purchase and sales prices, increasing the risk of losses. To control inventory levels and reduce losses, the industry has generally chosen to cut production and reduce output. According to data from Jinlianchuang, since April, the operating rate of DOP has been continuously declining, with industry operations dropping from around 70% to about 55%.