DOP chemical is heading to $1.35/lb in early July

By Tom Stundza -- Purchasing, 6/25/2008 9:45:00 AM

Buyers have confirmed that key suppliers have boosted transaction prices by 10¢ in June for dioctyl phthalate, the DOP chemical used mainly as a resin plasticizer. The market price is ending this month at $1.31/lb, which is 31% higher than this time last year. The chemical cost an average 86¢/lb in 2006, $1 in 2007 and $1.19 for the first six months of 2008. “We now have confirmation from suppliers of another 4¢ increase for July 1 and there's even talk that might not be the only increase for next month,” says a buyer at the Teknor Apex compounder of advanced polymer materials in Pawtucket, Rhode Island.

Producers who boosted prices in June include BASF, Eastman Chemical and ExxonMobil. In a series of letter to buyers, Michael D. Bisig, BASF business manager for plasticizers, has written that the increases are required due to the higher prices of key plasticizer raw materials, such as crude oil, natural gas, propylene, and ortho-xylene, as well as the ongoing tight supply of oxo alcohols. “In addition to these raw material-related price developments, the increase is necessary to recapture some of the lost margins caused by the significant increase in energy and distribution costs,” he adds.