Analysis of China’s PA Export – May 2025

1. Growth in Export Volume and Prices

In May 2025, China’s phthalic anhydride exports reached 14,337.6 metric tons, up 23.79% month-on-month (MoM) and 22.1% year-on-year (YoY). Cumulative exports from January to May totaled 66,917.985 metric tons, surging 52.24% YoY. The average export price was $888.1/ton, showing a slight MoM increase but remaining 7.3% lower YoY, indicating persistent price pressures in the global market.

2. Surge in Imports and Trade Surplus

May imports spiked to 457.99 metric tons, up 40.35% MoM and 182.25% YoY, primarily sourced from South Korea, Taiwan (China), and Japan. However, exports continued to far outpace imports, reinforcing China’s dominant position in the global phthalic anhydride supply chain.

3. Global Demand Driving Exports

Global phthalic anhydride demand is projected to exceed 12 million metric tons in 2025, growing at ~5% annually, driven by traditional applications (plastics, coatings) and emerging uses (electronics, pharmaceuticals). China’s cost-competitive production capacity (over 50% of global supply) and new plant expansions (e.g., Fujian Fuhua, Shandong Hongxin) further strengthen its export edge.

4. Challenges and Outlook

  • Supply Pressure: Domestic capacity additions (post-maintenance restarts + new facilities) and seasonal demand slowdown may exacerbate oversupply risks.
  • Price Challenges: Intensified global competition keeps YoY export prices depressed, with costs (ortho-xylene price declines) and tariff policies warranting close monitoring.
  • Market Diversification: Emerging markets (Middle East, Southeast Asia) are key growth drivers, though India remains the largest single export destination (~40% share).

Conclusion: While near-term exports may remain robust, overcapacity risks loom. Long-term competitiveness hinges on diversifying into high-value products (e.g., bio-based phthalic anhydride).

(~450 words, covering key data and trends concisely)