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Phthalic Anhydride prices in Japan, the highest-cost reporting region, rose 2.8% in Q2 2026 to USD 1,490.00/MT from USD 1,450.00/MT in Q1, recovering from softer domestic demand conditions recorded through late 2025. Chinese prices, which had declined steadily through 2025 amid bearish market sentiment, surged 15.8% in Q2 to USD 1,100.00/MT, extending a sharp reversal triggered by geopolitical conflict-driven feedstock cost pressure. Globally, the average rose from USD 1,281.80/MT in Q1 to USD 1,348.80/MT in Q2, a 5.2% gain, following a jump of 7.9% in Q1. For H2 2026, a global average of USD 1,050.00-1,550.00/MT is expected, with regional divergence likely to persist between recovering Asian markets and steadier European and North American pricing.
Phthalic Anhydride is a white crystalline organic chemical compound produced through the catalytic oxidation of ortho-xylene, or historically naphthalene, serving as a critical intermediate in the production of phthalate plasticizers, alkyd resins, and unsaturated polyester resins. Major end-use industries include construction, automotive, marine, transportation, and dyes and pigments manufacturing, with plasticizers historically holding the largest share of downstream demand. Because ortho-xylene is derived from the aromatic petrochemical stream, this market's cost structure tracks crude oil and naphtha costs closely, making it directly exposed to the same geopolitical and energy market disruptions affecting the broader petrochemical complex. Ortho-xylene feedstock costs, plasticizer and resin demand, and regional geopolitical and energy market disruptions are what drive prices in this market.
The outlook for Phthalic Anhydride through H2 2026 points to continued regional divergence, with Asian markets, particularly China, likely to remain volatile following the sharp geopolitical conflict-driven price surge recorded in March 2026. European and North American pricing should stay comparatively more stable, tracking steady ortho-xylene feedstock costs and moderate demand from construction and automotive end-use sectors.
The main upside risk is a further escalation of geopolitical tensions affecting crude oil and ortho-xylene feedstock costs, which could extend the sharp Chinese price surge further. The main downside risk is a resumption of the bearish market sentiment and rising bio-based plasticizer competition that pressured this market through most of 2025, which could resume the earlier price softening.
| Region | 2026 Price Range (USD/MT) | Outlook |
| Global Average | 1,050.00 - 1,550.00 | Regional divergence persists between recovering Asia and steady West |
| Japan | 1,400.00 - 1,600.00 | Domestic demand recovery sustains the highest cost |
| Germany | 1,350.00 - 1,550.00 | Steady construction and coatings demand supports firmness |
| United States | 1,200.00 - 1,400.00 | Recovering demand drives continued gains |
| China | 800.00 - 1,250.00 | Geopolitical conflict-driven volatility persists |
Japanese Phthalic Anhydride prices averaged USD 1,490.00/MT in Q2 2026, the highest of any region tracked here, up 2.8% from USD 1,450.00/MT in Q1, as domestic demand continued recovering from the softer conditions recorded through late 2025.
Why did the price of Phthalic Anhydride change in Q2 2026 in Japan?
Steady demand from downstream plasticizer and resin manufacturers continued supporting this market's recovery, keeping it at the top of the range tracked in this report.
German prices averaged USD 1,450.00/MT in Q2 2026, up 3.6% from USD 1,400.00/MT in Q1, as steady construction and coatings demand continued supporting this market.
Why did the price of Phthalic Anhydride change in Q2 2026 in Germany?
Steady demand from key downstream sectors, particularly plasticizers and coatings, continued supporting firm European pricing.
US prices averaged USD 1,320.00/MT in Q2 2026, up 3.1% from USD 1,280.00/MT in Q1, as recovering demand continued driving gains following the weak conditions recorded in Q4 2025.
Why did the price of Phthalic Anhydride change in Q2 2026 in the United States?
Improving downstream demand from construction and automotive applications continued driving gains following the sharp Q4 2025 weakness tied to elevated inventories and uninterrupted plant operations.
Chinese prices averaged USD 1,100.00/MT in Q2 2026, up 15.8% from USD 950.00/MT in Q1, extending a sharp reversal from the bearish conditions that had characterized this market through most of 2025.
Why did the price of Phthalic Anhydride change in Q2 2026 in China?
Recently, the domestic phthalic anhydride market experienced a round of rapid price increases triggered by geopolitical conflicts, with the sharp March 2026 surge continuing to work through the broader Chinese market into the following quarter.
Japanese prices rose 4.2% in Q1 2026 to USD 1,450.00/MT from USD 1,391.00/MT in Q4 2025, recovering from softer domestic demand.
Why did the price of Phthalic Anhydride change in Q1 2026 in Japan?
The Phthalic Anhydride Price Index had fallen in the prior quarter, reflecting softer domestic demand, before recovering as domestic plants adjusted output and demand conditions improved into Q1 2026.
German prices rose 11.1% in Q1 2026 to USD 1,400.00/MT from USD 1,260.00/MT in Q4 2025, tracking elevated ortho-xylene feedstock costs.
Why did the price of Phthalic Anhydride change in Q1 2026 in Germany?
In Europe, phthalic anhydride prices experienced upward pressure as elevated Middle East-linked energy costs pushed ortho-xylene feedstock costs higher, mirroring the broader global market trend toward tighter feedstock availability.
US prices rose 7.6% in Q1 2026 to USD 1,280.00/MT from USD 1,190.00/MT in Q4 2025, recovering from the sharp Q4 2025 decline.
Why did the price of Phthalic Anhydride change in Q1 2026 in the United States?
The Phthalic Anhydride Price Index had fallen sharply in Q4 2025, reflecting weak downstream demand, with lower ortho-xylene feedstock costs and steady imports lowering upstream cost pressure and a seasonal construction lull reducing offtake, before conditions began improving into Q1 2026.
Chinese prices surged 9.2% in Q1 2026 to USD 950.00/MT from USD 870.00/MT in Q4 2025, as a round of rapid price increases triggered by geopolitical conflicts began working through the domestic market in March.
Why did the price of Phthalic Anhydride change in Q1 2026 in China?
The domestic phthalic anhydride market experienced a round of rapid price increases triggered by geopolitical conflicts, with benchmark pricing rising more than 25 percent compared to the beginning of the month as the broader Iran-Israel conflict pushed crude oil and feedstock costs sharply higher.
Global Phthalic Anhydride prices moved in a mixed pattern through 2025, with Asian markets, particularly China, trending lower amid bearish sentiment and rising bio-based plasticizer competition even as European and Middle Eastern prices firmed, before a sharp geopolitical conflict-driven surge in March 2026 abruptly reversed the Chinese decline and lifted the global average sharply through Q2.
| Quarter | Price (USD/MT) | QoQ Change | Direction |
| Q2 2026 | 1,348.80 | +5.2% | ↑ Rising |
| Q1 2026 | 1,281.80 | +7.9% | ↑ Rising |
| Q4 2025 | 1,187.44 | -4.8% | ↓ Falling |
| Q3 2025 | 1,247.92 | -0.5% | ↓ Falling |
| Q2 2025 | 1,254.80 | - | — Stable |
| Q3 2026 | In Progress | - | — In Progress |
Phthalic Anhydride told a genuinely divided story across 2025. Germany posted a firm annual gain tracking rising ortho-xylene feedstock costs, while the United States, Japan, and China all posted annual declines driven by weak downstream demand, bearish market sentiment, and rising bio-based plasticizer competition, before an abrupt geopolitical conflict-driven reversal upended the Chinese market in early 2026.
Japanese prices declined from about USD 1,500.00/MT in Q1 2025 to USD 1,391.00/MT by Q4, down roughly 7.3%, tracking softer domestic demand through the year.
German prices firmed from about USD 1,150.00/MT in Q1 2025 to USD 1,260.00/MT by Q4, a gain of roughly 9.6%, the only region among the four to post a positive annual figure.
US prices declined from about USD 1,450.00/MT in Q1 2025 to USD 1,190.00/MT by Q4, down roughly 17.9%, the steepest annual decline of the four regions, tied to weak downstream demand and elevated inventories.
Chinese prices declined from about USD 950.00/MT in Q1 2025 to USD 870.00/MT by Q4, down roughly 8.4%, tracking bearish market sentiment and rising bio-based plasticizer competition, before the sharp geopolitical conflict-driven reversal that followed in early 2026.
Expert Market Research: Your Source for Real-Time Phthalic Anhydride Price Intelligence
Expert Market Research tracks Phthalic Anhydride prices continuously across every major producing and consuming region, combining ortho-xylene feedstock cost data, plasticizer and resin demand signals, and geopolitical and energy market disruption trends into a single, regularly updated view of the market. Our team can help your procurement function benchmark current offers, plan purchases around the volatile regional trends covered in this report, and build a defensible view of where this essential plasticizer and resin intermediate is headed next. Reach out to our team for a tailored briefing or a deeper look at any of the regional markets covered here.
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
It serves as a critical intermediate in the production of phthalate plasticizers, alkyd resins, and unsaturated polyester resins, with major end-use industries including construction, automotive, marine, transportation, and dyes and pigments manufacturing.
The Q2 2026 global average was USD 1,348.80/MT, ranging from USD 1,100.00/MT in China to USD 1,490.00/MT in Japan.
The global average fell from USD 1,187.44/MT in Q4 2025 to USD 1,281.80/MT in Q1 2026 and then to USD 1,348.80/MT in Q2, driven largely by a sharp geopolitical conflict-driven reversal in the Chinese market.
The domestic market experienced a round of rapid price increases triggered by geopolitical conflicts, with benchmark pricing rising sharply within the month as the broader Iran-Israel conflict pushed crude oil and ortho-xylene feedstock costs higher.
The global average is expected in the USD 1,050.00-1,550.00/MT range, with regional divergence likely to persist between recovering Asian markets and steadier Western pricing.
China holds the lowest cost among the regions tracked here despite its recent sharp gains, while Japan carries the highest cost given recovering domestic demand.
This report is updated monthly. For real-time pricing intelligence, connect with the Expert Market Research team.
Ortho-xylene feedstock costs, plasticizer and resin demand, and regional geopolitical and energy market disruptions.
China maintains substantial production capacity, with Germany, the United States, and Japan also significant producing and consuming markets tied to their domestic plasticizer and resin industries.
Buyers can monitor ortho-xylene feedstock cost trends and geopolitical developments given their outsized influence on this market, time forward purchases around the quarterly breakdowns in this report, and benchmark supplier quotes against the tracked price ranges given the scale of recent volatility.
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