In the case of the widening of the bid-ask spread, the import negotiations in the Asian plasticizer market have come to a deadlock. With raw material prices still high, plasticizer sellers have been scrambling to raise prices to protect their margins. And with prices in China falling, buyers are reluctant to commit. Import talks will heat up ahead of the traditional peak demand season at the beginning of the fourth quarter, so market players are optimistic that overall sentiment in the Asian plasticizer market could recover in September.

"Plasticizer demand is also expected to increase in early October," a seller said. Going into September, the market is optimistic about the negotiations and demand will increase. When prices start to go up, everyone rushes to buy."

In the last quarter, demand for most plasticizers, including DINP and DOP, has generally weakened as most economies around the world have been slow to recover from the difficulties of the pandemic.

The only exception is a surge in demand for dioctyl terephthalate (DOTP), which is widely used in the production of medical gloves, since the second quarter. The median Price of the Asian DOTP rose from a trough of $765 a tonne in April (CFR, China) to $960 in July. From July to August, the median price of DOTP has stabilized and is currently fluctuating between US $945 - us $960 per ton. Demand for DOTP has been stronger than other plasticizers, so some manufacturers have switched to producing DOTP, and domestic DOTP supply in China has increased. With import prices relatively high, some buyers are turning to the domestic market for their goods.