China DOP Production Overview in Q2 2025

In April 2025, China's DOP production reached 113,600 tons, marking a significant decline of 19.55% compared to March 2025, yet showing a year-on-year increase of 2.99% from April 2024. During the early part of April, the DOP market faced challenging conditions - prices continued to fall, industry-wide losses intensified, and inventory accumulation was reported among market players. Under the combined pressure of bearish market sentiment and weak fundamentals, the industry experienced a notable concentration of production cuts and shutdowns. However, by mid-to-late April, operating rates in the DOP sector showed a modest recovery.

In May 2025, China's DOP production rose sharply to 128,000 tons, up 12.68% from April, and up 12.38% year-on-year. Throughout May, major DOP producers generally maintained stable operations, with a particularly notable increase in output towards the end of the month. Improved profitability in the latter part of May, coupled with downstream restocking ahead of the Dragon Boat Festival, boosted production enthusiasm among DOP manufacturers. By the end of the month, overall industry operating rates climbed to over 70%, leading to a marked increase in total supply.

In June 2025, China's DOP production fell again to 110,200 tons, a decrease of 13.91% from May, though still representing a year-on-year growth of 5.05%. June saw a wave of maintenance shutdowns among major producers - for example, a major plant in Shandong halted production on June 8 with plans to resume by mid-July; DOP facilities in Jiangsu also experienced phased shutdowns in mid-June; and some producers in Zhejiang conducted maintenance in early June. These factors led to a reduced supply of DOP in the domestic market throughout the month, with both supply and demand declining in tandem.

Overall, China's DOP industry in Q2 2025 grappled with intensified weak demand, resulting in lower capacity utilization compared to Q1. Both external market pressures and subdued domestic demand weighed heavily on the sector, especially in April and June, suppressing production sentiment. A combination of falling prices, squeezed margins, and persistently sluggish demand during the off-season led to a decline in overall supply. However, even as production levels dropped, downstream demand showed little sign of improvement, leaving DOP suppliers facing ongoing sales pressures.

As of mid-July, the industry's average operating rate remained below 50%. Nevertheless, with some maintenance work now completed, production is expected to recover in the coming weeks. Looking ahead, DOP output in Q3 2025 is projected to increase modestly as plant operations gradually ramp up.