Promising future for DOTP

Only 5 years ago the European market for DOTP was estimated at a moderate 10kt. Since then a lot happened in the European plasticizer market and the volume did grow a tenfold at least.. The continious pressure on phthalates did move more and more customers to switch to (ortho)phthalate free plasticizers. At the beginning only those customers on the forefront of change did move to DOTP in order to be able offer (ortho)phthalate free products. More customers did follow but interesting enough even more suppliers did. The last 2 years one could easily state that the supply of DOTP was clearly bigger than the demand. Also structural low demand in Asia did motivate Asian suppliers to ship their product to EU in order to profit from the growing phthalate free market in EU. This over-supply did result in fierce competition which in turn did lead to DOTP becoming the most cost effective plasticizer available. And this in turn did trigger more growth…
The last few months the market became more balanced and a lot of customers learned that relying on imports alone can be a dangerous strategy. Yes, you can buy (ortho) phthalate free for a low price but if most of the supply is coming from outside of Europe it is really only a matter of time before supply issues occur.
In order to support the continious growth of DOTP it is therefore needed that in Europe the local capacity has to be increased significantly.
This is exactly what OXEA announced with its 50kt plant coming online in Q4 2015. Besides OXEA more EU suppliers are expected to increase capacity which in the end will ensure DOTP to remain to be very competitive but also to be more reliable from an availability point of view.

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