Phenol Market Moves Marginally and Weakly

Introduction: Recently, the Chinese phenol market saw deadlocked trading and the market was expected to be tepid in the short term. Up to March 16, 2018, negotiation prices for phenol in East China were in the range of RMB 8,850-8,900/mt, down RMB 75/mt from early March.     

Entering 2018, the Chinese phenol market is not ideal, and market prices have showed a downtrend. The phenol prices were weak in the spot market in March, but producers held firm offers. Posted prices from Sinopec East China Marketing were stable at RMB 9,500/mt. Posted prices from Sinopec North China Marketing were stable in the range of RMB 9,200-9,300/mt. But the demand in the spot market was tepid. Dealers sold food at low prices to ease the sales pressure.  

As for the coming phenol market, players pay attention to the fundamentals. From the raw materials aspect, benzene and propylene markets are fluctuating marginally, which won’t support the phenol market. As for the downstream demand, phenolic resin producers purchase phenol on a need-to basis and the overall trading is not active. BPA units are running stably and the demand for phenol will be stable. As for the cyclohexanone market, the demand for phenol is limited.       

On the whole, the phenol market is predicted to move marginally in the short term. Though the fundamentals are slightly weak, phenol producers hold stable offers. It is predicted that the phenol prices in East China will fluctuate in the range of RMB 8,800-9,000/mt.