Chinese Phenol Market Moved Down This Week (May 11-17, 2018)
Market Review: The Chinese IPA market was weak this week. Reference prices were in the range of RMB 6,800-6,850/mt, down RMB 125/mt or 1.8% W-O-W. The average price this week was RMB 6,845/mt, down RMB 115/mt or 1.7% W-O-W. Units in Kellin Chemicals and Haike Chemical stopped, and Shandong Dadi Supu Chemical had no restart plan. But the overall supply was still abundant.
The terminal demand was sluggish. The operating rate of downstream producers was limited and players showed weak buying interest, which couldn’t support the IPA market. Part holders tried to stimulate trading to sell at a loss.
In South China, the supply was relatively enough. Up to June 14, the closing prices of IPA in Dongguan were in the range of RMB 6,950-7,000/mt. Low-priced goods saw a slight increase of RMB 50/mt. Downstream players showed weak purchasing interest, and negotiation was limited.
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