China's Phenol Market in July Exhibited Fluctuations, Market May Continue in August

July 31 News

In July, the Chinese phenol market fluctuated within a range. According to monitored data, from a national perspective, on July 1st, the price of phenol in China was 6,680 CNY/ton, and on July 31st, the price of phenol in China was 6,667 CNY/ton, with the lowest drop in the East China market reaching 6,500 CNY/ton.

Trend chart of phenol market in major regions across China

East China Phenol Market Trend Chart

In the first ten days of the month, considering the high average price and its impact, traders were reluctant to sell at low prices, resulting in generally higher quotes. However, end-user factories found it difficult to accept these prices and offered lower bids, with some traders tentatively lowering their offers. Around the middle of the month, as the port inventory in Jiangyin declined rapidly, trader confidence improved, and offers rose without pressure to sell. Nevertheless, downstream demand remained driven by necessity, and the participation of intermediary traders was limited. In the latter part of the month, under the intertwining pressures of costs and supply and demand, the market experienced a fluctuating trend of ups and downs. Overall, downstream participation was limited, with only necessary demand being met, and trading activity was light.

In July, regarding the facilities: Yangzhou Shiyi's 320,000 tons/year phenol and acetone facility was shut down for maintenance from June 13 to July 10; Hengli Petrochemical was shut down for maintenance from July 21 to 27; Guangxi Huayi was shut down for maintenance from July 25 to 27; Shanghai Cisa's facility was briefly shut down on July 28 for 3 days of maintenance.

As of July 31, the phenol quotations in major markets across China are as follows:

It is expected that the supply side in China will increase compared to July, as Yangzhou Shiyou resumes operations and Zhenhai Refining & Chemical begins producing products. Monthly output is forecasted at 500,000 tons. Regarding ports, the volume of contracted overseas shipments is expected to decrease, alleviating pressure on port inventories. Continued attention should be paid to the impact of crude oil on pure benzene prices. Downstream, phenolic resins are currently in a relatively slow season, while other industries remain stable. Overall, the phenol market presents a mix of positive and negative factors, leading to frequent price fluctuations, with potential price ranges between 6,500-6,750 CNY/ton.