This Week's Chinese Phenol Market Shows Major Stability with Minor Fluctuations (Aug 1-8)

August 8th News

At the beginning of the month, the Chinese phenol market was largely stable with minor fluctuations. According to monitored data, in the East China market, the price of phenol in China on August 1st was 6,643 CNY/ton, and on August 8th it was 6,603 CNY/ton, a decrease of 40 CNY/ton or 0.6%. Nationwide, all major markets saw a similar small decline.

This week, the Chinese phenol market was largely stable with minor fluctuations, and the atmosphere was slightly weak. As of August 8, the reference price in the East China market was between 6,590 and 6,620 CNY per ton. During the week, from a cost perspective, the price trend of the raw material benzene was strong, providing some support to the cost side. However, the purchasing intention from the end-users was weak, and traders faced significant pressure to sell. Given that domestic cargo shipments were delayed due to the impact of typhoons, traders had limited room for concessions. Therefore, the Chinese phenol market this week showed a largely stable situation with minor fluctuations, and the trading atmosphere was quiet.

Regarding facilities: Shanghai Xisa restarts, Dalian Hengli increases load, and Zhenhai Refining & Chemical increases supply.

As of August 8, the phenol quotations in major markets across China are as follows:

In terms of costs, pure benzene is expected to perform relatively strongly in the short term, supported by cost factors. Regarding demand, downstream bisphenol A (BPA) demand is expected to increase slightly, while overall demand remains relatively stable. On the supply side, supply volume is expected to increase marginally. Phenol prices are forecast to fluctuate slightly next week, with overall supply and demand remaining basically balanced, and the market price of phenol continuing to remain largely stable with minor fluctuations.