China's Phenol Market Shows Little Volatility

October 15, news

After the market decline following the holiday period, it’s expected to enter a range-bound consolidation phase this week. According to monitored data, prices for Chinese phenol in the East China market dropped from 6,820 CNY/ton on October 8 to 6,600 CNY/ton on October 12, and further to 6,543 CNY/ton on October 14—a decrease of 4.06% since the holiday.

Currently, the market supply and demand fundamentals have not fluctuated much. Considering the impact of spot supply and higher monthly average prices, traders are not very willing to offer excessive discounts, but there is a lack of supportive factors for maintaining prices. In terms of raw materials, crude oil has fallen significantly after the holiday, pulling down the price of pure benzene again. Major manufacturers have consecutively lowered their listed prices twice, and the arbitrage space between regions is insufficient, leading traders to actively sell at discounts.

Downstream end-user enterprises mostly purchase on demand, with a lukewarm purchasing sentiment and low bid prices. The downstream bisphenol A market has also shown a downward trend in its center of gravity.

As of October 14, the benzene phenol quotations in major markets across China are as follows:

Market fundamentals are expected to remain flat, and given the relatively high monthly average prices, traders are unlikely to offer excessive discounts. As a result, the market is now entering a relatively stable phase, with downstream buyers purchasing only as needed. Overall, China's phenol market is anticipated to trade within a narrow range today, with close attention paid to cost dynamics and underlying supply-and-demand conditions.