This Week, China's Phenol Market Rises and Then Falls

November 21, news

This week, China's phenol market shifted from a narrow upward trend to weakness. Sinopec’s East China listed price remained at 6,300 CNY/ton. According to monitored data, the Chinese phenol market price in East China was 6,295 CNY/ton on November 1, rising slightly to 6,307 CNY/ton by November 21—a price decrease of 0.2%.

This week, Fuyu Petrochemical's phenol-ketone facility utilization rate has been gradually increasing, as Zhejiang Petrochemical’s Phase I unit resumed operations and ramped up production. On the supply side, Jiangyin port inventory dropped to 9,500 tons early in the week, with limited replenishment from domestic shipping cargoes. As a result, market prices were supported by tight supply conditions during the first half of the week, prompting price hikes. However, on Tuesday, major producers in Shandong raised their listed prices.

From the demand perspective, participation remained limited, with downstream buyers showing subdued interest in placing bids and adopting a cautious approach to chasing higher prices. Meanwhile, downstream demand for bisphenol A continued to be driven by essential purchasing needs, while other downstream sectors saw little change.

As a result, market sentiment has once again weakened, weighed down by sluggish demand.

As of November 21, here's the current price quote for phenol across China's major markets:

The phenol market is expected to experience narrow fluctuations next week. Currently, the cost of pure benzene remains relatively strong, which could temporarily push phenol prices slightly higher. Additionally, as the end of the month approaches, supply and shipping pressures are unlikely to intensify, reducing sellers' willingness to offer significant discounts. However, given the persistently sluggish buyer demand, a substantial price increase remains unlikely. Overall, the phenol market is anticipated to adjust within a narrow trading range next week.