In April, the Chinese phenol market continued to decline

April 29 News

In April 2026, the Chinese phenol market continued to decline, with the overall trend briefly rising before quickly falling back, and the price level continuously dropping. The supply-demand contradiction and external factors dominated this downward trend.

April phenol prices generally showed a process of slight increase followed by continuous decline. At the beginning of the month, influenced by the geopolitical event of the attack on Saudi Arabia and the support of the "Golden March, Silver April" peak season, the first week still maintained an upward trend, with prices ranging from 9300 to 9700 CNY/ton, and major companies simultaneously raised their factory prices. On April 8th, the prices of crude oil and upstream raw materials such as pure benzene and propylene fell sharply, leading to a downward adjustment in phenol prices; the single-day price decrease on April 8th reached 2.24%, and by April 10th, the price had decreased by 2.14% compared to the beginning of the month. From mid-month to the end of the month, there was a general decline in the core regions of East China, Shandong, and South China. By the end of the month, the mainstream price in China remained in the range of 8800 to 9200 CNY/ton, showing a significant decrease compared to the high point at the beginning of the month.

(1) Cost-side support collapses

After reaching a high at the beginning of the month, international crude oil prices plummeted sharply, dragging down the prices of core raw materials such as pure benzene and propylene. The price of pure benzene fell by more than 7% in a single day, and the cost support for phenol completely collapsed, highlighting significant downward pressure.

(2) Weak demand in China

Although downstream industries such as bisphenol A and phenolic resins still have rigid demand, the high price of phenol has sharply increased cost pressures for downstream companies. As a result, enterprises have shifted to replenishing inventories only as needed, speculative demand has disappeared, and the transmission of supply chain effects has been hampered, creating a negative feedback loop.

(3) The supply side remains at a high level.

In April, China's phenol and acetone capacity utilization rate remained at a high level of 86.0%-86.5%. Although some overseas companies reduced their loads, the impact on the Chinese market was limited, and stable supply increased circulation pressure.

From a short-term perspective, there is limited support for crude oil and raw material prices, and downstream demand is unlikely to recover quickly. The phenol market in China will continue to experience weak fluctuations. In the long term, there are opportunities for export growth and increased high-end demand, but in the short term, the imbalance between supply and demand and weak costs will remain the dominant factors. It is expected that the market in May will continue to be weak, and attention should be paid to changes in crude oil, demand, and overseas supply.