Price trend
The domestic phenol market fluctuated in July. Data monitored by SunSirs showed that the national market price of phenol was 6,680 RMB/ton on July 1, and 6,667 RMB/ton on July 31. The price in East China fell to as low as 6,500 RMB/ton.
Analysis review
In early July, traders, driven by factors such as high and relatively high average prices, showed limited willingness to sell at lower prices, resulting in generally high quotes. However, end-user factories were reluctant to accept the offer and placed bids at lower levels, with some traders tentatively lowering their bids. Around mid-month, Jiangyin port inventories declined rapidly, boosting trader confidence and leading to higher offers without pressure on shipments. However, downstream demand remained strong, limiting participation from intermediary traders. In the latter half of the month, the market entered a period of fluctuating fluctuations, driven by the interplay of cost and supply-demand pressures. Overall, downstream participation was limited, driven by strong demand, and trading was subdued.
Regarding July plants: Yangzhou Shiyou's 320,000 tons/year phenol-ketone unit shut down for maintenance from June 13th to July 10th; Hengli Petrochemical shut down for maintenance from July 21st to 27th; Guangxi Huayi shut down for maintenance from July 25th to 27th; and Shanghai Xisa's unit briefly shut down for three days on July 28th.
As of July 31st, phenol quotations in major markets nationwide were as follows:
|
Region |
Quotations on July 31 |
Monthly gain/loss |
|
East China region |
6,620 RMB/ton |
50 RMB/ton |
|
Shandong region |
6,700 RMB/ton |
-100 RMB/ton |
|
Yan Shan and its surrounding areas |
6,700 RMB/ton |
-100 RMB/ton |
|
South China region |
6,650 RMB/ton |
0 |
Future outlook:
SunSirs predicts that with the resumption of production at Yangzhou Shiyou and the production of products at Zhenhai Refining and Chemical, domestic supply is expected to increase compared to July, with a projected monthly output of 500,000 tons. Regarding ports, the replenishment of ocean-going vessel cargo contracts is expected to decrease, easing pressure on ports. The impact of crude oil on benzene will continue to be monitored. In the downstream market, phenolic resin is in a relatively off-season, while other industries remain stable. Overall, the phenol market faces a mix of positive and negative factors, with market fluctuations remaining frequent. The price range may be between 6,500 and 6,750 RMB/ton.
If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.
