Price trend

Last week, the domestic phenol market experienced a significant decline. During the week, Sinopec East China lowered its listed price by 300 RMB/ton, settling at 6,000 RMB/ton. According to data monitored by SunSirs, the domestic phenol market price in East China was 6,163 RMB/ton on December 1st, and 5,760 RMB/ton on December 5th, representing a decrease of 6.54%.

Market Analysis

From a supply perspective, port inventories of phenol in Jiangyin were around 10,000 tons at the beginning of the week. While there were some imports and domestic shipments during the week, the impact on the spot market was not significant. Overall, the market supply was ample, and traders were actively selling and continuously lowering prices.

From the demand side, downstream end-users showed limited interest in participating in market inquiries. The main reason for the negative market sentiment this time was the lack of demand, with expectations of prices falling below 6,000 RMB/ton being realized ahead of schedule. Factories significantly lowered their listed prices, causing the market to repeatedly hit new lows for the year. As of December 5, the market was affected by low prices, resulting in insufficient transactions and a further decline in prices.

As of December 5th, the quoted prices for phenol in major markets across China were as follows:

Market Forecast:

Sunsirs expects the phenol market to operate at a low level. Overall, fluctuations in costs had little impact on the phenol market. As of December 5, tight supply and demand were the main factors driving the phenol market to continuously hit new lows for the year. On the supply side, Yangzhou Shiyou may have planned shutdowns next week, and domestic shipments remained generally stable; on the demand side, overall purchasing was based on actual needs, mainly in small orders, and overall downstream demand is unlikely to change significantly.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.