SunSirs: The Domestic Phenol Market Was Steadily Rising

Price trend

Since the domestic phenol market rose in July, the market had been fluctuating at high levels in August and remained at a high level in September. According to the market analysis system of SunSirs, as of September 5th, the national market was 8,582.5 RMB/ton, which had accumulated an increase of 30.14% compared to early July in the domestic phenol market.

Analysis review

The factory raised the listing price in a centralized manner. Sinopec's phenol market in East China had increased by 100 RMB/ton to 8,500 RMB/ton, while Sinopec's phenol price in North China ha,increased by 100 RMB/ton to 8,500 RMB/ton. After multiple increases in factory prices, there was little spot pressure on the market, and traders were reluctant to sell and offered higher prices.

The cost support was strong, and the raw material market was rising. Pure benzene was negotiated at 8,000-8,050 RMB/ton, and downstream styrene profits were being restored, and the factory procurement increased in the market. With the rapid rise of pure benzene to a high level in recent times, cost support had increased, and factory cost had increased, and actively raised prices to be in line with market prices. The terminal was cautious in chasing up high prices, mainly just on demand, and had limited trading volume.

Market outlook

From the perspective of SunSirs, the raw materials sector remained strong in September. Although domestic units Wanhua Chemical and Changchun Chemical had maintenance plans, downstream configuration units were also undergoing maintenance, which had little impact on market supply. Downstream phenolic resin is expected to weaken during the high temperature off-season, and demand may improve. It is expected that the market will remain strong in September and operate at a high level in the short term, with negotiations ranging from 8,550 to 8,700 RMB/ton.

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