SunSirs: The Domestic Phenol Market Rose Broadly

Price trend

The domestic phenol market had shown a broad upward trend, supply was tight, cost supported, and the average prices were high. Factories were actively raising prices. According to the analysis system of SunSirs, the national market price was 9,275 RMB/ton on September 11th, a daily increase of 11.32%.

Analysis review

The factory had raised the listing price in a centralized manner. Among them, Sinopec's East China phenol quotation was increased by 400 RMB/ton, implementing a price of 9,200 RMB/ton, while Sinopec's North China phenol quotation was increased by 400 RMB/ton, implementing a price of 9,200 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 8,500-8,650 RMB/ton, and downstream styrene profits had been restored, leading to an increase in factory procurement in the market. With the rapid rise of pure benzene to a high level in recent times, cost support had increased, factory cost had increased, and actively raised prices in line with market prices. The terminal was cautious in chasing up, mainly on demand, and trading volume was limited.

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 weakened during the high temperature off-season, and demand might improve. It is expected that the market will remain strong in September and operate at a high level in the short term, with discussions ranging from 9,250 to 9,350 RMB/ton.

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