OfBusiness Chemicals Dailies

28th April’23

Price

• Traders in the domestic market have reduced prices of Hydrated Phenol (H.Phenol) by Rs.2.5 /kg to Rs.96.50 Ex Kandla due to weak buying interest.
• Domestic manufacturer HOCL has also decreased its H.Phenol price by Rs.2 /kg to Rs.110 /kg++ Ex Kochi (excluding territory discounts, cash discounts, and volume discounts). Meanwhile, other manufacturers’ Deepak Phenolics offer Rs.100 /kg ++ Ex Dahej.

Demand and Supply

• The supply of H.Phenol in the domestic market remains thick, with huge inventories piled up at domestic manufacturers and importers at ports. Unfortunately, the demand from resin manufacturers is still weak due to poor downstream demand.
• The primary consumer, the lamination industry, has seen almost flat demand, and seasonal demand has yet to increase. However, demand from other downstream industries, such as adhesives and paint, will likely grow from May.

News

• In the international market, feedstock FOB Korea Benzene prices fell by 10$ to 950 $/Mt.
• FOB Korea Propylene prices remained stable at 920 $/Mt. Asian benchmark CFR China Phenol prices were at 910 $/Mt.

OFB’s Opinion

• It is predicted that H.Phenol prices will remain mixed for this week due to weak downstream demand and thick supplies. However, seasonal demand from adhesives and paints could support Phenol prices from weak to stable.