Phenol Prices in India

Phenol prices on downtrend in India

Phenol prices went down Rs 3/kg to Rs 92-93/kg week on week at Kandla port on high inventory level and slow demand in the domestic market.
Booking level of phenol went down $30/mt to $1230-1240/mt week on week.
Prices expected more soften in coming days on bearish demand in major trading hubs of India.

International Market Updates:

CFR China phenol was assessed down $145/mt on the week at $1,175/mt Friday, above buy indications heard at below $1,000/mt, and at tradeable indications heard at $1,150-1,175/mt CFR China. End-users hailed the price drop as “overdue”, citing earlier price gains as having happened too quickly, and at too large a magnitude. Producers and end-users alike said Friday that prices of phenol is expected to continue falling moving forward, but market expectations differed on the impact of restocking activity for the Lunar New Year. A producer said Friday that CFR China prices would likely rebound closer to the festive season, while end-users said that prices would may stabilize below $1,000/mt CFR China. Despite the plunge in phenol, falls in feedstock benzene since October have left prices at a two-year low earlier this week. Market sources said that the price spread between benzene and phenol were still too high, and with benzene market long, it was likely that phenol prices would fall. Weakness in the downstream bisphenol-A has resulted in lower operating rates at BPA production plants, thereby affecting demand for phenol. Bisphenol-A is an intermediate material in the production of polycarbonate, which was heard at levels of $1,800-1,900/mt CFR China. “The price spread between polycarbonate and phenol is just $600-700/mt,” an end-user said Friday, adding that the narrow price spreads made it difficult for production plants to breakeven. CFR India phenol was assessed down $100/mt on the week at $1,240/mt, where a deal was heard concluded.

Domestic Phenol Prices went down week on week

phenol price updates

Phenol prices showed continues downtrend in the Indian market and down Rs 2/kg from day to day to Rs 120/kg at Ex-Kandla. Phenol prices went on low trend due to poor demand in the domestic market which downward International prices.

“Prices also went down due to piling inventory at major ports of India.”- source.

Current ports prices noticed between Rs 120-121/kg  Booking price assessed between $1420-1425/mt CFR India down $10/mt.

Indian major producers have declined their prices as follows:

  • HOC – Rs 126/kg down by Rs 3/kg as on 15/11/2018
  • Deepak Phenolics- Rs 124/kg down Rs 8/kg as on 30th Oct’18
  • Herdilia- Rs 130/kg down Rs 10/kg as on 29th Oct’18.

International updates:

Sentiment in the phenol market turned bearish in the week to Thursday as feedstock benzene and propylene prices were weakening. Moreover, downstream markets such as polycarbonate and bisphenol-A also saw lukewarm buying interest, “BPA is about $1,300/mt now and if you subtract $300/mt for production costs, phenol prices should be around $1,000/mt CFR Northeast Asia,” a market source said.

CFR China phenol was assessed lower by $50/mt week on week at $1,400/mt, reflecting tradable indications heard at this level. Meanwhile, CFR Southeast Asia prices fell $20/mt to $1,350/mt, amid price declines heard in the other market. In India, tradable indications were heard at $1,500/mt CFR India, though buying interest was thin at this price. The CFR India market was assessed lower by $10/mt at $1,420/mt, in line with general price declines in the adjacent markets.