Published on May 17, 2016

Week buying sentiments has sharply declined the prices of Phenol in domestic market. Despite the good amount of material availability, Indian importers subdued outlook in rupee denominated market has plunged the phenol prices.

A large amount of material has been booked for loading for the month of May which will boost the supply in the coming month. As per the market players the wide spread between feedstock Benzene and phenol prices is means that CFR India prices will go down in near term. Presently buyers have adopted wait and observe stances for new prices level before engaging in price negotiations.

In the month of April total imported quantity were around 18000mt, However in the month of May for the first 15days Phenol inventories at Kandla were around15,000MT. In addition about 14,000-15,000MT of North East Asian phenol have been booked for lifting in May, while 7,000MT of South East Asian phenol have been sold for loading in May and  6,000-7,000MT of US material are estimated to come India by end of May and early june.

Presently CFR India phenol prices were evaluated in the range of USD 1010-1050mt. While erratic buying indications were heard  in the range of USD950-1,000mt.

In plant news, Kumho P&B is planning to resume its new no 4 phenol plant, which is having the production capacity of around 300000 mt/yr in South Korea.

Mitsui Phenols Singapore has started its phenol/acetone output to 80% capacity from 60% rate in South East Asia.

Taiwan Prosperity Chemical Corp is anticipated to lift up its phenol/acetone output from 50%capacity from June.