Published on October 25, 2016

Phenol prices have declined in India on account of supply glut. Presently in Indian market material is available in good amount but demand sentiments have been weaker.

On account of upcoming Diwali festival suppliers also have plunged the prices as all the players want to shut the deals before the market close for the festivities.

Imported quantity of phenol in the month of September was around 22023mt, while material availability at Kandla port till 20th October were around 35,000-36,000mt, as per market source.
Domestic market prices of phenol sharply have plunged, recently phenol prices were assessed in the range of Rs 67-68/kg from Rs 79-80/kg.

CFR India prices were assessed in the range of USD 910-930/mt in previous four month prices have declined around 6-7%, as per report.

Near term demand outlook will be scrawny as demand sentiment from end users before and after the festival will be calm.

Some market players have said that in near term outlook it is anticipated that the phenol prices will go down further into negative province due to the stockpiles and an anticipated gain in onward supply.

A production concern at Mitsubishi Chemical in September and Shell’s second force majeure for the year, had prevented an excess of phenol supply from building in South Korea and Taiwan in October. However, the restart of operations at most phenol plants will again make the Asian phenol market oversupplied.

It is anticipated that Mitsui Phenols Singapore to restore its output in early November and the shell’s cracker will resume its operation at the end if October ,said by source.