Phenol Weekly Report 15 Sep 2018

Weekly Price Trend: 10-09-2018 to 14-09-2018

• The above given graph focuses on the Phenol price trend for the current week.
• If we take a quick look at the above given weekly price trend it can be observed that this week domestic market prices of Phenol have fluctuated sharply and at the end of the week prices were assessed at the level of Rs. 113/Kg for bulk quantity.

Booking Scenario

INDIA & INTERNATIONAL

• This week domestic phenol market prices were assessed around Rs.113/Kg for bulk quantity. Prices have increased little.
• CFR India prices for this week were assessed in the range of USD 1380-1400/MTS, prices have increased in compared to last assessed values.
• This week domestic and International prices of Phenol prices have increased.
• Phenol prices escalated at SE Asia from $1290/MT to $1295/MT(CFR), in China from $1395/MT to $1410/MT(CFR), As per source.
• China based Huizhou Zhongxin has restarted its Phenol/Acetone unit after brief maintenance. Earlier the unit was shut down on 3rd August for annual maintenance. Unit is based at Huizhou in China and has the manufacturing capacity of Phenol  18.25 mt/year.
• China based Sinopec Mitsui Chemicals has restarted its Phenol/Acetone unit after brief maintenance. The unit was shut down for annual maintenance schedule in the month of August. Unit is based at Shnaghai in China and has the manufacturing capacity of Phenol around 2,50,000 mt/year and Acetone around 1,50,000 mt/year.
• Oil prices crossed the levels of USD80 by mid of the week, later it fell by more than 2% on Thursday. This hike was the highest in last four months. The international Energy Agency has already warned that the oil market is tightening at the moment and world oil demand would soon reach 100 million barrels per day (bpd) in the next three months, global economic risks were mounting.
• U.S. companies in China are being hurt by tariffs in the growing trade war between Washington and Beijing, according to a survey, prompting U.S. business lobbies to urge President Donald Trump's administration to reconsider its approach.
• The White House has invited Chinese officials to restart trade talks just as it prepares to escalate a trade war with China with tariffs on $200 billion worth of Chinese goods.
• The other major factor is the loss of Iranian oil to the market as refiners are cutting or halting purchase ahead of U.S. sanctions in November is also raising concerns about supply.
• All these factor has put an rigorous pressure on petrochemical industry and has led to hike in the prices of crucial petrochemical products.
• The ongoing trade war between the US and China, has been dampening sentiment in the Asian benzene market. There is no clear resolution expected in the near term for the trade spat between the world’s two biggest economies.
• East China benzene inventories rise to 167,900 tonnes.
• This week benzene prices have decreased.
• FOB Korea and CFR China prices of Benzene were evaluated at USD 850/mt and USD 855/mt respectively.

$1 = Rs. 71.84
 Import Custom Ex. Rate USD/ INR: 72.55
 Export Custom Ex. Rate USD/ INR: 70.85