Phenol Weekly Report 19 April 2019

Weekly Price Trend: 15-04-2019 to 19-04-2019

• 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 remained highly vulnerable and has been turbulent for this week.
• By end of the week prices were assessed at the level of Rs. 82/Kg for bulk quantity, reduced by Rs.4/Kg for bulk quantity.

Booking Scenario

INDIA & INTERNATIONAL 

• This week domestic phenol market prices were assessed around Rs.86/Kg for bulk quantity. Prices remained unchanged for this week for bulk quantity.
• CFR India prices for this week were assessed in the range of USD 1070-1090/MTS, with no change in compare to last week’s closing values.
• Weakening of values has been attributed to poor sentiment across Asia. Reduced demand from downstream segment in china has also affected the production of Phenol in Asia.
• Benzene the major source for Phenol had decline abruptly for this week. Benzene FOB Korea prices were assessed at the level of USD 636/MT, again recovered by USD 6/MTS from last week crash in the prices.
• On other side CFR China prices were assessed at the level of USD 628/MT, increased by USD 5/MTS for this week.
• The election period going in the country has been major factor affecting the sentiments for Indian economy. Traders are in mood to know first about the government to take lead and then make any fresh position in the market.
• Crude has been on upward trajectory since past few weeks, but with slowdown in buying has led to correction in values.
• The renewed concerns over rising US inventory and production as well as concerns over a global economic slowdown helped put a lid on the prices.
• On the demand front, China’s state-owned energy giant Sinopec had resumed buying US oil, which was bullish for the market. The EIA reported that US crude exports to China had dried up from mid-2018 through recent weeks, after having averaged over 300,000 bpd in first half of last year. 

PLANT NEWS

Phenol/Acetone unit shut down by Sinopec Yanshan

• Sinopec Yanshan Company Beijing has shut down its Phenol/acetone unit for maintenance turnaround. The unit will be shut down by end of this week and is likely to remain off-stream for around one week. Unit is based at Beijing in China and has the production capacity of Phenol around 1,10,00 tonnes/year and Acetone around 70,000 tonnes/year. 

$1 = Rs. 69.35

Import Custom Ex. Rate USD/ INR: 70.40

Export Custom Ex. Rate USD/ INR: 68.70