Phenol Weekly Report 25 Jan 2019

Weekly Price Trend: 21-01-2019 to 25-01-2019

• 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 it can be observed that this week domestic prices increased heavily for this week.
• By end of the week prices were assessed at the level of Rs. 92/Kg for bulk quantity. 

Booking Scenario

INDIA & INTERNATIONAL

• This week domestic phenol market prices were assessed around Rs.92/Kg for bulk quantity. Prices increased by Rs.5/Kg for this week.
• CFR India prices for this week were assessed in the range of USD 1340-13600/MTS, increased by USD 40/MTS for this week.
• Benzene FOB Korea prices remained firm for this week. FOB Korea values were assessed around USD 560/MT. On other side CFR China prices were assessed around USD 580/MT for this week. 
• Oil prices remained vulnerable throughout this week. With concerns over surging in crude production lacklustre in demand crude prices declined on Thursday. The scenario was completely different on Friday.
• Crude has been on toes as US/China continues to worry the world and on other side there has been heavy production of crude from US.
• These global worries are having an adverse impact on the world economic growth. On Thursday, closing crude values have increased. WTI on NYME closed at $53.13/bbl. Prices have increased by $0.51/bbl in compared to last closing prices. While Brent on Inter Continental Exchange decreased by $0.05/bbl in compare to last closing price and was assessed around $61.09/bbl.
• Chinese government has not released the preliminary findings for anti dumping duty against imports of Phenol from five  countries. In March 2018, Chinese government initiated probe on Anti dumping duty investigation on Phenol imports from five origins which include US, EU, South Korea, Japan and Thailand. The initial probe lasts for six months but it has been delayed by one year now. “This is the longest ADD investigation in quite a while. Under normal circumstances, the final results would have been announced in one year,
• Chinese authorities may be opting to wait until after the 90-day trade war truce with the US lapses on 1 March, before taking any further action.
• Chinese buyers had lost interest in US-origin phenol following imposition of a 10% import duty in late August 2018. US was a major exporter of the material to China, from which the northeast Asian country sourced about a third of its phenol imports in 2016.
• US-origin phenol bound for China was imposed with a 10% import duty in late August last year, when the second volley of shots were fired in the trade war between the two economic giants.  

PLANT NEWS

Phenol/Acetone unit to be restarted by TPCC

• Taiwan Petrochemical Corp (TPCC) will restart its Phenol/Acetone unit next week. Earlier the unit was scheduled to restart last week after brief maintenance. But fire broke out and the restart has been delayed now.
• Unit is based at Linyuan in Kaohsiung province of Taiwan and has the production capacity of 180,000 tonne/year of Phenol and 110,000 tonne/year of Acetone. 

$1 = Rs. 71.16

Import Custom Ex. Rate USD/ INR: 72.10

Export Custom Ex. Rate USD/ INR: 70.40