Phenol Weekly Report 29 Sep 2018

Weekly Price Trend: 24-09-2018 to 28-09-2018

• 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 increased and at the end of the week prices were assessed at the level of Rs. 117/Kg for bulk quantity.

Booking Scenario

INDIA & INTERNATIONAL

• This week domestic phenol market prices were assessed around Rs.117/Kg for bulk quantity. Prices have increased little.
• CFR India prices for this week were assessed in the range of USD 1410-1430/MTS, prices have increased in compared to last assessed values.
• This week in domestic market Phenol prices have escalated and reached to its higher level from Rs 112/kg to Rs 125/kg and domestic producer Deepak fertilizer has shut its phenol production resulted shortage of material.
• This week domestic and International prices of Phenol have increased.
• Sinopec raises east China phenol offer by CNY200/tone.
• China’s Sinopec Shanghia Gaoqiao plans phenol/acetone plant maintenance.
• Sinopec SABIC Tianjin has restarted its Phenol unit after brief maintenance period. Earlier the unit was shut down on 4th of September for around three weeks. Unit is based in China and has the production capacity of 2,20,000 tonnes/year.
• As per recent report, Presently Phenol market is moving with soft velocity no major deals and discussion has been heard.
• Import prices of phenol from China have increased due to tight supply on account of shutdowns at major domestic plant.CFR China Phenol prices were evaluated in the range of USD 1400-1450/MT.As per report, from the Middle East, the US and EU – accounted for around 40% of China’s total phenol imports; while Asia-origin cargoes from South Korea, Japan and Thailand accounted for 50% of the total.
• As per market source, China’s demand for phenol is likely to increase and underpin firm prices in the near term, due to expansion of downstream facilities. These include China Petrochemical Development Corp’s (CPDC) 150,000 tonne/year Cyclohexanone unit, which is expected to start up toward year end.
• Other downstream sectors may not be able to absorb the high prices, and may cut phenol consumption to reduce operating rates. Some market players have said that for upcoming market outlook market players have to observe market trends after the Golden week in October
• According to Petrochemical giant Total, the supply disruptions and the delay time associated with OPEC’s ability to increase production could pull up the price to $100 per barrel. This in turn will hamper the economy and the oil industry.
• Disruptions in supply coming from Iran, Venezuela, and Libya give strong support to oil prices and they may head into triple-digit territory. 
• On the other hand, although OPEC has assured to boost production, but output hasn’t increased so much. Saudi Arabia has capacity of 11 million bpd, but boosting production from current levels would need time, because they have to mobilize rigs.
• This week benzene prices have decreased.
• East China benzene inventories drop to 158,000 tonnes.
• As per report, Benzene prices will remain bearish due to an increase in supply for October and November.
• FOB Korea and CFR China prices of Benzene were evaluated at USD 860/mt and USD 865/mt respectively.

 $1 = Rs. 72.48
 Import Custom Ex. Rate USD/ INR: 73.65
 Export Custom Ex. Rate USD/ INR: 71.95