Weekly Phenol Report 18th December 2020

Weekly Price Trend: 14-12-2020 to 18-12-2020

• The above given graph focuses on the Phenol price trend for the current week.
• If we take a quick look at the above given week, prices remained firm and there has been no change in values for this week.
• Prices were assessed at the level of Rs.76/Kg for bulk quantity. Prices reduced by Rs.7/Kg for this week.

Booking Scenario

INDIA & INTERNATIONAL

• This week domestic phenol market prices were assessed around Rs.76/Kg for bulk quantity. Prices as expected lowered down for this week.\As the surge in values reached its optimum level last week so there was correction in prices.
• CFR India prices for this week were assessed in the range of USD 720-740/MTS for this week.
• Benzene the source for Phenol has increased in this week. FOB Korea values for Benzene were assessed around USD 648/MT for this week. Prices increased by USD 23/MT for this week. CFR China prices were assessed around USD 634/MT for this week.
• Borealis a major Phenol manufacturer has declared force majeure on Phenol/Acetone unit at Porvoo owing power failure. At this point in time it is unclear when the force majeure will be lifted. The Porvoo site includes a 190,000-metric tons/year phenol plant and 118,000-metric tons/year acetone facility. A Borealis source dismissed reports that Borealis had declared force majeure on its 380,000-metric tons/year steam cracker, also in Porvoo. "Our cracker in Porvoo is fine, we only declared force majeure on our phenol and acetone production in Porvoo," the Borealis source said.
• Crude oil prices are on the rise again after a short reversal of fortunes prompted by a huge crude oil inventory build reported by the U.S. Demand from China and India has been on its toes. China has been the main driver of oil prices this year because of its massive refining capacity and growing storage capacity. 
• Both countries are boosting their refining capacity in the meantime. China is already on track to surpass the United States as the world’s biggest oil refiner next year or the year after. Last year, it added some 1 million bpd to existing capacity, and there is another 1.4 million bpd of capacity under construction. 
• India, too is in this running race of boosting it own capacity. In November, Prime Minister Narendra Modi surprised many when he said there were government plans to increase the country’s refining capacity twofold over the next five years. Earlier this year, Modi had said the plan was to double India’s refining capacity over ten years, but strong demand must have made the government reconsider the timeline. Currently, India has a refining capacity of 250 million tons, or a little more than 5 million bpd, based on a conversion factor of 7.33 barrels per metric ton of oil. 

$1 = Rs. 73.55

Import Custom Ex. Rate USD/ INR: 74.45

Export Custom Ex. Rate USD/ INR: 72.76