Phenol prices and market news

Ahead of the Lunar New Year holidays in end-January, Chinese demand for phenol remained under pressure amid a falling domestic market, although tight supply in Northeast Asia as well as a surging feedstock market contributed to a week-on-week rise of $10/mt in the CFR China marker to $860/mt Tuesday. Domestic China prices were down around Yuan 150/mt week on week at Yuan 7,000-7,100/mt, said sources, with a trader adding that he would not be looking for any spot cargoes until after the holidays given end-user demand was unlikely to pick up before then. However, feedstock FOB Korea benzene prices surged $102/mt over the same period to $926/mt, accounting for a rise in the CFR China phenol marker, even as Asian producers said they were operating at a loss. Southeast Asian producer Mitsui Phenols Singapore has cut its operating rate to 80% of its nameplate capacity, lowering the rate on January 1, on the back of poor margins, a source close to the company said. The company also has no spot cargoes on offer at the moment for February, the source added. Providing some relief in Northeast Asia, Taiwanese producer TPCC will restart its Kaohsiung plant from maintenance next week, a source close to the company said. The standard maintenance began in December. Domestic prices in India were higher at Rupees 74($1.04)/kg, according to sources, with selling ideas for CFR India cargoes heard at up to $1,100/mt. Trades concluded over the week included a January Thai cargo sold at $970/mt CFR India, as well as several deals done for a large shipment of Asia-origin phenol with several traders, the last deal concluded at $1,000/mt CFR India, sources confirmed. The CFR India marker was assessed at $1,000/mt, up $60/mt from the last assessment.


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