The Phenol market in the USA displayed stability as it transitioned into April 2025, buoyed by healthy supply levels and steady demand from the construction sector. Also, the imposition of tariffs by President Donald Trump has infused an element of uncertainty in the Phenol market. The effects of tariffs were very prominent in the purchasing engagement in the spot market. The result was a shift in buying behaviour, with most buyers currently focused on their purchasing strategy based on a cautious restocking requirement rather than bulk procurements. The cautious nature of their purchasing habits was to hedge against market uncertainty focussing on minimum takeovers. As a result, trading activity remained thin. Moreover, the prices of feedstock Benzene also remained stable for the week, thus keeping manufacturing costs largely unchanged and reinforcing stability in the Phenol market.

Given the fact that Phenol is primarily used as Phenolic resins for making plywood, oriented strand boards, furniture-making, insulation materials, and adhesives, all of which are used extensively in the construction industry. Although data concerning the Construction sector has not been published, but the trend continued to similar as observed in February 2025, with a sustained rise in construction spending. This increase in construction activity is a positive sign for the demand for Phenol, especially with an uptick in the residential sector. The residential sector developed a 1.0% gain in single-family homebuilding as mortgage rates eased, resulting in an improved investment environment in residential construction. While there have been positive indicators, the Phenol market may face downside risk. Tensions also persist over tariff increases on key imported materials like lumber, which will likely raise project costs in the upcoming weeks. The increased cost of construction may require construction market players to tighten their budget, impacting construction activities as a whole. Because Phenol remains a key input in construction projects, the decline in construction activity will likewise affect demand for Phenol as well.

According to ChemAnalyst Pricing Intelligence, the pricing trajectory for Phenol in the USA is expected to remain volatile in the upcoming weeks. With the evolving supply-demand dynamics, ongoing tariff repercussions, it remains to be seen whether these tariffs implemented with the objective of boosting domestic industries turns out to be a favourable factor driving Phenol consumption in the domestic market. In contrast, it is also possible that it may disrupt the already established supply chains, and drag down the construction sector, thus weighing on the demand fundamentals for Phenol.