For the Quarter Ending September 2024
North America
The North American Phenol market experienced a decline in prices during the third quarter of 2024, with the United States witnessing the most significant changes. Several factors contributed to this downward trend.
Insufficient demand from downstream industries, including construction and automotive, played a crucial role in the price decline. This muted consumption led to an oversupply of finished Phenol products, further pushing prices down.
The energy sector also had an impact on pricing, as falling crude oil prices influenced production costs. Reduced manufacturing activity and a cautious approach from buyers amidst uncertain demand outlooks further challenged the market.Overall, the combination of weak demand, oversupply, and factors related to the energy sector contributed to the decline in Phenol prices in North America during the third quarter of 2024.
In the USA specifically, Phenol prices exhibited a decreasing trend throughout the quarter. Comparing the previous quarter in 2024, prices dropped by 2%. Notably, there was a significant -3% price difference between the first and second half of the quarter. The quarter-ending price for Phenol FOB Louisiana in the USA settled at USD 1080/MT, reflecting the prevailing decreasing pricing environment.
APAC
The Phenol market in the Asia-Pacific (APAC) region witnessed a gradual decline in prices during the third quarter of 2024. Several factors contributed to this downward trend. Weak demand from downstream industries, particularly Bisphenol A, played a significant role in the price decrease. Coupled with steady supplies of Phenol, this imbalance between supply and demand led to a cautious and stable pricing environment. The availability of sufficient Benzene to meet production needs further contributed to the decline in prices. As demand from downstream industries remained subdued, the surplus supply of Phenol created downward pressure on the market. However, Japan stood out with the most significant price changes during this period. Despite a slight 2% increase from the previous quarter in 2024, the second half of the quarter recorded a 3% decrease, indicating a fluctuating market. The latest quarter-ending price for Phenol FOB-Osaka in Japan settled at USD 900/MT, reflecting the overall decreasing sentiment in pricing. The quarter was marked by a negative pricing environment, with market conditions leaning towards stability despite minor fluctuations.
Europe
Throughout Q3 2024, the Phenol market in Europe experienced a consistent decline in prices, driven by several key factors. Weak demand from downstream industries, particularly the construction and automotive sectors, played a significant role in the downward pricing trend. The ample availability of finished Phenol stock further contributed to the price stability. The resumption of production in the U.S. Gulf of Mexico post-Hurricane Francine has led to an increase in the supply of crude oil, which has put downward pressure on crude oil prices. Lower crude oil prices have led to lower Phenol prices. Additionally, an increase in the supply of benzene has led to lower Phenol prices. The overall trend in the market indicated a bearish sentiment, with supply being moderate and demand remaining low to moderate. In the Netherlands specifically, Phenol prices saw the most significant changes in the region. With a -10% change from the previous quarter in 2024, the market experienced a notable decline. The -13% change between the first and second half of the quarter further emphasized the downward trajectory. The quarter-ending price of Phenol FD Rotterdam in the Netherlands was settled at USD 1225/MT, reflecting the prevailing negative sentiment in the market.
For the Quarter Ending June 2024
North America
In Q2 2024, the Phenol market in the North America region experienced a notable uptrend, driven by several significant factors. The primary catalyst for the price increase was a surge in manufacturing costs, influenced by bullish crude oil prices. The Organization of the Petroleum Exporting Countries and its allies (OPEC+) maintained a robust growth outlook for global oil demand, further elevating crude prices. Anticipated higher fuel demand during the summer months also contributed to this trend. Additionally, inquiries from downstream construction industries improved, albeit gradually, supporting the upward shift in Phenol prices.
Focusing on the USA, the market saw the most substantial price changes. Overall trends indicated a stable yet increasing sentiment, influenced by seasonal demand fluctuations and a complex interplay of supply chain dynamics. Furthermore, escalating attacks in the Red Sea have forced shipping companies to reroute vessels around Africa's Cape of Good Hope, increasing voyage times and freight rates.
However, the manufacturing sector faced pressure from high borrowing costs due to the Federal Reserve's efforts to manage inflation, impacting overall demand for Phenol. Despite these challenges, manufacturers maintained adequate production activities, balancing supply and demand effectively. The quarter concluded with Phenol DEL Louisiana prices at USD 1095/MT, indicating a positive pricing environment driven by controlled supply and consistent demand from the construction sector. The overall sentiment in the Phenol market remained predominantly stable, with an underlying positive trend.
APAC
In Q2 2024, the Phenol market in the APAC region exhibited a marked upward trajectory, driven primarily by constrained supply, heightened demand from key downstream sectors, and rising crude oil prices. Limited production rates and trade pressures further exacerbated the supply shortage, while geopolitical tensions in Eastern Europe and the Middle East propelled crude oil prices closer to $82 per barrel, impacting raw material costs and, subsequently, Phenol prices. The consistency in cautious buying behavior, characterized by smaller orders, reflected market participants' reluctance to chase high prices, yet the overall trading volume witnessed substantial support from demand recovery post-festivities and the steady climb in production inputs. Focusing on Japan, the country experienced the most significant price fluctuations within the region. Seasonal demand shifts and the strategic decisions of manufacturers to incrementally raise prices were pivotal. Furthermore, Japanese manufacturing firms have been reorganizing their petrochemical operations in response to average demand in Japan and rising production levels in China. As of the latest quarter, the closing price of Phenol stood at USD 940/MT FOB-Osaka. This reflects a stable yet positive pricing environment, with sustained upward momentum linked to a combination of supply constraints, rising raw material costs, and strategic market positioning by manufacturers. The overall sentiment in Q2 2024 for the APAC region was decisively positive, driven by intricate interplay between supply chain challenges and robust demand from downstream industries.
Europe
In Q2 2024, Phenol pricing in the Europe region has exhibited a varied trend, driven by a confluence of factors that have substantially influenced market prices. In early Q2, the demand from the downstream Bisphenol A industries has been observed to be lackluster, as a result, the procurement of upstream Phenol has decreased. As a result, the manufacturers have reduced their offers. On the upstream front, the cost support from Benzene has also been limited to strengthen the pricing dynamics of Phenol. Furthermore, the downstream production facilities have been operating at slightly reduced rates as there was already enough availability of the finished stocks to meet the demand from the terminal markets. However, with an increase in freight rates and Crude Oil prices, the prices of Phenol have improved in the second half of the Q2 2024. Focusing exclusively on Germany, the market has seen the most significant price changes within the region. The seasonality trends, coupled with the summer peak in crude oil demand, have bolstered the upward momentum in Phenol prices. The correlation in price changes can be observed with an approximately 5% uptick from the previous quarter in 2024, reflecting bullish market dynamics. The latest quarter-ending price of Phenol FD Hamburg in Germany was USD 1550/MT, encapsulating the consistent increase throughout Q2. The increasing prices context for Phenol in Europe during this quarter reflects a predominantly positive pricing environment, influenced by heightened raw material costs and global supply-side pressures. The market's resilience amidst these challenges indicates a strong pricing trajectory, particularly in Germany, which continues to lead the region in price volatility and increments.
For the Quarter Ending March 2024
North America
In Q1 2024, the North American region experienced increasing prices for Phenol. Various factors influenced market prices during this period. One significant factor was the rising prices of upstream Benzene, which resulted in higher manufacturing costs for Phenol. Additionally, concerns about crude oil supply, due to production cuts by OPEC+ nations, posed challenges for the downstream petrochemical industry. The reduced production rates of manufacturing firms also led to a lower availability of finished goods, causing manufacturers to raise their prices. On the demand side, inquiries from the downstream Bisphenol A industries improved, supporting the upward trend in Phenol prices.
However, there were a few disruptions that affected the market. INEOS Phenol's plant in Theodore, Alabama faced a force majeure event due to freezing weather, resulting in a disruption in production from January 16 to January 25. Similarly, Shell Chemicals' plant in Deer Park, Texas experienced an unforeseen outage, leading to a disruption in production from January 1 to January 31. Additionally, Shell Chemicals' plant in Deer Park, Texas experienced another disruption in February due to unforeseen outages, resulting in reduced production from February 1 to February 24.
The USA, in particular, witnessed significant price changes during Q1 2024. The market sentiment for Phenol remained bullish, with prices increasing by 23% compared to the previous quarter. There was a noticeable price difference between the first and second half of the quarter, with a decrease of 15% in the latter half. The quarter-ending price for Phenol in the USA was recorded at USD 1050 per ton.
APAC
Phenol prices in the APAC region for Q1 2024 have experienced a decreasing trend. Several factors have influenced market prices during this quarter. Overall, the market has been characterized by stable to negative sentiment, with prices showing a downward trajectory. In Japan specifically, the price changes have been the most significant. The quarter started with a 10% decrease compared to the previous quarter in 2024. This drop can be attributed to subdued demand from downstream industries, particularly in the construction sector. Additionally, the Chinese market has also contributed to the negative sentiment, with a lack of demand and reduced procurement activities due to the Spring Festival Holidays. Looking at the year-on-year comparison, there has been a significant decline in prices, with a decrease of 16%. This can be attributed to the overall economic slowdown in the region. The market has faced challenges such as weak consumer spending and rising inflationary pressures. The latest quarter-ending price for Phenol FOB-Osaka in Japan was recorded at USD 880/MT. This reflects the overall decreasing sentiment in the market. The price comparison between the first and second half of the quarter reinforces the negative trend, with prices showing a 10% decrease.
Europe
The first quarter of 2024 has seen a significant increase in Phenol prices in the European region. The market has been influenced by several factors that have contributed to the upward trend in prices. These factors include rising prices of upstream Benzene, which have led to higher manufacturing costs for Phenol. Additionally, concerns about the supply of Crude Oil, due to production cuts by OPEC+ nations, have created challenges for the downstream petrochemical industry. Reduced production rates among manufacturing firms have also resulted in a relatively lower availability of finished goods, further driving up prices. In Belgium, Phenol prices have seen the maximum price changes in the region. The market has experienced a bullish trend, with prices increasing steadily throughout the quarter. This can be attributed to higher prices of upstream Benzene, which have raised manufacturing costs for Phenol. Overall, the first quarter of 2024 has been positive for Phenol pricing in Europe. The quarter has seen an 8% increase in prices compared to the same quarter last year. In terms of quarterly changes, prices have risen by 34% compared to the previous quarter in 2024. The price increase between the first and second half of the quarter has been recorded at 24%. The quarter-ending price for Phenol FD Antwerp in Belgium is USD 1630/MT. In summary, the Phenol market in Europe has experienced a bullish trend in the first quarter of 2024, with prices steadily increasing. Factors such as higher upstream costs, reduced production rates, and limited availability of finished goods have contributed to the upward price movement.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, the prices of Phenol have remained on the higher end. he inquiries from the downstream Bisphenol A industries have escalated and reinforced the market fundamentals of Phenol. Despite economic challenges in the U.S., construction activity has remained robust due to several factors supporting spending in both residential and nonresidential construction, strengthening the demand fundamentals of Phenol among the manufacturers.
The production activities have been picked up in the US market, as reported by market participants. In October, the U.S. Manufacturing Purchasing Managers' Index (PMI) increased to 50.0 from 49.8 in September, indicating that operating conditions are stabilizing and, boosting the market fundamentals of Phenol. Furthermore, the goods containers have been returning to the U.S. West Coast ports due to resolved labor issues and capacity restrictions at the Panama Canal, signaling a shift in momentum from East Coast ports.
Furthermore, The phenol plant of Shell Chemicals at Deer Park, Texas underwent Force Majeure in December. Amidst the weak seasonal demand, the operating rates of downstream manufacturing firms have also not rebounded in the US market. The latest price of Phenol DEL Louisiana in the USA for Q4 2023 stood at USD 1244/MT.
APAC
Phenol pricing in the APAC region for Q4 2023 witnessed a bearish market sentiment due to several factors. Firstly, low demand from the downstream Bisphenol A industries, resulting in moderate to low demand for Phenol. Secondly, elevated crude oil inventories in the USA and weak demand from the Chinese market led to a decrease in crude oil prices, which put downward pressure on the manufacturing costs of Phenol. Lastly, the operating rates of Phenol manufacturing firms have not fully rebounded, and the availability of Phenol was reported to be moderate to high. Japan witnessed the maximum changes in Phenol prices during this quarter. The country's economy sustained a gradual recovery, primarily bolstered by favorable financial conditions and the impacts of economic stimulus measures. The price trend for Phenol in Japan during this quarter was negative, with a percentage change of -13% from the previous quarter. The price percentage comparison between the first and second half of the quarter was -9%. The price of Phenol FOB-Osaka in Japan at the end of Q4 2023 was USD 880/MT.
Europe
The European Phenol market in Q4 of 2023 witnessed a bearish trend with moderate to low demand from the downstream Bisphenol A industries. Throughout Q4, the persistent inflationary pressures have battered the purchasing power of the end-use industries, leading to bearish market sentiments for Phebol. The availability of finished goods remained adequate despite limited production activities. Moreover, the mild winter and above-average inventories led to a decline in European natural gas prices, further reducing production costs. The shutdown of the INEOS Phenol plant during December 2023 had no significant impact on Phenol supply as the market was dominated by lackluster demand from the construction industries. The prices of Phenol in Belgium plummeted by 2.5% to USD 1196/MT in FD Antwerp, due to the destocking season and the year-end holidays. The European chemical industry has faced challenges due to low global oil prices and sluggish demand influenced by factors like OPEC+ production cuts and global economic pressures. The percentage change in the price of Phenol FD Antwerp from the previous year's Q4 is -16%. The price percentage comparison of the first and second half of Q4 2023 in Belgium is -7%.
For the Quarter Ending September 2023
North America
In the US market, the prices of Phenol have demonstrated a volatile market trend. In early Q3 The price of Phenol remained under pressure in the wake of tepid fundamentals. The demand from the downstream Chemical fibers and Solvent industries has remained moderate and was insufficient to inflict the pricing dynamics of Phenol on the higher side. The cost support from upstream Benzene was also limited. In addition, Inflation slowed to 3.3% in July due to the Federal Reserve's tighter monetary policies, alleviating the pressure from the purchasing sentiments of end-use industries. Furthermore, in mid-Q3, the rise in upstream Benzene costs has provided positive cost support to the price realizations of Phenol. Consequently, manufacturers have raised their quotations in response to this development. Additionally, the Crude Oil prices also escalated, amid the supply concerns infused by production cuts by OPEC+ countries. In terms of production, the operating rate of manufacturing firms has been gradually returning to pre-pandemic levels amidst the improving demand from the downstream Bisphenol A industries. As a ripple effect, Phenol FOB Louisiana prices were settled at USD 1060 per ton in Q3-end.
APAC
In the domestic market of South Korea, the prices of Phenol have demonstrated mixed market sentiments. In early Q3, the ease in upstream raw materials and a reduction in procurement from the downstream construction sector weighed upon the pricing dynamics of Phenol. However, the prices of Pheno have gained momentum towards the middle of the third quarter. The rising costs of upstream Benzene have caused the manufacturing costs of Phenol to settle higher. The downstream purchases from the Bisphenol A industries have been improving, contributing to the upshift observed in the Phenol Prices. On the other hand, the Crude Oil prices also rose, amid tight supply due to the OPEC+ decision on production cuts has overshadowed concerns about slowing demand due to the Federal Reserve's interest rate hike, fuelling the bullish sentiments among the manufacturers. Regarding production, manufacturing companies have been operating at lower capacities to ensure a balanced market environment. Consequently, manufacturing operations have contracted, keeping the Purchasing Managers' Index (PMI) within the negative zone. In addition, the Phenol Plant of Kumho P&B Chemicals at Yeosu, South Korea has witnessed lower run rates. The manufacturing Plant of LG Chem Ltd. at Daesan went through a maintenance shutdown in August. Consequently, Phenol FOB-Busan prices were settled at USD 924 per ton in September.
Europe
Average consumption from the downstream construction sector has kept the prices of Phenol on the lower-end domestic market of Germany in the first half of the third quarter of 2023. On the upstream front, the declining values of Benzene amid limited consumption from its downstream markets has further pressured the market sentiments of Phenol. Furthermore, On the input energy front, according to Gas Infrastructure Europe, Gas inventories across the European Union and the UK amounted to 889TWh. In addition, the storage sites were already 79%, compared with a prior 10-year average fill of just 60%. Thus, it was evident that manufacturing firms have had enough energy materials to supplement the downstream production and the price fall was mainly a ripple effect of the lackluster demand from the downstream construction and Bisphenol industries. Towards the end of Q3, the prices of Phenol have gained momentum. The increase in prices was due to higher costs of upstream Benzene, and Challenges in Crude Oil supply, caused by OPEC+ production cuts, affecting the downstream petrochemical industry. Also, the holiday season slowed down manufacturing, reducing the availability of finished goods. The ChemAnalyst database has shown that Phenol FD Hamburg prices were concluded at USD 1124 per ton in the quarter-end.
For the Quarter Ending June 2023
North America
The price of Phenol declined in Q2 2023 due to a combination of factors, including a decline in downstream Bisphenol A demand, an industrial fire that restricted supply, and a global economic slowdown. The price is expected to remain low in the near future due to these factors. The price of Phenol declined in Q2 2023 due to a decline in downstream Bisphenol A demand and a global economic slowdown. The price fell from FOB USD 1284/MT to USD 1073/MT in the United States. The supply was restricted in the early quarter due to an industrial fire at the INEOS Pasadena Phenol plant, which led to a rise in price in early April. However, prices declined in the latter half of April and throughout the rest of the quarter due to low demand and high inventory. Exports of Phenol declined by 10.5% in volume and 12.5% in value from the same period in 2022. The global economic slowdown has led to lower demand for Phenol, and prices settled at USD 1055/MT on June 30, 2023.
APAC
The price of Phenol declined in Q2 2023 due to a combination of factors, including a decline in downstream demand, an increase in feedstock prices, and sluggish imports. The price of Phenol declined in Q2 2023 due to a decline in downstream industrial demand. In China, the price fell from FOB Qingdao USD 1087/MT to USD 867/MT. The feedstock benzene price increased during Q2 2023, pushing manufacturers to reduce their profit margins. Many manufacturers reported operating at a low rate to compensate for the high feedstock price and low operating demand. The Indian market showed a similar trend, with the price of Phenol declining due to lower downstream industrial demand and high inventory levels. Imports from APAC to Europe were sluggish due to inflation and high energy prices in Europe. Prices of phenol FOB Qingdao settled at USD 850/MT on June 30, 2023. The price of Phenol in the Asian market is expected to remain on the softer side in the coming quarter.
Europe
The decline in the downstream industrial demand in Q2 led to the price decline of Phenol in Europe. Feedstock benzene prices also show a declining trend in Q2, affirming the price decline. According to INEOS, Capacity utilization at Europe's phenol and acetone plants has declined to an average of 50% so far in 2023, having averaged 80% in the period prior to the European gas crisis, it said. Meanwhile, Brent crude oil prices showed a declining trend throughout the last quarter despite the announcement of product cuts by OPEC. The weak prices of crude oil meant sluggish cost support to the downstream petrochemicals, including Benzene. A combination of unprecedented energy prices, high inflation, and a cyclical slowdown have considerably weakened industrial demand for chemical products in the last few quarters, which has pushed forth the talks of recession in the European region. Europe is importing Phenol from China, India, and the United States for its domestic consumption. Prices of phenol FD Hamburg were settled at USD 1230/MT on June 30, 2023.
For the Quarter Ending March 2023
North America
The rising upstream Benzene prices have pressured the manufacturing costs of Phenol throughout the first quarter of 2023. Although, the demand from the downstream paints and coating sector did not reciprocate the upward price trend of upstream raw materials and remained on the lower end. The adequate level of on-site inventories has eased the supply-side pressure. Shorter transit times and falling freight charges with improved availability of containers have supported the constant flow of finished goods. The production facilities have also been operating at their regular rates. Furthermore, towards late Q1, the inquiries from the downstream Bishpohenol A market remained moderate amidst the financial sector worries brought on by the failure of two banks. Thus, Phenol FOB Louisiana prices were concluded at USD 1239 per ton in March.
APAC
In the domestic region of China, the price trends of Phenol have demonstrated mixed market fundamentals. Even after the COVID limitation was lifted in the early first quarter, the downstream paints and coatings industry's purchasing sentiments remained subdued. Furthermore, The operating rates have improved in the Chinese market as several capacities came online after weeks of maintenance amid an improvement in demand in the domestic market. Towards late Q1, The cheap imports coming from Saudi Arabia and Thailand led to a reduction in the market value of Phenol. The cost support from upstream Benzene was also insufficient. As a result, the Phenol prices have inched lower. Consequently, Phenol CFR-Qingdao prices were settled at USD 1087 in March.
Europe
A drop in procurement from the downstream paints and coatings sector weakened the market growth of Phenol in the German domestic market in early Q1. The economic slowdown brought on by volatile energy prices has fostered inflationary pressure across the major economy of Europe, which in turn has imposed downside risk on the price realizations of Phenol. However, the prices improved in the mid-Q1, owing to rising upstream Benzene prices and improved inquiries from the downstream paints and coatings sector. Labor shortages amid wage issues in the European region have further inflicted the pricing dynamics of Phenol to remain buoyant. The production facilities have also operated at a reduced rate for the maintenance of the market balance as the inquiries from the downstream markets were not fully recovered. Therefore, considering the aforementioned reasons, Phenol FD Hamburg prices were assessed at USD 1476 at Q1-end.
For the Quarter Ending December 2022
North America
US Phenol prices have continued their downward decline into the last quarter owing to weak cost support and sluggish demand from the downstream industries. Crude oil prices continued their downward slide in November, thus resulting in weak cost pressure. Meanwhile, demand from downstream paints & coatings industries has been sluggish to stable, resulting in weak volume consumption. Consumer sentiment has dropped drastically in the US market in the last quarter, which has been vindicated by the drop in US PMI, which dipped below 50 (i.e., 49.7) in November 2022, signifying a contraction in manufacturing and industrial activities. The holiday season further contributed to the weak demand dynamics for several commodities. As of November 2022, Phenol prices were assessed at USD 1335 per MT on a FOB basis.
Asia Pacific
Phenol prices in China have continued their declining trend for a major part of the last quarter of 2022, although the market witnessed some very late recovery in the last two weeks of Q4 2022. Weak import prices and declining freight charges coupled with stable to weak demand from downstream paints and coatings and other allied industries culminated in weak pricing sentiment in the domestic market. International demand sentiment has also been on the stable side, as observed in early Q4 2022. Market participants reported ample inventories in the market amid weak buying sentiment. As of November 2022, Phenol prices were assessed at USD 1220 per MT CFR Qingdao,
Europe
In Q4 2022, the European Phenol market displayed a sluggish trend as the market participants reported limited queries from downstream users as the West witnessed a drop in consumption level amid fears of a European recession, which resulted in soft consumer sentiment. Meanwhile, feedstock benzene prices have dropped in the European continent as crude oil prices rallied downwards, easing the cost pressure, while the imports from the Asia pacific have been ample, increasing the material available in the German market. Import availability has increased and has been assisted by a drastic decline in the freight charges on the European routes. Thus, as of December, Phenol prices were assessed at USD 1410 per MT FD Hamburg.
For the Quarter Ending September 2022
North America
Phenol prices witnessed a mixed trend in the USA market during the third quarter of 2022. During the initial of Q3, Phenol prices increased by more than 5%, supported by insufficient material availability. High upstream prices, soaring inflation rate, and mounting energy prices have weighed upward pressure on the Phenol prices. On the other side, consumption from the domestic as well as from overseas markets has been stable. While during mid-Q3, Phenol prices plummeted by more than 10% due to weak demand dynamics and a fall in feedstock cumene prices. The demand from downstream derivative industries remained mostly stable amid sufficient inventory levels, resulting in deteriorated pricing dynamics. However, toward the end of Q3, Phenol prices marginally increased by 1% due to the improvement in the buying activities from the domestic market. As a result, prices of Phenol FOB Louisiana were assessed at USD 1642/MT during September.
Asia- Pacific
Prices of Phenol have showcased mixed trends in the China domestic market during the third quarter of 2022. During July and August, prices dropped as the cost pressure remained weak while the demand dynamics from downstream industries deteriorated. China's battle with Covid in Q3 2022 as the market activities remained under constant threat of covid related disruptions. Furthermore, Port activities were also halted due to the region's increase in covid cases. However, during September, prices increased by 5.3%, supported by the high cost of production. Also, the demand from the domestic market has slightly improved. Procurement was raised ahead of the National holiday in October. However, in South Korea, Phenol prices have witnessed a downward trend during Q3 of 2022 due to weak buying activities from the domestic and overseas markets. Meanwhile, South Korea witnessed supply disruptions in September as a typhoon disrupted trading activities and halted port activities. Although, the inventory level remained stable for the firm due to weak consumption rates from the downstream industries. Hence, prices of Phenol FOB Busan were assessed at USD 1202/MT during September.
Europe
During the third quarter of 2022, Phenol prices fell continuously in the European market, supported by the weak feedstock Cumene prices. The decline in the Phenol prices was attributed to the steady flows of cheap imports from the Asian and the USA market. Although, the domestic cost of production continues to remain high due to soaring energy and operating cost, resulting in low output costs. In addition, the speculation of recession loomed over the European region throughout the third quarter, which lessened consumer sentiments as the inflation rates reached record highs during Q3. According to Eurostat data, inflation in Europe was hiked from 7.1% to 10% during September. Furthermore, supply dynamics remained under pressure amid port congestions and labor strikes. Netherlands, Belgium, and Germany witnessed major port congestions coupled with vessel bundling, while the UK observed labor strikes that limited the material available in the domestic market. As a result, prices of Phenol FD Hamburg were assessed at USD 1581/MT during September.
For the Quarter Ending June 2022
North America
During the second quarter of 2022, the price of Phenol witnessed mixed sentiments in North America. Initially, the price dropped in April and May due to the reduced demand from the downstream derivative BPA and Phenolic Resin. The poor buying sentiments from the Chinese market due to the COVID resurgence resulted in the stockpiling of the product. Hence, the high inventories in the domestic market gradually pulled down the Phenol prices. Later, in June Phenol market gained strength due to the skyrocketed upstream crude. The demand from the Chinese market regained strength after the easing lockdown. Also, the Federal reserves have increased the interest rates, which boosted the Phenol pricing. As a result, the price of Phenol settled at USD 1770/ tonne FOB US Gulf in the quarter ending June 2022.
APAC
Phenol prices showcased an oscillating trend in the Chinese market for the second quarter of 2022. In April and May, the Chinese domestic market was under lockdown restriction following the Zero COVID policy. The continuous suspension of the domestic market affected the buying and selling activities within the country, resulting in the stockpiling of the product. Moreover, the lockdown in Shanghai port has disrupted the trade activities, further pulling down the Phenol prices. Later, by June, the lockdown completely eased, resuming the local markets. Bullish demand from the domestic market was observed after the domestic market restarted. Therefore, the price of Phenol settled at USD 1660/ tonne CFR Qingdao in the quarter ending June 2022.
Europe
During the second quarter of 2022, Germany's Phenol market rose continuously. The Russian incursion on Ukraine increased the price of upstream crude and feedstock benzene and cumene, which in turn increased the cost of Phenol. Additionally, the rising demand from the local and regional markets inflated the price of Phenol. The traders were forced to change their offers because of the high freight costs brought on by the soaring fuel prices. Additionally, the increasing demand for the downstream derivative Bisphenol A and Phenolic Resins also inflated the Phenol market. As a result, the price for FD Hamburg in the second quarter of June settled at USD 2100/tonne.
For the Quarter Ending March 2022
North America
The Phenol price showcased a marginal rise during the first quarter of 2022 in North America. Firm demand from the importing countries for Phenol derivatives with its applications in downstream cosmetics, automotive industries led to a gradual increase in the price trend. Besides the increased demand, reroute in shipments owing to the Russia-Ukrainian conflict led to delayed supplies in the international market. Furthermore, container freight rates were recorded high as the shortage of cargoes persisted in the US. Also, the skyrocketed upstream crude oil value has affected the feedstock Benzene which sequentially supported this upward price trajectory of Phenol across the region. Thus, the prices settled at USD 1410 per MT for Phenol FOB USA in March.
Asia Pacific
Asia market witnessed a consistent rise in the price trend during the quarter ending March due to the plant turnaround of Hindustan Organics during the early January. Furthermore, due to a supply deficit from China as a result of market closures during the Winter Olympics and Lunar Holidays, Phenol prices have continued to rise. Furthermore, the price trend of Phenol was affected by the spike in upstream crude oil value. In the regional market, demand from downstream automotive and electronic sectors increased, indicating an increasing price trend. Henceforth, the prices of Phenol in India were assessed at USD 1785 per MT.
Europe
During the quarter ending March, Phenol prices in Europe indicated an upward trajectory due to upsurge in the regional demand. Besides geopolitical tension has led the crude prices to skyrocket, pressuring the Phenol price to increase. The increased crude price has severely inflicted the petroleum feedstocks influencing the road and rail transportation. However, the spike in demand from cosmetic industries due to increasing young consumers has also boosted the cost of Phenol. Thus, the value of Phenol escalated to USD 1805 per MT in Germany.
For the Quarter Ending December 2021
North America
In the quarter ending December, North America witnessed a continuous decline in demand amidst the appreciable improvement in the supply of Phenol. After the Ida hurricane in Q3, supply improved gradually with resumption in plant operations. Plant operating rates almost reached normally by Q4 leading to ample product availability. Seasonal slowdown in demand especially from the paints and coatings and automotive sector plummeted the demand for solvents in North America. Furthermore, export inquiries also remained low due inventory build-up in various countries. However, in late-December, inquiries again increased which stabilized the declining trajectory of Phenol in the regional market. Phenol FOB prices in USA were assessed at USD 1470 per MT in December.
Asia
During the quarter ending December, market sentiments of Phenol in India continued to drift post the festive season in October. Improved availability of Phenol in China after a long run of energy crisis eased its supply in the Indian market. In line with the diminishing margins, Hindustan Organics imposed a turnaround at its Phenol/Acetone plant in India in mid-November. Phenol prices witnessed a marginal surge due to the delayed restart of Hindustan Organics Phenol plant. However, its prices Phenol witnessed another astonishing drift in late-December in line with the weakness in international demand for the product. A renowned trader based in Mumbai revealed that as enquiries in India have remained stagnant, players have been implementing a negative revision in their prices in order to clear the inventories before the year ends. Amidst the narrowed demand, Phenol prices in India drifted to USD 1480 Ex-Dahej in December.
Europe
Phenol prices in Europe declined consistently in the last two month of the quarter ending December. Supply chain disruption and freight rates gradually eased entering Q4, however the energy crises in the regional led to higher plant operating cost. Even though manufacturing cost of Phenol/Acetone remained firm, fall in inquiries due to year end slowdown caused prolonged dullness in the demand pattern. Feeble demand and improved availability tumbled Phenol FD prices to USD 1725 per MT in December.
For the Quarter Ending September 2021
North America
The prices of Phenol remained firm and balanced during the third quarter of 2021 in North America. The industry reported improved demand and supply dynamics as production levels were nearing pre-storm levels. Q3 pricing for Phenol measured a significant dip as compared to Q2. Phenol pricing was last assessed between USD 1280/MT -1320/MT FOB Texas in August. Demand grew significantly in Q3 from the downstream Nylon, Epoxy Resin, and Polycarbonate production facilities as manufacturing sector picked up to match consumer sentiments. Better demand was observed from the automotive, building, and construction sectors throughout the quarter.
Asia Pacific
In Q3 of 2021, the overall market outlook for Phenol experienced mixed sentiments in the Asia Pacific region. The supply fundamentals of Phenol and its several derivatives remained under stress in Q3 as several plants based in Asia and Europe were heard going off-stream due to a host of challenges in operations. Supply from China remained restricted in September as operating rates were kept low in several plants in compliance with the government’s dual-energy norms. Demand remained stable in Q3 due to consistent offtakes from the downstream automotive and construction sectors. At times of snug global supply, Indian manufacturers were operating their plants at optimum efficiency to cater to strong demand during the third quarter. In India, the price of Phenol escalated from USD 1524/MT to USD 1608/MT in Q3 of 2021.
Europe
The price curve of Phenol in Europe witnessed a downward trajectory in the third quarter of 2021. The regional pricing of Phenol fell on the back of a slump in the prices of upstream Benzene, at the same time ease in the supply of its feedstock caused Phenol to follow the downtrend in Q3 2021. FD Hamburg price dropped from USD 1710 to USD 1485 per MT from July to September.
For the Quarter Ending June 2021
North America
Overall Phenol market outlook in the North American region improved along with the recovery of the industrial infrastructure in the USA Gulf Coast during the second quarter of 2021. Phenol supplies picked up in the region, owing to the restarting of several production units with better operating rates and ample availability of the upstream Benzene. However, some producers were still struggling to operate the Phenol facilities at normal rates. Demand outlook strengthened as the enquiries were piled up from the downstream Nylon, Epoxy Resin and Polycarbonate production facilities. Despite a marked slowness in the automotive demand, the building and construction sectors remained the key demand drivers. The Phenol pricing trend in North American region eased during the second quarter of 2021, with FOB Texas discussion settling at USD 1635 per tonne in June.
Asia Pacific
Phenol market outlook in the Asia Pacific region observed mixed sentiments throughout the second quarter of 2021. Despite the devasting impact of the second COVID wave in several Indian states, the domestic Phenol market witnessed limited hinderance in the local supplies. Supplies in Northeast China were significantly curtailed due to the turnarounds at several producing facilities. South Korean Kumho P&B line 3 and Japan’s Mitsui Chemicals Phenol facility in Sakai were temporarily shut for planned maintenance during May and June. Demand in the China remained firm in Q2 owing to consistent offtakes from the downstream automotive and construction sector with strong economic revival. The pricing trend continued to maintain an uptrend, extending record surged in upstream Benzene pricing. Phenol FOB Dalian prices rose to USD 1555 per tonne levels in June.
Europe
During the second quarter of 2021, Phenol supplies in the European region were balanced to tight owing to turnarounds at several manufacturing facilities. Some ease in import supplies was witnessed due the improved inflows from the US. Demand observed a seasonal push from the construction sector, whereas enquiries from the downstream automotive sector showed marginal improvement in the second quarter. The prices of Phenol in the European market took an uptrend amidst the supply demand imbalance and global inflation in the prices of upstream Benzene. Progression of vaccination programs raised hopes of the quick revival in downstream sectors.
For the Quarter Ending March 2021
North America
During the first half of the quarter, Phenol supplies were severely impacted by the plant turnarounds as two upstream cumene plants went for turnarounds resulting in feedstock shortage. Due to the severe freeze weather conditions in the US gulf region, production outages further resulted in record spike in the prices of Phenol. Shutdown of US-based Olin Corp. in mid-February affected market supplies. The performance of housing sector drove the demand of Phenol, as an extensive infrastructure plan helped the non-residential sector growth. CFR Texas prices took a big hit in March, surging above USD 2570 per MT in the week ending 19th March. Some Phenol supplies was also directed to Europe amid tight global supply.
Asia-Pacific (APAC)
Phenol supplies in Asia Pacific, initially in the quarter improved as the several manufacturing plants ended their maintenance turnaround periods and started operating at their normal efficiencies. However, supplied remained tight for some weeks as some Chinese players curtailed operations during the Chinese Lunar Year. The demand remained high as market could see restocking practices in mid-March to fill the inventories, followed by resurgence consumption from the Phenolic Resin manufacturers. By-product Acetone remained high in demand. This high demand and normal supply pushed up the regional prices of Phenol. The quarterly average of the prices of Phenol in India stood around USD 1204/ton in the market, whereas the CFR prices for Q1 deliveries were assessed at USD 1016/ton.
Europe
The supplies of Phenol in the European region remained constrained in first half of Q1, as the several major plants were on a maintenance turnaround since last quarter, further carried by the slowdown in industrial and commercial activities due to slump in the economy of European region amid fresh lockdown imposed due to second wave of COVID. The demand however surged from the downstream sector, as the automotive sector slowly recovered in the region. Offtakes of Phenolic resins were good with rising demand from the construction sector which later fell toward the end of Q1.
For the Quarter Ending September 2020
North America
Phenol market outlook in North America remained balanced as turnarounds implemented from leading producers like SABIC and Shell, outstripped the excess supply. Since Asia was already flooded with Phenol supply after massive capacity additions from China, export potential of North America reduced to a significant percentage with diminished demand from its major consumers. Although several downstream sectors like automotive and construction showcased promising hopes of recovery, players were cautious over prevailing demand uncertainties on consistent rise in coronavirus number in some parts of the region.
Asia
Market sentiments of the Asian Phenol Market remained under doldrums pressurized by supply overhang due to massive capacity additions of 400 KTPA from China’s Zhejiang Petrochemicals. The situation was exacerbated by the resumption of operations in Japan’s Osaka-based Mitsui Chemicals and Chung Chun PC of China followed with no news of any new turnarounds till the end of next quarter. Furthermore, manufacturers across the Northern Asia operated their plants at nearly full capacities but the inventories of the products remained manageable with strong offtakes for certain derivatives.
Europe
Even after production from several major manufacturers was curtailed to curb supply overhang, the market witnessed surplus cargoes of Phenol as downstream industries made no prominent gains. Although two of the renowned producers Domo Caproleuna and Seqens underwent a maintenance turnaround but it was not enough to revive the dull offtakes of Phenol in the European market. As resurgence of Coronavirus continued to impact the automotive sector, demand for its major derivatives Bisphenol A and Caprolactam remained dampened with low hopes of recovery by the next quarter.
