For the Quarter Ending September 2024
North America
In Q3 2024, the Phenolic Resin market in North America experienced a mixed trend. Compared to the same quarter in 2023, prices in the USA saw a sharp decline of 65.2%, driven by weak demand and reduced cost support from key feedstocks like phenol and formaldehyde, which contributed to lower production costs. However, in contrast to this yearly decline, there was a modest recovery from Q2 2024, with prices rising by 1.8%, signaling some level of market stabilization. Despite this, overall demand remained weak, especially from downstream industries such as paints, coatings, and adhesives.
Market participants noted stagnant consumer activity, both domestically and internationally, due to high inventory levels and limited inquiries from core sectors. The ongoing market oversupply, coupled with sluggish procurement activities, continued to exert downward pressure on phenolic resin prices. The market’s momentum remained weak, with insufficient demand-side support to drive a significant recovery.
In summary, while Q3 offered some signs of market stabilization, the Phenolic Resin market in North America remains challenged by oversupply and weak demand. In USA, prices settled at USD 1613/MT FOB Louisiana, reflecting the ongoing difficulties in balancing supply and demand.
APAC
In Q3 2024, the Phenolic resin market displayed a mixed trend. Compared to the same quarter in 2023, prices saw a 16.5% decline in China, reflecting weak demand and reduced cost support from feedstocks, which lowered production cost. However, compared to Q2 2024, there was a modest recovery, with prices increasing by 4.2%, indicating some stabilization in the market. Despite this, overall demand remained sluggish, particularly from the paints, coatings, adhesives and other downstream due to slowdown in the construction activities, which impacted Phenolic resin consumption. Factors influencing these price declines included weak demand from downstream sectors and high inventory levels, exerting downward pressure on prices. Seasonal factors, like heavy rainfall impacting construction activities, further dampened demand, contributing to the negative sentiment in the market. China, experiencing the most significant price changes, saw a significant shift between the first and second half of the quarter, emphasizing the deteriorating pricing environment. In conclusion, the latest quarter-ending price for phenolic resin in the China stood at USD 1359/MT, FOB Qingdao, signaling a persistently decreasing pricing environment. The overall trends underscored a negative trajectory, influenced by a combination of factors that weighed heavily on market dynamics.
Europe
In Q3 2024, the Phenolic Resin market in Europe presented a mixed trend. Compared to the same quarter in 2023, prices saw a steep 62.8% decline in Belgium, driven by weak demand and reduced cost support from feedstocks phenol and formaldehyde, which led to lower production costs. However, compared to Q2 2024, prices stabilized. Despite this stabilization, overall demand remained sluggish, particularly from downstream industries like paints, coatings, and adhesives. The slowdown in construction and automotive sectors significantly impacted Phenolic Resin consumption. Market participants reported stagnant consumer activity, both domestically and internationally, due to ample inventories and limited inquiries from key sectors. The negative market sentiment continued, with producers facing downward pressure on the phenolic resin prices amid oversupply and weak procurement. In summary, while Q3 offered some signs of market stabilization, the Phenolic Resin market in Europe remains challenged by oversupply and weak demand. In Belgium, prices settled at USD 1853/MT FOB Antwerp, reflecting the ongoing difficulties in balancing supply and demand.
For the Quarter Ending June 2024
North America
During Q2 2024, the Phenolic Resin market in North America experienced an upward price trend driven by several factors. The quarter was marked by significant volatility due to supply chain disruptions, increased raw material costs, and fluctuating demand from key industries such as automotive and construction. Prolonged maintenance activities at production facilities and logistical challenges tightened availability, pushing prices higher. Additionally, raw material costs, particularly for phenol and formaldehyde, saw noticeable increases due to global market fluctuations and regional supply constraints, further elevating production expenses for manufacturers.
In the USA, this quarter exhibited the most significant price dynamics. The overall trend reflected a stable yet slightly increasing pricing environment, supported by steady demand from downstream industries. Construction activities peaked during this period, sustaining the demand for Phenolic Resins. Price changes correlated closely with these seasonal shifts and market conditions, leading to a consistent, albeit modest, upward price movement.
Compared to the same quarter last year, prices plummeted by 68%, indicating a substantial year-over-year decrease. However, from the previous quarter in 2024, prices saw a milder decline of 18%, showcasing a more stable pricing environment. Between the first and second halves of the quarter, a minor 1% increase was observed, indicative of gradual price stabilization. Concluding Q2 2024, the latest quarter-ending price for Novolac Phenolic Resin FOB Louisiana in the USA stood at USD 1611/MT.
APAC
During Q2 2024, the Phenolic Resin market in the APAC region witnessed a notable price upsurge primarily driven by several critical factors. Increased raw material costs, particularly for phenol and formaldehyde, played a significant role in escalating production expenses, compelling manufacturers to adjust prices upward. Additionally, a decline in inventory levels and limited import availability exacerbated the supply constraints, further inflating prices. The bullish market sentiment was also fueled by robust demand from downstream industries such as construction, automotive, and coatings, which maintained strong procurement rates amidst steady manufacturing activities. Focusing exclusively on South Korea, the country experienced the most significant price changes, reflecting an overall upward trend. Seasonal demand fluctuations, particularly higher consumption during peak manufacturing periods, significantly influenced the price trajectory. Despite a price decrease from the same quarter last year, an incremental 3% rise from the previous quarter in 2024 was recorded, underscoring a positive pricing environment for this period. The price comparison between the first and second halves of the quarter highlighted a 4% increase, showcasing continued momentum in price growth. As the quarter concluded, the price of Phenolic Resin (Powder) FOB Busan in South Korea stood at USD 1441/MT.
Europe
The second quarter of 2024 saw an increase in phenolic resin prices across Europe, driven by several crucial factors. Heightened demand from key downstream sectors such as automotive and construction, coupled with disruptions in the supply chain, led to tightened availability and upward price pressure. Additionally, consistent rises in the prices of key raw materials, including phenol and formaldehyde, amplified production costs for manufacturers, necessitating price increases to maintain profitability. Focusing on Germany, this market witnessed the most significant price changes. The overall trends indicated a persistent upward trajectory in phenolic resin prices, influenced by robust demand from the construction and automotive industries despite seasonal fluctuations. The correlation between increasing raw material costs and final product pricing was evident, with a notable percentage change from the same quarter last year at -65%, reflecting a recovery phase. The percentage change from the previous quarter in 2024 was recorded at -18%, indicating an upward adjustment in prices as the market stabilized. A price comparison between the first and second half of the quarter showed a slight increase of 1%, reinforcing the steady pricing environment. The latest quarter-ending price for Novolac Phenolic Resin in Germany was USD 1841/MT FOB Hamburg. This consistent increase in prices reflects a positive pricing environment, as manufacturers responded to supply chain constraints and rising input costs, ensuring stable profitability and market equilibrium.
For the Quarter Ending March 2024
North America
In Q1 2024, the North American region witnessed a significant decrease in prices for Phenolic Resin. Several factors contributed to this downward trend. Weak demand from downstream industries, such as molding powder, circuit boards, laboratory counterparts, coating, and adhesives manufacturing, played a crucial role in driving prices lower. The overall market transactions were low as consumers refrained from accumulating excess supplies.
According to industry experts, product inventories were at elevated levels, leading to price declines due to poor consumption rates. Additionally, increased competition from other resin markets has put pressure on domestic manufacturers of the product, resulting in shrinking profit margins. On the cost side, the support from the upstream Phenol market declined while that from the Naphtha market was stable. Also, due to the Easter holiday, the market was operating at a slower pace than usual.
Furthermore, there was a notable price difference between the first and second half of the quarter, with prices dropping by 29%. This suggests that the pricing environment remained negative throughout the quarter. As Q1 2024 came to a close, the prices of Novolac Phenolic Resin FOB Louisiana settled at USD 1570 per tonne in the USA. This reflects the continued bearish sentiment in the market.
APAC
During the first quarter of 2024, the pricing of Phenolic Resin in the APAC region experienced stability after a decline in the previous quarter. This stability was influenced by various factors, including improved conditions in the construction sector and increased infrastructure development, leading to a stronger demand for the product. Additionally, the global economy showed signs of recovery, with reduced debt issues and improved consumer confidence, resulting in increased market transactions.
China, being a significant player in the Phenolic Resin market, witnessed more favorable market conditions during this period. The supply of Phenolic Resin remained steady, and there was a notable increase in demand from downstream industries such as automotive and construction. Both domestic and international downstream consumers showed a heightened interest in the product, leading to promising inquiries. Fortunately, no plant shutdowns were reported by market participants, ensuring a consistent supply.
The quarter-on-quarter change in prices is also negative at -5%. However, there has been no significant price difference between the first and second half of the quarter, indicating stability in the pricing environment. The quarter-ending price for Phenolic Resin (Powder) in China is recorded at USD 1305/MT FOB Qingdao, reflecting the overall decreasing sentiment in the market.
Europe
The pricing environment for Phenolic Resin in the Europe region during Q1 2024 has been negative, with prices experiencing a significant decline. The market has been influenced by ongoing subdued demand from downstream industries such as adhesive, coatings, molding, and insulation manufacturing. Consumer inquiries have consistently shown weakness, exacerbating the negative sentiment in the market.
Several factors have contributed to the decline in prices. The cost pressure from upstream Phenol and Naphtha markets has continued, with prices dropping in the European region. Additionally, the impact of crude oil prices has affected the prices of Phenolic resin. Rising geopolitical tensions in the Middle East, a crucial region for global energy production, have led to an increase in crude oil prices. Concerns over supply disruptions and conflicts have heightened worries about global oil supply, further boosting crude oil prices.
Overall, businesses have been operating at a slower pace, and market transactions have been minimal. The supply of Phenolic Resin has been moderate, with adequate inventory to meet current demand. However, demand from downstream sectors has remained weak, both domestically and in overseas markets.
For the Quarter Ending December 2023
North America
During the fourth quarter of 2023, Phenolic Resin pricing in North America was bearish due to weak demand from downstream industries such as adhesives and coatings. Consumer inquiries were milder as sufficient material availability was reported in the domestic market, leading to a decrease in prices. The USA experienced the most significant changes in prices, with Novolac Phenolic Resin FOB Louisiana settling at USD 3100/MT.
The trend for Phenolic Resin in the USA during this period was bearish, with a -45% percentage change from the same quarter in the previous year and a -33% percentage change from the previous quarter. The price percentage comparison of the first and second half of the quarter in the USA was -17%. Weak cost support from upstream Phenol and Formaldehyde was the primary reason for the decrease in prices throughout the quarter.
Additionally, high inventories in the market, procurement slowdown, and consumer destocking of inventories also contributed to the bearish market. In conclusion, North American phenolic Resin pricing during Q4 2023 was bearish, with the USA experiencing the most significant changes in prices.
APAC
The APAC region's phenolic resin market witnessed a bearish trend in the fourth quarter of 2023 (Q4), with lower demand and higher supply. The downstream demand from the automotive and construction sectors remained weak, leading to sluggish inquiries from downstream consumers. Built-up inventories of the product were anticipated in the domestic market, affecting market sentiments. The demand from downstream industries such as molding powder, circuit boards, laboratory counterparts, coatings, and adhesives manufacturing remained weak amid poor consumption rates. No major supply chain constraints or port congestions were observed during the quarter. The overall business transactions were average, and market activities remained limited during the mid-autumn holidays. The percentage change in the price from last year's same quarter was -37%, while the percentage change from the current to the previous quarter was -4%. The price percentage comparison between the first and second half of the quarter in China was -3%. The quarter-ending prices of Phenolic Resin (Powder)-FOB Qingdao in China were USD 1326/MT.
Europe
The European market for Phenolic Resin in the fourth quarter of 2023 was characterized by a bearish trend, with prices declining across the region. The supply of Phenolic Resin remained at lower levels due to weaker downstream demand and sluggish import rates. Manufacturing activities were slow, resulting in poor domestic consumption and low overseas demand. One of the primary reasons for the bearish market was the slowdown in manufacturing activities, which limited the supply of Phenolic Resin. Additionally, the cost support from upstream markets dropped, further affecting production. In Belgium, the price of Phenolic Resin showed a significant decrease of 6.4% compared to the previous quarter. Looking at the year-on-year comparison, the price of Phenolic Resin in Belgium decreased by 31% in the fourth quarter of 2023 compared to the same quarter in the previous year. This significant decline indicates a downward trend in prices over time. Overall, the European market for Phenolic Resin in the fourth quarter of 2023 experienced a bearish trend, with prices declining across the region. Belgium saw a significant decrease in prices, reflecting the overall market conditions. The latest price of Novolac Phenolic Resin FOB Antwerp in Belgium for the fourth quarter of 2023 was USD 3420/MT.
For the Quarter Ending September 2023
North America
In the third quarter of 2023, the Phenolic resin market in the Asia-Pacific region demonstrated a bearish trend. The general market fundamentals for Phenolic Resin in the US domestic market declined, and prices declined marginally as a result of negative cost supports from feedstock Phenol. The downstream adhesives and coatings sectors’s demand was stable, and domestic producers kept enough supplies on hand to meet consumer demand. Prices of Phenolic Resin fell further in the US domestic market in August due to lackluster demand from the downstream adhesives and coatings sectors. In terms of production, the feedstock Phenol cost support was reduced by 1.9%, resulting in low production costs. According to market participants, the product's stockpiles were sufficient to meet current customer demand. The manufacturing PMI increased from 49.0 in June to 49.0 in July, indicating the smallest fall in manufacturing operating conditions. As of September 2023, the prices of Phenolic Resins in the USA were assessed at USD 4434 per tonne.
APAC
In the third quarter of 2023, the Phenolic resin market in the Asia-Pacific region demonstrated a bearish trend. The cost support from upstream Phenol and Naphtha prices fell, resulting in low production costs. As China's economic slowdown dampens demand, naphtha prices fell, approaching a two-and-a-half-year low. Additionally, demand from downstream companies in the construction and automotive sectors fell, and the supply of the product was normal in the region. Prices of Phenolic Resin fell in August on the Chinese domestic market due to sluggish demand from the downstream construction and automotive industries and the cost assistance from the upstream Phenol fell, resulting in reduced production costs. According to the official NBS manufacturing PMI, which climbed to 49.3 in July from 49.0 in June, it remained below the 50-point line, indicating a dip in factory activity amid declining new orders and export sales. As of September 2023, the prices of Phenolic Resins in China were assessed at USD 1448 per tonne.
Europe
In the third quarter of 2023, the Phenolic resin market in the European region demonstrated a bearish trend. Phenolic Resin market sentiments fell in the German domestic market because of sluggish demand from the downstream adhesive, coatings, molding, and insulation production industries. According to market participants, inflationary pressures continued to influence regional company activity, and the consumer market remained sluggish under uncertain economic conditions. In July 2023, the eurozone manufacturing purchasing managers index fell to 42,7 from 43.4 the previous month, indicating a year of continuous contractions as increasing borrowing rates from the European Central Bank (ECB) continued to have a significant influence. Furthermore, in August and September, the prices plummeted further as the demand outlook worsened and the manufacturing costs tumbled week-on-week. Overall, the market transactions were limited, and low-volume trades were generally registered. Furthermore, new export orders were much lower as a result of decreasing sales to China and across Europe. As of September 2023, the prices of Phenolic resin in Germany were assessed at USD 4760 per tonne.
For the Quarter Ending June 2023
North America
The prices of phenolic resin showed mixed sentiment in the second quarter of 2023. In the month of April, the price remained stable, with a slight increment in price due to a price increment in the feedstock phenol. The demand system in the month of April remained adequate, and inventory levels were sufficient to handle both international and domestic requirements. In the months of May and June, the prices of phenolic resin declined by 5%. The demand situation in the month of May has remained consistent from the downstream automotive and construction industries in the region, and the domestic producers had stable production outputs, ensuring sufficient material availability in the region, and the outlook remained stable in the month of June. Feedstock prices continued to show a bearish trend in the latter half of Q2. The manufacturing PMI decreased from 48.4 in May to 46.3 in June 2023, indicating the largest contraction in the manufacturing sector since December 2022. the prices of Novolac Phenolic Resin FOB Louisiana settled at USD 5000/MT in the week ending on 30th June 2023.
APAC
The prices of phenolic resin showed a bearish trend in the second quarter of 2023. In the Chinese market, the prices showed a declining trend across the quarter. The demand from downstream automotive industries remained stable, while the inquiries reveal that there is a slight dip in demand from construction industries. The decline in feedstock prices also significantly contributed to the pricing of resin. Indian markets behaved on the lines of the Chinese market, with demand remaining stable while inquiries reveal imports increased in the month of April to offset the increasing price of phenol in Indian markets from China. In the months of May and June, the prices showed a bearish trend due to weaker cost support from the upstream feedstocks. Energy costs also declined in the Chinese markets. The demand situation remained stable with a slightly bearish tone because of the global economic slowdown and weak Chinese recovery. The offered quotations for Phenolic Resin (Powder) FOB Qingdao settled at USD 1940/MT in the month of June 2023.
Europe
The prices of phenolic resin showed a bearish trend in the second quarter of 2023. In the German domestic market, the prices showed a declining trend across the quarter. Energy prices declined in Germany for the second quarter, continuously providing weaker cost support. Feedstock prices in German markets increased marginally, but the demand remained weak as PMI decreased to 44.5 in April 2023. In the months of May and June, the energy prices combined with the price of feedstock phenol provided significantly weaker cost support to the downstream industries. The demand situation remained bleak, and the price in German markets remained took a bearish stance. The manufacturing PMI dropped to 43.2 in May from 44.5 in April on the back of manufacturing output contraction. In the Netherlands, the prices of Phenolic Resin declined further in the domestic market of the Netherlands owing to weaker demand from the downstream adhesive, coatings, molding, and insulation manufacturing industries. As Europe’s GDP declined in each of the last two quarters, the eurozone now finds itself in a technical recession, and the demand deteriorated due to high inflation in the region. The offered quotations for Phenolic Resin FOB Hamburg settled at USD 5380/MT in the month of June 2023.
For the Quarter Ending March 2023
North America
In the North American region, the overall market prices of Phenolic Resin showcased a mixed pricing trend. In the initial few weeks, lacking market competitiveness in the region and limited inquiries from the Asian markets led to bearish market sentiments in the US domestic region. In February, the prices increased marginally amid stable demand and increased cost support from the feedstock Phenol and formaldehyde resulting in higher production costs. In March, the market sentiments improved further, and prices inclined in the region amid stronger cost support from the upstream Crude oil. The demand from the downstream automotive and construction industries remained in the positive territory. Thus, the overall market prices of Novolac Phenolic Resin FOB Louisiana settled at USD 5302 per tonne at the end of Q1 2023.
APAC
The Phenolic Resin market in the Chinese domestic region showcased a mixed pricing trend in the first quarter of 2023. In January, the market prices remained on a downward trajectory due to weaker cost support from the feedstock Phenol in the region. In February, the prices increased marginally due to stable demand from the downstream industries. Also, the cost support from the feedstock Phenol and formaldehyde rose in this time frame resulting in increased production costs of Phenolic Resin. In March, the production rates were usual, and the input costs were consistent, whereas the downstream demand from the coatings, adhesives, and automotive industries surged, resulting in bullish market sentiments for Phenolic Resin in the region. Thus, the offered quotes for Phenolic Resin (Powder) FOB Qingdao settled at USD 2131 per tonne at the end of Q1 2023.
Europe
In the first quarter of 2023, the market prices of Phenolic Resin showcased a mixed pricing trend in the German domestic market. In the first month of Q1, the market prices dropped amid weak cost support from the feedstock Phenol and sluggish demand outlook in the region. In February, the prices increased slightly amid positive cost support from the feedstock, although the downstream demand from the coatings and adhesives industries was reported to be moderate. In March, the prices inclined upwards, backed by increased prices of upstream crude oil prices in the region. Also, the downstream demand improved from the automotive and construction sectors. The overall supply chain was regular in this time frame, and hence, the prices of Novolac Phenolic Resin FOB Hamburg settled at USD 5690 per tonne at the end of Q1 2023.
For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, the Phenolic Resins market in the North American region has persisted on a bearish trajectory. These developments have been majorly attributed to the muted inquiries for Phenolic resins from the overseas market for the majority of the period during the quarter. However, the market dynamics were pressurized during December as the complete embargo on Russian energy supplies coupled with the soar in demand from the Asian market during the second half of December. In addition, several upstream facilities took precautionary measures by reducing or suspending the operating rates at the facilities amidst the extreme weather conditions in the US, as it disrupted the power and transportation facilities across the US. As a ripple effect, the FOB Louisiana discussions for Novalac Phenolic Resins were assessed at USD 5324 per tonne in December 2022.
Asia Pacific
Overall the Asia Pacific market for Phenolic Resins has remained bearish throughout the fourth quarter of 2022. This development has been majorly attributed to the rising inflation globally, which is further coupled with the lack of demand in the region. Prominent importing markets such as China were operating their downstream facilities in lower loads at the sites due to the COVID restrictions. At the same time, the consistent imports of Russian Crude supplies by India and China have somewhat restricted the cost support from the feedstocks and upstream commodities. As a ripple effect, the FOB Qingdao discussions for Phenolic Resins (Powder) were assessed at USD 2105 per tonne in December 2022.
Europe
Overall the Phenolic resins market in Europe observed a mixed sentiment during the fourth quarter of 2022. The market witnessed slight growth early during the fourth quarter as the market activities resumed after the long summer holidays. However, the market sentiments plunged due to the hiked interest rates and double-digit growth in inflation. This market trend has been majorly attributed to the lack of market competitiveness amongst the European players, low operating rates, and intervention of the overseas players have kept the European polymers market depressed. However, the soaring energy cost has levied a substantial impact on the operating rates at manufacturing facilities across Europe. As a ripple effect, the CFR Rotterdam discussions for Novolac Phenolic Resins were assessed at USD 5710 per tonne in December 2022. Meanwhile, declining freight charges resulted in an increase in Asian exports on European shores.
For the Quarter Ending September 2022
North America
Phenolic resin prices have continued to fall in the North American region, throughout the third quarter of 2022, due to sufficient inventory level coupled with bearish demand from the downstream adhesives and coating and other industries. Despite this, feedstock Phenol and Formaldehyde prices fluctuated in the regional market. On the other side, supply dynamics remained under pressure as the key exporting port of Houston witnessed port congestion that limited the material available in the overseas market. Although, gloomy demand from the European nations and Asian countries resulted in the restricted effect of constrained supply on the overall prices of Phenolic resin. Phenolic Resin FOB Louisiana Prices were assessed at USD 5490/MT during September 2022.
Asia- Pacific
Prices of Phenolic resin showed mixed sentiments in the Chinese domestic market during the third quarter of 2022. During July and August, Phenolic resin declined as the cost pressure remained weak while demand dynamics from downstream industries declined. China’s battle with Covid in Q3 2022 as the market activities remained under constant threat of covid related disruptions. Also port activities were also halted due to the resurgence in covid cases across the region. However, during September, prices increased by 1.7%, supported by the high cost of production. Feedstock Phenol prices have rebounded. On the other hand, the demand from domestic and overseas markets has slightly revived. Procurements were raised ahead of the National holidays in October. Hence, prices of Phenolic resin FOB Qingdao were settled at USD 2248/MT during September 2022.
Europe
During the third quarter of 2022, Phenolic resin prices have gained a downward trend in the European market due to the ease in the feedstock Phenol prices. Furthermore, since the beginning of the Russia- Ukraine war, the European nation has faced strong headwinds due to the crunch in natural gas supply. The limited natural gas supply has imposed downside risks on the manufacturing capacities of the downstream industries. In addition, domestic production costs remain high amid mounting energy and operating costs, resulting in weak output rates. However, cheaper imports from Asian countries caused the Phenolic resin to drop in the regional market. Demand from the downstream coating and adhesives has been sluggish amid high inflation rates; hence, as a result, prices of Phenolic resin were assessed at USD 5800/MT during September 2022.
For the Quarter Ending June 2022
North America
Phenolic Resin followed a fluctuation in the US domestic market for the quarter ending June 2022. Initially, the price dropped following the negative price trend of its upstream phenol. Moreover, the demand for the product fell due to the poor requirement from the end-use automotive, construction, and electronic sectors. Later the values of Phenolic Resin increased as the price of exported cargoes rose. Also, the interest rate hike by the Federal reserves has inflated the Phenolic Resin pricing in the US market. Therefore, the increasing demand from the regional markets and the high freight charges have resulted in an uptrend in Phenolic Resin pricing.
APAC
During the second quarter of 2022, the price of Phenolic Resin in the Indian market witnessed an oscillating trend. The factor supporting the up and down price movement of Phenolic Resin in Q2 is the fluctuating demand in the domestic market. At the beginning of Q2, the price of Phenolic Resin dropped due to the fall in imported cargoes value as the purchasing was poor from the domestic market. Later, the prices witnessed a marginal rise during the mid and end of the second quarter. The cost of imported cargoes rose as the purchasing activities rose slightly. The demand for the product from the downstream coating, laminating, construction, and automotive sectors increased, which influenced the Phenolic Resin market.
Europe
In the second quarter of 2022, Phenolic Resin prices showcased a mixed sentiment. Due to supply chain disruptions that prevented resin exports from Germany, Phenolic resin prices in Germany increased in May. As a result, traders and distributors have been forced to turn to distress selling on the domestic market to reduce their inventories. Due to ongoing congestion at key container terminals in China and Southeast Asian countries, export demand from East Asia was negatively impacted. Additionally, European ports' lack of ship space hampered the lucrative Indo-Pacific trade arbitrage from late April to early May. By the second week of May, the supply chain disruption brought on by the ongoing conflict in eastern Europe and the decongestion at Asian ports had gradually begun to fade. Thus, both the European and Asian markets' demand began to increase. Given that Russia's methanol shipments have been suspended for the past two months due to western sanctions against Russia, feedstock formaldehyde prices have also increased.
For the Quarter Ending March 2022
North America
Prices of Phenolic Resin observed an upward trajectory in the first quarter of 2022 in North America owing to the limited availability of feedstock Phenol amidst its appreciable demand. Phenolic Resin prices were observed at USD 4320/ton CFR New York in USA in the beginning of the quarter. However, in late December, owing to the low manufacturing of automobiles due to semiconductor shortage and Phenolic Resin demand, Phenolic Resin witnessed a gradual slowdown in demand. Besides, the meagre supply of the product to meet the demands of the downstream industries such as automobiles, building & construction, and electronics, the market sentiments remained high throughout the quarter.
Asia Pacific
Taking pressure from domestic raw material costs amid solid demand from the domestic market, prices of Phenolic Resin rose significantly during the first quarter in India. An overall increase of 3.1% was seen in Q1 in India. A consistent surge in the prices of Phenolic Resins was observed during the first quarter of 2022, supported by the steep rise in its demand in the post-pandemic period. Orders from the downstream adhesives, coatings, and oil well proppants industry were healthy and stable throughout the first quarter as the rebound of those sectors boosted the Phenolic Resin industry. Cost of Phenolic Resin was assessed at USD 2100/ton FOB Qingdao in January in China.
Europe
In Europe, prices of Phenolic Resin surged upwards in Q1 2022 due to the robust demand from the region and the overseas market and the sudden surge in the energy values. Phenolic resin prices were witnessed at USD 3680/ton FOB Hamburg. Moreover, spiralling merchandise charges and constraint availability of the shipping containers restrictions sent ripples to the cost of Phenolic Resins in the European region during this time frame. Demand from downstream segments observed a seasonal hike, as inquiries from the downstream adhesives and coating production facilities and the automotive industry improved throughout the first quarter.
For the Quarter Ending December 2021
North America
In North America, prices of Phenolic Resins remained mixed owing to the increase in the availability of feedstock Phenol amidst its appreciable demand. Prices of feedstock Phenol were assessed at USD 1470 per MT in December. However, in late December owing to low manufacturing of automotive due to semiconductor shortage and Phenolic Resin demand witnessed a gradual slowdown in the demand. Export demand for Phenolic Resins also declined for the same reason which led to significant decline in the regional export revenue.
Asia Pacific
Taking pressure from domestic raw material cost amid stable to firm demand from the domestic market, Phenolic resin rose significantly during the month of October in India. Despite of the fact that feedstock Phenol prices have been declining consistently since the first week of October, traders claimed that they received high queries for phenolic resins in the meantime. However, post the festive season, demand for Phenolic resin witnessed an appreciable decline with prices falling to USD 5783 per MT in December. Furthermore, consistent fall in prices of feedstock Phenol also assisted in the prolong dullness in its prices.
Europe
Phenolic Resins market showcased mixed sentiments in Q4 2021 in the European region. In first half of Q4, marginal rise in the cost of Phenolic Resin was witnessed due to the robust demand from the regional and the overseas market and sudden rise in the energy values. However, by mid-November, a slump in the prices of Phenolic resin was witnessed owing to the ample availability of the product. Moreover, ease in freight charges and high availability of feedstock kept Phenolic prices at ease in Q4.
For the Quarter Ending September 2021
North America
In North America, prices of Phenolic Resins remained balanced backed by the stability in the feedstock phenol values during the third quarter of 2021. Besides, ample supply of the product to meet the demands of the downstream industries such as automobile, building & construction and the electronics kept the market sentiments high throughout the quarter. However, arrival of the hurricane Ida in August end in the Gulf Coast of the US impacted the production and the supply chains in the region that led to the marginal hike in its prices in September. However, after several weeks, Phenolic resins prices gained their stability back with the resumption in the industrial operation in post hurricane period.
Asia Pacific
In Q3 of 2021, Phenolic Resins market outlook experienced an upward rally in the Asia Pacific region. A consistent upward trajectory in the prices of Phenolic Resins was observed during this quarter supported by the steep rise in its demand in the post pandemic period. However, in the latter part of the quarter, Phenolic Resins prices attained stability after witnessing consistent increment for more than three months. In India, Phenolic Resins market outlook appeared bullish with robust demand from the downstream industries and tight fundamentals that kept the prices in upward trend during this quarter. In addition, soaring raw materials prices also remained a major concern for resins manufacturers which compelled them to revise their prices to maintain their profit margin. Consequently, Phenolic Resin (novolac resin) CFR-Chennai prices hovered around USD 6770.68 per MT in September.
Europe
During Q3 of 2021, in the European region Phenolic Resins market showcased mixed sentiments. At the beginning of the quarter, a slump in the prices of Phenolic resin was witnessed owing to the ample availability of the product and drop in the values of upstream. However, in the latter half, marginal rise in the cost of Phenolic Resin was seen due to the robust demand from the regional and the overseas market and sudden rise in the prices of upstream Phenol and Formaldehyde during this quarter. Moreover, spiraling freight charges and constraint availability of the shipping containers further sent ripples to the values of Phenolic Resins in the European region during this time frame.
For the Quarter Ending June 2021
North America
Overall market outlook in the North American region improved following the recovery of the industrial infrastructure in the US Gulf Coast during the second quarter of 2021. Supply improved in the region, owing to the restart of several refineries with better availability of upstream Benzene. However, couple of producers struggled to operate Phenol facilities in normal rates. A major producer of Phenolic resins Hexion closed sales of Phenolic Resins in late April, as handed over its business to Black Diamond to reduce the debt. Demand surged in the second quarter as the intakes from the adhesives and coating industries remained constant amidst the seasonal hike from the building and construction sector. As a ripple effect, prices continuously strengthened with FOB Texas discussions reaching USD 2870 per tonne in June.
Asia Pacific
Asia Pacific region observed mixed sentiments in the second quarter of 2021. In Northeast Asia and China, the supply of feedstock Phenol remained pressurized due to the turnarounds in several Phenol manufacturing facilities across the regions, including South Korean Kumho P&B line 3 and Japan’s Mitsui Chemicals Phenol facility in Sakai in May and June. Demand in the Asia Pacific remained balanced throughout the quarter, owing to the consistent offtakes from downstream adhesives and coating industries. Till May prices of Phenolic resins were on a up stride with support of imposed taxes on imported heavy aromatics commodities. Although the pricing trend declined in June with Ex-Work Jiangyin prices in June being assessed at USD 1994 per tonne.
Europe
During the second quarter of 2021, supplies in the European region were balanced to tight owing to the turnarounds in several manufacturing facilities across Europe. Further the ease in availability was witnessed due the improvement in imported volumes from the US. Demand observed a seasonal hike from the construction sector, whereas enquiries from the downstream adhesives and coating production facilities and from the automotive sector improved throughout the second quarter.
For the Quarter Ending March 2021
North America
During the first quarter of 2021, Phenolic Resin supplies in the North American region were tight due to the unprecedented freeze weather conditions in the US Gulf region which led to several plant outages. In March, Hexion Inc. announced intent to expand its Portland Oregon site as the first automated production line will come online at the end of first quarter of 2021. The demand however surged amid widening supply-demand gap widened due to halted production of Phenol at several facilities in US.
Asia-Pacific (APAC)
The supply of Phenolic Resins during the first quarter remained firm in Asia, due to sufficient availability of the feedstocks as major regional players ended their turnaround in H1 of the first quarter. India’s state-owned Assam Petrochemicals commissioned the Phenol-Formaldehyde plant in January. Hexion’s Phenolic Resins plant in Zhenjiang’s province was sold to Red Avenue New Materials Group Co Ltd, a Chinese company dealing in new materials for electronics, environmental protection, tire, and auto markets. The demand remained balanced as the buyers went for spot offtakes to avoid surplus inventories, amid fluctuating consumptions from the downstream sector. The average price of Phenolic resins in the Indian market was estimated around USD 1207/ton throughout the quarter.
Europe
The supplies in Europe region market improved as a major feedstock plant restarted after turnaround with prolonged shutdown of the feedstock Phenol manufacturers in the US, which fulfilled the availability of feedstock from the downstream adhesives sector. Towards the end of the quarter, the demand remained affected due to reduced offtakes from downstream sectors amidst lockdown restrictions imposed in several countries.
For the Quarter Ending December 2020
North America
The supplies of Phenolic Resins were balanced in the H1 of Q4, due to turnarounds at the upstream Phenol units. The demand of Phenolic Resins showed continuously inclination, due to rebound of the automobile and construction sector. Paints and coating industry performed well due to increment in construction activities, thereby paving the way for surge in overseas shipments. Players were on massive strategic investments to recover the pandemic induced losses. Columbus based thermoset resin giant Hexion Inc. announced a definitive agreement to sell its Phenolic Specialty Resin and other resins product segment to Black Diamond and Investindustrial worth approximately USD 425 million in the beginning of the quarter.
Asia-Pacific (APAC)
The consumption of Phenolic Resin witnessed an uptrend in H1 of Q4 2020, since the cruciality of adhesives and coatings in the automobile sector cultivated surge in consumption of Phenolic Resins throughout the quarter. In the other half of fourth quarter, several producers were cutting the production rates of feedstock phenol, fearing slump in its value amid the upturn of COVID-19 in some regions. Demand from the downstream industry was healthy and stable throughout the quarter as the rebound of the construction and automobile sector boosted the Phenolic Resin Industry. In India, the rebound of major downstream industries resulted in slight increment in the price curve of Phenol Resins, which maintained an average price of USD 1626 per tonne in Q4 2020.
Europe
The supplies of Phenolic Resins remained stable throughout the fourth quarter. The rebound of construction and automotive sector significantly impacted the consumption of Phenolic Resins during the quarter. Production cuts on the feedstock front at several major plants due to turnarounds and spread of new COVID strain resulted in reduced supply. In first half of the quarter, demand surged as the automobile and construction sector gained momentum as major economies across Europe eased restrictions. But moving into the later half, another lockdown imposed across several parts in Europe hampered the overall sales figure.
