Phenolic resin prices remained largely stable across Asian and European markets following mid-November 2025, although sentiment stayed weak as monthly price pressure persisted amid falling feedstock costs and sluggish downstream demand.
In China, phenolic resin market conditions were shaped by persistent weakness in feedstock support. Feedstock Phenol and formaldehyde continued their downward trajectory, extending the monthly declines that began earlier in the quarter. China's phenol capacity increased further this year with the commissioning of a new Jilin Petrochemical, 350,000-ton-per-year phenol-ketone unit, adding additional volumes into an already saturated market and intensifying cost-side pressure and in October phenol prices declined by 1.5%.
Formaldehyde mirrored the same trend, with market prices continuing a monthly decline following the holiday period and in October prices declined by 2.5%.
The operating rate of domestic phenolic resin producers hovered near 75%, down from earlier highs as producers adjusted run rates to align with weakening offtake.
Demand for phenolic resin from core downstream sectors offered little support. The construction and real estate slowdown restricted operating rates across wood panel, insulation, and coatings industries, further suppressing consumption of phenolic resin. October construction indicators showed ongoing contraction, underscoring the lack of recovery momentum. Export demand also weakened, with manufacturers reporting a notable decline in orders from key Asian markets.
In South Korea, phenolic resin demand also remained constrained by declining activity in the construction sector. Elevated project costs and reduced profitability stalled new developments, leading to a fall in order volumes. Downstream industries in coatings and wood-based panels curtailed procurement to essential quantities, reinforcing subdued market sentiment as buyers delayed non-urgent purchases.
Limited export orders exacerbated the softness, prompting Korean producers to scale back raw material intake. Many firms reported shrinking operational footprints amid rising financial burdens and interest-rate pressures that discouraged new project investment. As a result, buying interest across the phenolic resin value chain stayed weak.
European phenolic resin markets followed a similar pattern of stagnation. Demand from major consuming sectors, especially construction, remained poor as the region recorded one of its sharpest activity declines in recent months. Lower purchasing activity, soft economic sentiment, and persistent competitive pressure from Asian suppliers limited the scope for price improvement. Buyers largely restricted procurement to immediate requirements, leaving trade volumes thin.
High energy costs continued to challenge European phenolic resin producers, eroding competitiveness and prompting strict cost-control measures. Inventory accumulation persisted as sluggish consumption restrained domestic and export absorption, keeping overall market momentum weak.
As per the ChemAnalyst data, Phenolic resin prices are likely to face further downward pressure in the coming month. Year-end destocking is expected to trigger discounted offers from traders and producers, while downstream buyers may postpone procurement in anticipation of additional price drops.
