During mid-October 2025, Asia’s Phenolic Resin prices rose briefly on post-holiday restocking in China and South Korea yet fell m-o-m due to soft phenol and formaldehyde, ample supply, and muted downstream demand. Europe held steady amid sufficient stocks and sluggish construction.
China’s market reopened after the October 1–8 National Day break with traders scrambling to move cargo. High inventories lingered from pre-holiday caution, but short-week urgency sparked modest buying. Spot deals gained traction, though gains stayed capped by weak feedstocks.
Feedstock Phenol prices in China kept sliding post-holiday. Sinopec cut East China listings, while phenol-acetone plants ran steadily. Inventories remained sufficient to meet tepid rigid demand from phenolic resins.
Formaldehyde stayed under weekly pressure, dragging production costs lower for the phenolic resin. Producers held steady rates but slashed output plans, wary of mounting stocks and flat export inquiries.
Phenolic resin supply remained plentiful. Domestic plants maintained normal utilization, yet shipments slowed sharply during the holiday shutdown. Overseas orders stayed quiet, buyers in Southeast Asia and the Middle East delayed commitments.
Downstream coatings, insulation, and wood-based panel industries exhibited subdued activity, with downstream companies primarily making purchases based on immediate needs, resulting in a lackluster buying and selling environment. Supply in the wood-based panel segment was sufficient, with industry operating rates steady.
Demand for phenolic resin in the South Korea market also remained limited in the downstream coatings, insulation, and wood-based panel industries due to slow down in the end user construction sector. Downstream industries face significant challenges in the construction sector, where 76.2% of apartment sites experienced delays from raw material shortages, labor strikes, and low enthusiasm for new projects during September.
Asia’s factory activity stayed broadly weak, with regional manufacturing struggling amid US tariff impacts.
South Korea’s petrochemical shipments fell 2.8% year-on-year to $3.71 billion in September, reflecting broader regional manufacturing weakness.
Europe’s phenolic resin prices remained stable during mid-October. Sufficient regional supply met low demand from downstream due to slowdown in the end user construction sector. Eurozone construction output fell again in September; residential projects collapsed while civil workers offered slim support.
German industrial production dropped 4.3% m-o-m on plunging car output, curbing phenolic resin use in automotive coatings. Plants ran at reduced rates per VCI data; high energy costs and port congestion in Hamburg, Antwerp, and Rotterdam trapped exports and swelled inventories.
Logistical bottlenecks persisted at the European ports further slowed shipments and increased the phenolic resin inventory on the sites.
Asia’s phenolic resin prices may rise in coming month as seasonal construction recovery lifts demand and restocking gains pace. Europe’s phenolic resin prices could fall amid persistent construction slowdown and macroeconomic pressures weighing on industrial resin use.
