In the phenol market in the US during the reporting period, there were varying trends within different regions of the world. Prices increased by 1.4% in China due to an increase in demand because of seasonal summer restocking by customers and tight supplies from several makers due to maintenance. Spot market activity in this region was stronger than prior weeks; however, a cautious outlook remained due to ongoing oversupply. The US market remained stable, thanks to balanced supply, continued stable demand from downstream customers for bisphenol A and phenolic resins, and no significant import pressure. The ocean freight market softened, resulting in lower transportation costs; however, uncertainty surrounding the global trade environment continued to negatively affect overall market sentiment.
The global phenol market showed mixed signs of progress or decline, reflecting the broader economic environment of industrial adjustment and trade uncertainties. The various geographic regions of the world demonstrated different patterns of Phenol price movement due to a combination of structural oversupply and constrained demand from the downstream segment, while also continuing to exhibit some variation. In the US market, there was relative stability in the pricing of phenol due in part to the adequate supply and, to a lesser degree, low operating capacity in that market. China has shown slight upward movement, primarily because of temporary disruptions in supply and increasing needs from the downstream segment of the Phenol industry.
The price of phenol remained stable in the US, due largely to the fact that domestic producers continued to operate at full capacity and to maintain adequate inventory levels. The downstream market for bisphenol A, phenolic resins and chemical intermediates, while steady, had not provided much upward momentum for Phenol pricing, but rather provided enough of a cushion to stop prices from declining. Due to continued Phenol market uncertainty regarding imports, trade negotiations and changes in tariff expectations; potential for future arbitrage opportunities for imports have been limited, causing buyers to adopt a more cautious approach to future buying. Additionally, the ongoing macroeconomic environment surrounding transatlantic trade tensions and retaliation by foreign countries continues to weigh heavily on purchasing decisions made by traders looking to buy phenol in advance.
While the Chinese phenolic compound marketplace was improving at a moderate pace due to a marginal increase of 1.4% in the week ended January 6, 2026, becoming slightly more active because of increased activity from traders, suppliers, and end-users reaching for immediate shipments. Increased pricing of products-moderate increase in demand from downstream end-users. Although the price of phenolic compounds increased, the overall sentiment remained suggesting that while the supply/demand dynamics are changing, the longer-term view remains one of supply dependent upon demand due to capacity increases over the past year leading to excessive supply.
A combination of freight market activity and freight market sentiment created a lot of uncertainty. Softening container freight rates across major Asia–Europe and transpacific lanes helped to mitigate the pressure on exporters, while air freight rates between Europe and North America continued to rise as uncertainty over trade conditions stemmed from the events of the last few months. Additionally, the ongoing geopolitical developments between the US and EU regarding tariffs create further mystery and uncertainty around the flows of chemicals throughout the world.
Going forward, phenol industry players think volatility will continue. Temporary interruptions of supply and changing logistics may lead to sporadic increases in price; however, they expect persistent price increases will be hindered by ongoing structural overproduction of phenol, weak demand downstream, and the unpredictability of the world trade situation, especially in export markets.
