China’s Phenol Prices Trend Continues to Witness a Steady Rise
- 17-Jun-2022 6:13 PM
- Journalist: Kim Chul Son
Phenol prices have been witnessing a slight uptrend in the local Chinese market since the previous week. The stable demand from the consumer end and the tight supply of the product from the regional market influenced the Phenol prices. In addition, raw material values have also been impacting the Phenol values.
The domestic market has been facing a stabilized demand from the consumer end, resulting in a slight uptrend in the Phenol prices. The use of Phenol as a surgical antiseptic and disinfectant had risen during the 2020 COVID situation, leading to the increased requirement for the product. In contrast, the higher demand during the first outbreak of COVID led to improved product production and high import activities; thus, it boosted the product's availability in the domestic market.
Later the crisis caused by Russia's invasion over Ukraine inflicted the raw material values. The tight supply of the upstream crude has been inflicting the derivative benzene, propylene, and cumene, which is the primary raw material utilized in the production of Phenol. Hence, following the rising feedstock values, the price of Phenol rose by approximately 1 per cent from 13th June to 16th June.
However, the limited supply of the product from South Korea is due to the disrupted trade activities. The strike conducted by the South Korean truckers over the past 8 days caused the delay in the exportation of the products, imposing the Phenol price trend to climb up.
When interviewed, one of the China based traders informed that the new lockdown restrictions in Shanghai after the outbreak of increasing COVID cases in Beijing and the tight supply from South Korea are pushing up the Phenol pricing.
According to ChemAnalyst, "Phenol pricing is expected to rise in the coming weeks, with increasing demand from the domestic market. The increased production of downstream derivative phenolic resin is expected to boost the Phenol market. Also, a high requirement is expected from the plastic and cosmetic sectors, which might further increase the Phenol price trend."