Phenol prices in the U.S., Germany, and China had mixed movements during the week of July 4, 2025. The U.S. market was firm with even supply and demand, aided by consistent contract activity. In Europe, the prices fell because of poor end-user demand, full inventories, and aggressive imports, whereas acetone had seasonal assistance. China had a brief price rise followed by a fall when supply increased and demand remained weak. Generally, world phenol markets are under pressure from oversupply and conservative downstream buying habits.
Phenol prices in key global markets like the U.S., Germany, and China had a mixed undertone in the week up to July 4, 2025. Though regional fundamentals were instrumental in driving trends, collective pressures like weak demand from downstream industries and market volatility for feedstocks persisted and influenced pricing trends. Various regions exhibited divergent trends in line with domestic supply-demand balances, import trends, and seasonal factory activity.
In the US, phenol prices were mostly unchanged across the week. Market activity remained slow, with most deals being made under long-term agreements. Spot trading was weak, and producers cited no material changes in production or transportation. Feedstock benzene prices were weakly moved, only providing modest scope for cost-driven adjustments in phenol prices. Demand from downstream consumers, such as BPA, caprolactam, and resins, was steady but relatively subdued, providing only partial support for the gains in price. Exports also were soft, particularly to Europe and Asia, due to currency exchange problems and adequate availability locally in those markets that made U.S. cargoes less competitive. Still, the lack of import pressure locally has prevented any slide in price.
In the European market, Phenol prices dropped due to weak demand, excessive buyer inventories, and greater supply of competitively priced Asian and Middle Eastern imports. Even with lower operating rates at some European phenol plants owing to balance of payments headaches, total supply was adequate owing to ongoing production and good access to feedstock cumene. Demand for major derivatives like BPA, caprolactam, and resins remained tepid, particularly as the construction and automotive industries kept lagging.
Phenol prices in China first increased in early June before declining later in the month. The prices were briefly pushed up by higher benzene costs and price increases led by traders. End-user demand fell short of expectations, leading to a correction at the end of the month. The sharp drop in crude oil prices in mid-June dented benzene values, in turn, pulling down phenol prices. On the supply side, some production units came back on-stream following maintenance shutdowns, driving overall domestic availability higher. Though port inventory stress was weak, the impending restarts and anticipated lift in monthly production indicated potential oversupply. Downstream consumption, especially in phenolic resins, was weak, indicating cautious sentiment with scope for additional price weakness.
In the future, the international phenol market will continue to be weighed down by excess supply and lackluster demand. Localized influences like freight rates and regional maintenance programs might provide short-term support, but the overall direction can still be bearish unless a significant turnaround in end-market demand takes place. Investors continue to keep a close eye on crude oil and benzene price trends, which strongly impact Phenol cost levels and sentiment in all three markets.
