Phenolic resin prices stayed unchanged in Asia and Europe during mid-May 2025, as supply was enough to meet the limited demand from coating, adhesives, and circuit board industries. Although, in the U.S., Phenolic Resin prices rose slightly thanks to stronger buying in automotive applications.

In China, Phenolic Resin production gradually resumed after the extended Golden Week and Labor Day holidays, improving supply across the region. Plants resumed operations following maintenance, leading to adequate inventory levels. However, Phenolic Resin demand in downstream industries stayed soft amid slowdown in the end user construction sector, with buyers fulfilling only essential requirements amid weak construction activity.

China’s construction market continued to show signs of strain similar to April, with new home sales by the top 100 developers continue to fall. This slowdown in development limited the Phenolic Resin demand in infrastructure and housing-linked applications.  To add to this, the export orders also weakened due to ongoing U.S. tariff tensions. Manufacturers reported slow circulation of goods and maintained a cautious production outlook.

Further, the prices of feedstock phenol and formaldehyde were also lower, resulting in eased production costs for Phenolic Resin.  Primarily, Phenol was particularly under pressure due to falling upstream crude oil prices. Although operating rates at phenol plants were around 75%, bearishness and narrow profit margins dissuaded any raucous production hike. As a cascading effect, market sentiment was stale, with few spot deals and low buying confidence.

Furthermore, the exports in South Korea decline further, based mainly on increasing U.S. trade pressures. The economy contracted year-over-year. Political instability and increased raw material costs frightened investors, causing construction hold-ups and lower Phenolic Resin demand.

In like manner , in the European market, the Phenolic Resin prices were stable as demand from major industries such as coatings, adhesives, and circuit boards remained weak. Building activity in housing and commercial properties was sluggish, and most chemical producers were operating at low levels of capacity. Buyers tended to hold on to small short-term purchases instead of making large orders.

At the same time, in the United States, Phenolic Resin prices increased marginally on account of firm end-user automobile demand. Applications like clutch components, brake pads, and ignition systems experienced better activity. Yet construction-tied demand like coatings, adhesives, and circuit boards was weak. High mortgage rates and high cost of homes curbed new home building, with building permits declining on both month-to-month and year-on-year basis.

According to Chemanalyst, Phenolic Resin prices may continue to  remain under pressure in the near term. High inventory levels, subdued construction activity, and limited new orders in key downstream sectors owing to persistent economic uncertainties globally are expected to restrain demand and cap any major price rebound going forward.