Prices of Acetone and Phenol Propelled Two Week High as Trade Disrupts from China
Deepak Phenolics, leading manufacturer of Phenol and Acetone in India, surged the prices of its prime products owing to tightened supply from China. Deepak Phenolics is Asia’s renowned manufacturer of Acetone and Phenol with plant capacity of 120000 MTPA and 200000 MTPA respectively. Weakened trade from China is perceived to be a silver lining for the company, as due to persistent demand and restricted supply Deepak Phenolics was opportunistic to plunge the prices in order to boost its profitability. Weak trade dynamics from China was formerly due to Lunar Holidays which was further exacerbated as knock-on effect of Coronavirus outbreak. The company surged the prices of its major products Acetone and Phenol for two consecutive weeks by around 3 per cent per week. Henceforth, prices of Acetone Ex-depot Kandla were assessed at INR 68000 per MT and Phenol prices were assessed at INR 75000 Ex-depot Kandla per MT in the second week of February. Moreover, supply from China is anticipated to take at least a week more to come back to its usual pace.