For the Quarter Ending December 2021
North America
In the quarter ending December, North America witnessed a continuous decline in demand amidst the appreciable improvement in the supply of Phenol. After the Ida hurricane in Q3, supply improved gradually with resumption in plant operations. Plant operating rates almost reached normally by Q4 leading to ample product availability. Seasonal slowdown in demand especially from the paints and coatings and automotive sector plummeted the demand for solvents in North America. Furthermore, export inquiries also remained low due inventory build-up in various countries. However, in late-December, inquiries again increased which stabilized the declining trajectory of Phenol in the regional market. Phenol FOB prices in USA were assessed at USD 1470 per MT in December.
Asia
During the quarter ending December, market sentiments of Phenol in India continued to drift post the festive season in October. Improved availability of Phenol in China after a long run of energy crisis eased its supply in the Indian market. In line with the diminishing margins, Hindustan Organics imposed a turnaround at its Phenol/Acetone plant in India in mid-November. Phenol prices witnessed a marginal surge due to the delayed restart of Hindustan Organics Phenol plant. However, its prices Phenol witnessed another astonishing drift in late-December in line with the weakness in international demand for the product. A renowned trader based in Mumbai revealed that as enquiries in India have remained stagnant, players have been implementing a negative revision in their prices in order to clear the inventories before the year ends. Amidst the narrowed demand, Phenol prices in India drifted to USD 1480 Ex-Dahej in December.
Europe
Phenol prices in Europe declined consistently in the last two month of the quarter ending December. Supply chain disruption and freight rates gradually eased entering Q4, however the energy crises in the regional led to higher plant operating cost. Even though manufacturing cost of Phenol/Acetone remained firm, fall in inquiries due to year end slowdown caused prolonged dullness in the demand pattern. Feeble demand and improved availability tumbled Phenol FD prices to USD 1725 per MT in December.
For the Quarter Ending September 2021
North America
The prices of Phenol remained firm and balanced during the third quarter of 2021 in North America. The industry reported improved demand and supply dynamics as production levels were nearing pre-storm levels. Q3 pricing for Phenol measured a significant dip as compared to Q2. Phenol pricing was last assessed between USD 1280/MT -1320/MT FOB Texas in August. Demand grew significantly in Q3 from the downstream Nylon, Epoxy Resin, and Polycarbonate production facilities as manufacturing sector picked up to match consumer sentiments. Better demand was observed from the automotive, building, and construction sectors throughout the quarter.
Asia Pacific
In Q3 of 2021, the overall market outlook for Phenol experienced mixed sentiments in the Asia Pacific region. The supply fundamentals of Phenol and its several derivatives remained under stress in Q3 as several plants based in Asia and Europe were heard going off-stream due to a host of challenges in operations. Supply from China remained restricted in September as operating rates were kept low in several plants in compliance with the government’s dual-energy norms. Demand remained stable in Q3 due to consistent offtakes from the downstream automotive and construction sectors. At times of snug global supply, Indian manufacturers were operating their plants at optimum efficiency to cater to strong demand during the third quarter. In India, the price of Phenol escalated from USD 1524/MT to USD 1608/MT in Q3 of 2021.
Europe
The price curve of Phenol in Europe witnessed a downward trajectory in the third quarter of 2021. The regional pricing of Phenol fell on the back of a slump in the prices of upstream Benzene, at the same time ease in the supply of its feedstock caused Phenol to follow the downtrend in Q3 2021. FD Hamburg price dropped from USD 1710 to USD 1485 per MT from July to September.
For the Quarter Ending June 2021
North America
Overall Phenol market outlook in the North American region improved along with the recovery of the industrial infrastructure in the USA Gulf Coast during the second quarter of 2021. Phenol supplies picked up in the region, owing to the restarting of several production units with better operating rates and ample availability of the upstream Benzene. However, some producers were still struggling to operate the Phenol facilities at normal rates. Demand outlook strengthened as the enquiries were piled up from the downstream Nylon, Epoxy Resin and Polycarbonate production facilities. Despite a marked slowness in the automotive demand, the building and construction sectors remained the key demand drivers. The Phenol pricing trend in North American region eased during the second quarter of 2021, with FOB Texas discussion settling at USD 1635 per tonne in June.
Asia Pacific
Phenol market outlook in the Asia Pacific region observed mixed sentiments throughout the second quarter of 2021. Despite the devasting impact of the second COVID wave in several Indian states, the domestic Phenol market witnessed limited hinderance in the local supplies. Supplies in Northeast China were significantly curtailed due to the turnarounds at several producing facilities. South Korean Kumho P&B line 3 and Japan’s Mitsui Chemicals Phenol facility in Sakai were temporarily shut for planned maintenance during May and June. Demand in the China remained firm in Q2 owing to consistent offtakes from the downstream automotive and construction sector with strong economic revival. The pricing trend continued to maintain an uptrend, extending record surged in upstream Benzene pricing. Phenol FOB Dalian prices rose to USD 1555 per tonne levels in June.
Europe
During the second quarter of 2021, Phenol supplies in the European region were balanced to tight owing to turnarounds at several manufacturing facilities. Some ease in import supplies was witnessed due the improved inflows from the US. Demand observed a seasonal push from the construction sector, whereas enquiries from the downstream automotive sector showed marginal improvement in the second quarter. The prices of Phenol in the European market took an uptrend amidst the supply demand imbalance and global inflation in the prices of upstream Benzene. Progression of vaccination programs raised hopes of the quick revival in downstream sectors.
For the Quarter Ending March 2021
North America
During the first half of the quarter, Phenol supplies were severely impacted by the plant turnarounds as two upstream cumene plants went for turnarounds resulting in feedstock shortage. Due to the severe freeze weather conditions in the US gulf region, production outages further resulted in record spike in the prices of Phenol. Shutdown of US-based Olin Corp. in mid-February affected market supplies. The performance of housing sector drove the demand of Phenol, as an extensive infrastructure plan helped the non-residential sector growth. CFR Texas prices took a big hit in March, surging above USD 2570 per MT in the week ending 19th March. Some Phenol supplies was also directed to Europe amid tight global supply.
Asia-Pacific (APAC)
Phenol supplies in Asia Pacific, initially in the quarter improved as the several manufacturing plants ended their maintenance turnaround periods and started operating at their normal efficiencies. However, supplied remained tight for some weeks as some Chinese players curtailed operations during the Chinese Lunar Year. The demand remained high as market could see restocking practices in mid-March to fill the inventories, followed by resurgence consumption from the Phenolic Resin manufacturers. By-product Acetone remained high in demand. This high demand and normal supply pushed up the regional prices of Phenol. The quarterly average of the prices of Phenol in India stood around USD 1204/ton in the market, whereas the CFR prices for Q1 deliveries were assessed at USD 1016/ton.
Europe
The supplies of Phenol in the European region remained constrained in first half of Q1, as the several major plants were on a maintenance turnaround since last quarter, further carried by the slowdown in industrial and commercial activities due to slump in the economy of European region amid fresh lockdown imposed due to second wave of COVID. The demand however surged from the downstream sector, as the automotive sector slowly recovered in the region. Offtakes of Phenolic resins were good with rising demand from the construction sector which later fell toward the end of Q1.
For the Quarter Ending September 2020
Asia
Market sentiments of the Asian Phenol Market remained under doldrums pressurized by supply overhang due to massive capacity additions of 400 KTPA from China’s Zhejiang Petrochemicals. The situation was exacerbated by the resumption of operations in Japan’s Osaka-based Mitsui Chemicals and Chung Chun PC of China followed with no news of any new turnarounds till the end of next quarter. Furthermore, manufacturers across the Northern Asia operated their plants at nearly full capacities but the inventories of the products remained manageable with strong offtakes for certain derivatives.
Europe
Even after production from several major manufacturers was curtailed to curb supply overhang, the market witnessed surplus cargoes of Phenol as downstream industries made no prominent gains. Although two of the renowned producers Domo Caproleuna and Seqens underwent a maintenance turnaround but it was not enough to revive the dull offtakes of Phenol in the European market. As resurgence of Coronavirus continued to impact the automotive sector, demand for its major derivatives Bisphenol A and Caprolactam remained dampened with low hopes of recovery by the next quarter.
North America
Phenol market outlook in North America remained balanced as turnarounds implemented from leading producers like SABIC and Shell, outstripped the excess supply. Since Asia was already flooded with Phenol supply after massive capacity additions from China, export potential of North America reduced to a significant percentage with diminished demand from its major consumers. Although several downstream sectors like automotive and construction showcased promising hopes of recovery, players were cautious over prevailing demand uncertainties on consistent rise in coronavirus number in some parts of the region.
