Quarterly Update on Global Phenol Market
For the Quarter Ending September 2020
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.
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.
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.
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Company-wise installed capacity, production volume and plant operating efficiency is captured directly from manufacturers. Import and Export volume is captured from government sources and demand for Phenol is calculated considering the production, import, export and inventory-levels on the country and regional level markets.
Phenol price is correlated with the price trend of its feedstock Benzene, and with that of its derivatives such as Bisphenol A, Phenolic Resin, Caprolactam etc.
Basic details and information on financial performance of leading global players in Phenol market is presented in a visually captivating manner. Expansion plans and the company’s strategy is also captured to understand the vision and mission of the company to help understand the areas where companies need to focus more.
News & Deals
Daily updates on industry-specific and product-specific news, exclusive primary-based news capturing plant shutdowns/outages/closures, capacity expansions, operating rates, insights on demand-supply situation, awarding of technology licenses, new product launch and deals specifying mergers and acquisitions, strategic investments and disinvestments, to help players capitalize on market opportunity.
ChemAnalyst gathers information through primary research surveys conducted with various Phenol manufacturers, spread across domestic and international market, suppliers and dealers/distributors to gain insights into value-chains and demand-supply scenario to assess the market situation. Thorough study of company’s annual reports and secondary sources such as exhaustive search on credible paid databases, including our internal database is done to verify the information. All the collected information is analyzed, evaluated and presented in chronological order to depict a meaningful and clear picture of the concerned market.
Our dedicated team of industry experts comprehensively monitors and analyzes various aspects of the Global Phenol market. The team analyzes various industrial segments, strategic viewpoints and provides an analysis of the industry’s performance in the long run. This would enable our clients in efficiently plan their future investments, mitigate risk, understand the cost dynamics and strike out a balance amidst market volatility.
Critical examination of the impact of COVID-19 pandemic on the global supply chains and shift in demand patterns with change in buying behavior of consumers across the globe.
Several ongoing development projects across industries are tracked, followed by the details of major projects in the development stage, which can positively or negatively influence Global Phenol market.
Pricing is captured through exhaustive primary interviews with domestic and international manufacturers, traders and importers and customers on daily, weekly, monthly and yearly basis.
Finally, region-specific markets for Phenol are analyzed and region-wise demand pattern is tracked.
Phenol is a colorless organic derivative of Benzene, that can be produced via various routes and synthesized as a highly demanded petrochemical. The most common process for manufacturing Phenol is via Cumene Route. In this process, Cumene is obtained using Benzene and Propylene which is further oxidized to yield Hydroperoxide that is finally subjected to acid catalysis to form Phenol/Acetone. Phenol can be categorized as monohydric, dihydric and polyhydric based upon the number of hydroxyl groups attached to it. Though concentrated Phenol is toxic in nature, its very diluted form can be used as a disinfectant in household cleaning products and mouthwash. As a chemical feedstock, Phenol is predominately utilized to produce a high valued derivative, Bisphenol A which is majorly consumed for producing remarkable plastics like epoxy resins and polycarbonates. The product also finds large-scale consumption to produce derivatives like Phenolic Resin and Caprolactam, two products finding enormous applications in the construction and polyester industry.