For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, the Phenolic Resins market in the North American region has persisted on a bearish trajectory. These developments have been majorly attributed to the muted inquiries for Phenolic resins from the overseas market for the majority of the period during the quarter. However, the market dynamics were pressurized during December as the complete embargo on Russian energy supplies coupled with the soar in demand from the Asian market during the second half of December. In addition, several upstream facilities took precautionary measures by reducing or suspending the operating rates at the facilities amidst the extreme weather conditions in the US, as it disrupted the power and transportation facilities across the US. As a ripple effect, the FOB Louisiana discussions for Novalac Phenolic Resins were assessed at USD 5324 per tonne in December 2022.
Asia Pacific
Overall the Asia Pacific market for Phenolic Resins has remained bearish throughout the fourth quarter of 2022. This development has been majorly attributed to the rising inflation globally, which is further coupled with the lack of demand in the region. Prominent importing markets such as China were operating their downstream facilities in lower loads at the sites due to the COVID restrictions. At the same time, the consistent imports of Russian Crude supplies by India and China have somewhat restricted the cost support from the feedstocks and upstream commodities. As a ripple effect, the FOB Qingdao discussions for Phenolic Resins (Powder) were assessed at USD 2105 per tonne in December 2022.
Europe
Overall the Phenolic resins market in Europe observed a mixed sentiment during the fourth quarter of 2022. The market witnessed slight growth early during the fourth quarter as the market activities resumed after the long summer holidays. However, the market sentiments plunged due to the hiked interest rates and double-digit growth in inflation. This market trend has been majorly attributed to the lack of market competitiveness amongst the European players, low operating rates, and intervention of the overseas players have kept the European polymers market depressed. However, the soaring energy cost has levied a substantial impact on the operating rates at manufacturing facilities across Europe. As a ripple effect, the CFR Rotterdam discussions for Novolac Phenolic Resins were assessed at USD 5710 per tonne in December 2022. Meanwhile, declining freight charges resulted in an increase in Asian exports on European shores.
For the Quarter Ending September 2022
North America
Phenolic resin prices have continued to fall in the North American region, throughout the third quarter of 2022, due to sufficient inventory level coupled with bearish demand from the downstream adhesives and coating and other industries. Despite this, feedstock Phenol and Formaldehyde prices fluctuated in the regional market. On the other side, supply dynamics remained under pressure as the key exporting port of Houston witnessed port congestion that limited the material available in the overseas market. Although, gloomy demand from the European nations and Asian countries resulted in the restricted effect of constrained supply on the overall prices of Phenolic resin. Phenolic Resin FOB Louisiana Prices were assessed at USD 5490/MT during September 2022.
Asia- Pacific
Prices of Phenolic resin showed mixed sentiments in the Chinese domestic market during the third quarter of 2022. During July and August, Phenolic resin declined as the cost pressure remained weak while demand dynamics from downstream industries declined. China’s battle with Covid in Q3 2022 as the market activities remained under constant threat of covid related disruptions. Also port activities were also halted due to the resurgence in covid cases across the region. However, during September, prices increased by 1.7%, supported by the high cost of production. Feedstock Phenol prices have rebounded. On the other hand, the demand from domestic and overseas markets has slightly revived. Procurements were raised ahead of the National holidays in October. Hence, prices of Phenolic resin FOB Qingdao were settled at USD 2248/MT during September 2022.
Europe
During the third quarter of 2022, Phenolic resin prices have gained a downward trend in the European market due to the ease in the feedstock Phenol prices. Furthermore, since the beginning of the Russia- Ukraine war, the European nation has faced strong headwinds due to the crunch in natural gas supply. The limited natural gas supply has imposed downside risks on the manufacturing capacities of the downstream industries. In addition, domestic production costs remain high amid mounting energy and operating costs, resulting in weak output rates. However, cheaper imports from Asian countries caused the Phenolic resin to drop in the regional market. Demand from the downstream coating and adhesives has been sluggish amid high inflation rates; hence, as a result, prices of Phenolic resin were assessed at USD 5800/MT during September 2022.
For the Quarter Ending June 2022
North America
Phenolic Resin followed a fluctuation in the US domestic market for the quarter ending June 2022. Initially, the price dropped following the negative price trend of its upstream phenol. Moreover, the demand for the product fell due to the poor requirement from the end-use automotive, construction, and electronic sectors. Later the values of Phenolic Resin increased as the price of exported cargoes rose. Also, the interest rate hike by the Federal reserves has inflated the Phenolic Resin pricing in the US market. Therefore, the increasing demand from the regional markets and the high freight charges have resulted in an uptrend in Phenolic Resin pricing.
APAC
During the second quarter of 2022, the price of Phenolic Resin in the Indian market witnessed an oscillating trend. The factor supporting the up and down price movement of Phenolic Resin in Q2 is the fluctuating demand in the domestic market. At the beginning of Q2, the price of Phenolic Resin dropped due to the fall in imported cargoes value as the purchasing was poor from the domestic market. Later, the prices witnessed a marginal rise during the mid and end of the second quarter. The cost of imported cargoes rose as the purchasing activities rose slightly. The demand for the product from the downstream coating, laminating, construction, and automotive sectors increased, which influenced the Phenolic Resin market.
Europe
In the second quarter of 2022, Phenolic Resin prices showcased a mixed sentiment. Due to supply chain disruptions that prevented resin exports from Germany, Phenolic resin prices in Germany increased in May. As a result, traders and distributors have been forced to turn to distress selling on the domestic market to reduce their inventories. Due to ongoing congestion at key container terminals in China and Southeast Asian countries, export demand from East Asia was negatively impacted. Additionally, European ports' lack of ship space hampered the lucrative Indo-Pacific trade arbitrage from late April to early May. By the second week of May, the supply chain disruption brought on by the ongoing conflict in eastern Europe and the decongestion at Asian ports had gradually begun to fade. Thus, both the European and Asian markets' demand began to increase. Given that Russia's methanol shipments have been suspended for the past two months due to western sanctions against Russia, feedstock formaldehyde prices have also increased.
For the Quarter Ending March 2022
North America
Prices of Phenolic Resin observed an upward trajectory in the first quarter of 2022 in North America owing to the limited availability of feedstock Phenol amidst its appreciable demand. Phenolic Resin prices were observed at USD 4320/ton CFR New York in USA in the beginning of the quarter. However, in late December, owing to the low manufacturing of automobiles due to semiconductor shortage and Phenolic Resin demand, Phenolic Resin witnessed a gradual slowdown in demand. Besides, the meagre supply of the product to meet the demands of the downstream industries such as automobiles, building & construction, and electronics, the market sentiments remained high throughout the quarter.
Asia Pacific
Taking pressure from domestic raw material costs amid solid demand from the domestic market, prices of Phenolic Resin rose significantly during the first quarter in India. An overall increase of 3.1% was seen in Q1 in India. A consistent surge in the prices of Phenolic Resins was observed during the first quarter of 2022, supported by the steep rise in its demand in the post-pandemic period. Orders from the downstream adhesives, coatings, and oil well proppants industry were healthy and stable throughout the first quarter as the rebound of those sectors boosted the Phenolic Resin industry. Cost of Phenolic Resin was assessed at USD 2100/ton FOB Qingdao in January in China.
Europe
In Europe, prices of Phenolic Resin surged upwards in Q1 2022 due to the robust demand from the region and the overseas market and the sudden surge in the energy values. Phenolic resin prices were witnessed at USD 3680/ton FOB Hamburg. Moreover, spiralling merchandise charges and constraint availability of the shipping containers restrictions sent ripples to the cost of Phenolic Resins in the European region during this time frame. Demand from downstream segments observed a seasonal hike, as inquiries from the downstream adhesives and coating production facilities and the automotive industry improved throughout the first quarter.
For the Quarter Ending December 2021
North America
In North America, prices of Phenolic Resins remained mixed owing to the increase in the availability of feedstock Phenol amidst its appreciable demand. Prices of feedstock Phenol were assessed at USD 1470 per MT in December. However, in late December owing to low manufacturing of automotive due to semiconductor shortage and Phenolic Resin demand witnessed a gradual slowdown in the demand. Export demand for Phenolic Resins also declined for the same reason which led to significant decline in the regional export revenue.
Asia Pacific
Taking pressure from domestic raw material cost amid stable to firm demand from the domestic market, Phenolic resin rose significantly during the month of October in India. Despite of the fact that feedstock Phenol prices have been declining consistently since the first week of October, traders claimed that they received high queries for phenolic resins in the meantime. However, post the festive season, demand for Phenolic resin witnessed an appreciable decline with prices falling to USD 5783 per MT in December. Furthermore, consistent fall in prices of feedstock Phenol also assisted in the prolong dullness in its prices.
Europe
Phenolic Resins market showcased mixed sentiments in Q4 2021 in the European region. In first half of Q4, marginal rise in the cost of Phenolic Resin was witnessed due to the robust demand from the regional and the overseas market and sudden rise in the energy values. However, by mid-November, a slump in the prices of Phenolic resin was witnessed owing to the ample availability of the product. Moreover, ease in freight charges and high availability of feedstock kept Phenolic prices at ease in Q4.
For the Quarter Ending September 2021
North America
In North America, prices of Phenolic Resins remained balanced backed by the stability in the feedstock phenol values during the third quarter of 2021. Besides, ample supply of the product to meet the demands of the downstream industries such as automobile, building & construction and the electronics kept the market sentiments high throughout the quarter. However, arrival of the hurricane Ida in August end in the Gulf Coast of the US impacted the production and the supply chains in the region that led to the marginal hike in its prices in September. However, after several weeks, Phenolic resins prices gained their stability back with the resumption in the industrial operation in post hurricane period.
Asia Pacific
In Q3 of 2021, Phenolic Resins market outlook experienced an upward rally in the Asia Pacific region. A consistent upward trajectory in the prices of Phenolic Resins was observed during this quarter supported by the steep rise in its demand in the post pandemic period. However, in the latter part of the quarter, Phenolic Resins prices attained stability after witnessing consistent increment for more than three months. In India, Phenolic Resins market outlook appeared bullish with robust demand from the downstream industries and tight fundamentals that kept the prices in upward trend during this quarter. In addition, soaring raw materials prices also remained a major concern for resins manufacturers which compelled them to revise their prices to maintain their profit margin. Consequently, Phenolic Resin (novolac resin) CFR-Chennai prices hovered around USD 6770.68 per MT in September.
Europe
During Q3 of 2021, in the European region Phenolic Resins market showcased mixed sentiments. At the beginning of the quarter, a slump in the prices of Phenolic resin was witnessed owing to the ample availability of the product and drop in the values of upstream. However, in the latter half, marginal rise in the cost of Phenolic Resin was seen due to the robust demand from the regional and the overseas market and sudden rise in the prices of upstream Phenol and Formaldehyde during this quarter. Moreover, spiraling freight charges and constraint availability of the shipping containers further sent ripples to the values of Phenolic Resins in the European region during this time frame.
For the Quarter Ending June 2021
North America
Overall market outlook in the North American region improved following the recovery of the industrial infrastructure in the US Gulf Coast during the second quarter of 2021. Supply improved in the region, owing to the restart of several refineries with better availability of upstream Benzene. However, couple of producers struggled to operate Phenol facilities in normal rates. A major producer of Phenolic resins Hexion closed sales of Phenolic Resins in late April, as handed over its business to Black Diamond to reduce the debt. Demand surged in the second quarter as the intakes from the adhesives and coating industries remained constant amidst the seasonal hike from the building and construction sector. As a ripple effect, prices continuously strengthened with FOB Texas discussions reaching USD 2870 per tonne in June.
Asia Pacific
Asia Pacific region observed mixed sentiments in the second quarter of 2021. In Northeast Asia and China, the supply of feedstock Phenol remained pressurized due to the turnarounds in several Phenol manufacturing facilities across the regions, including South Korean Kumho P&B line 3 and Japan’s Mitsui Chemicals Phenol facility in Sakai in May and June. Demand in the Asia Pacific remained balanced throughout the quarter, owing to the consistent offtakes from downstream adhesives and coating industries. Till May prices of Phenolic resins were on a up stride with support of imposed taxes on imported heavy aromatics commodities. Although the pricing trend declined in June with Ex-Work Jiangyin prices in June being assessed at USD 1994 per tonne.
Europe
During the second quarter of 2021, supplies in the European region were balanced to tight owing to the turnarounds in several manufacturing facilities across Europe. Further the ease in availability was witnessed due the improvement in imported volumes from the US. Demand observed a seasonal hike from the construction sector, whereas enquiries from the downstream adhesives and coating production facilities and from the automotive sector improved throughout the second quarter.
For the Quarter Ending March 2021
North America
During the first quarter of 2021, Phenolic Resin supplies in the North American region were tight due to the unprecedented freeze weather conditions in the US Gulf region which led to several plant outages. In March, Hexion Inc. announced intent to expand its Portland Oregon site as the first automated production line will come online at the end of first quarter of 2021. The demand however surged amid widening supply-demand gap widened due to halted production of Phenol at several facilities in US.
Asia-Pacific (APAC)
The supply of Phenolic Resins during the first quarter remained firm in Asia, due to sufficient availability of the feedstocks as major regional players ended their turnaround in H1 of the first quarter. India’s state-owned Assam Petrochemicals commissioned the Phenol-Formaldehyde plant in January. Hexion’s Phenolic Resins plant in Zhenjiang’s province was sold to Red Avenue New Materials Group Co Ltd, a Chinese company dealing in new materials for electronics, environmental protection, tire, and auto markets. The demand remained balanced as the buyers went for spot offtakes to avoid surplus inventories, amid fluctuating consumptions from the downstream sector. The average price of Phenolic resins in the Indian market was estimated around USD 1207/ton throughout the quarter.
Europe
The supplies in Europe region market improved as a major feedstock plant restarted after turnaround with prolonged shutdown of the feedstock Phenol manufacturers in the US, which fulfilled the availability of feedstock from the downstream adhesives sector. Towards the end of the quarter, the demand remained affected due to reduced offtakes from downstream sectors amidst lockdown restrictions imposed in several countries.
For the Quarter Ending December 2020
Asia-Pacific (APAC)
The consumption of Phenolic Resin witnessed an uptrend in H1 of Q4 2020, since the cruciality of adhesives and coatings in the automobile sector cultivated surge in consumption of Phenolic Resins throughout the quarter. In the other half of fourth quarter, several producers were cutting the production rates of feedstock phenol, fearing slump in its value amid the upturn of COVID-19 in some regions. Demand from the downstream industry was healthy and stable throughout the quarter as the rebound of the construction and automobile sector boosted the Phenolic Resin Industry. In India, the rebound of major downstream industries resulted in slight increment in the price curve of Phenol Resins, which maintained an average price of USD 1626 per tonne in Q4 2020.
Europe
The supplies of Phenolic Resins remained stable throughout the fourth quarter. The rebound of construction and automotive sector significantly impacted the consumption of Phenolic Resins during the quarter. Production cuts on the feedstock front at several major plants due to turnarounds and spread of new COVID strain resulted in reduced supply. In first half of the quarter, demand surged as the automobile and construction sector gained momentum as major economies across Europe eased restrictions. But moving into the later half, another lockdown imposed across several parts in Europe hampered the overall sales figure.
North America
The supplies of Phenolic Resins were balanced in the H1 of Q4, due to turnarounds at the upstream Phenol units. The demand of Phenolic Resins showed continuously inclination, due to rebound of the automobile and construction sector. Paints and coating industry performed well due to increment in construction activities, thereby paving the way for surge in overseas shipments. Players were on massive strategic investments to recover the pandemic induced losses. Columbus based thermoset resin giant Hexion Inc. announced a definitive agreement to sell its Phenolic Specialty Resin and other resins product segment to Black Diamond and Investindustrial worth approximately USD 425 million in the beginning of the quarter.
