Week demand in the domestic market forces Phenol prices to taper off – 3 Dec 2014

SI group issued its new pricing for the month of December last evening. The group revised its Phenol price to Rs.93 per kg which was a straight Rs.7 per kg decline from its previous ex-work price.

Phenol booking price have gonedown by around 175 dollar during the last two months. Prevailing booking price of Phenol is around $1225/MT. Indianpetrochem assimilated that depreciating crude oil prices have suppressed the demand for Phenol in the market. Product stocks are available with the traders but since the demand has dipped quite substantially, it has become difficult for them to dispose of the current inventory.Manufacturers andimporters are now trying to keep the inventory as low as possible in order to keep a check on the operatingcosts. According to our sources, currentPhenol stocks lying at kandla port is around 8483MT.

If we comparethe demand trend of Phenol from last year to this year, demand has fallen by manifold. Generally, there is a strong demand for Phenol duringthe end of theyear but due to unforeseen price variations, end users are avoiding bulk purchases.

An official from SI group informed the website that “ We will not reduce the price further, at least till the mid of this month.Phenol manufactured by SI group is of better quality than the imported phenol so we have good gripping of phenol buyers in India.”

He further addedthat phenol demand is expected togain momentum in the first week of January. Phenol price at Ex-Kandla were last recorded asRs.86 per kg.