Phenol Price Moves Southward in India on Weak Demand, Stock Build Up – 21 Oct 2014

Demand for Phenol is weakening in Indian markets on account of production activities waning due to the ensuing Diwali festival in the country. Price of the chemical is also following a downward trend primarily due to the spread between the key feedstock--Benzene and Crude Oil--increasing in the preceding days. Moreover, availability of excessive stocks of the chemical in the country's markets also is contruibuting significantly to the price fall. Phenol is currently sold in Indian markets at around Rs 112-115 a kg, remarkably down from the prices of Rs 124-125 a kg, prevailed not long ago.

Likewise, Phenol prices are also declining in the neighboring Chinese markets. Prevalence of weak demand in that country, coupled with presence of excessive stocks, are responsible for the southward movement in the prices. Sources in that country informed that bulk imports of the chemical from the US, priced relatively cheaper than the domestic variants, resulted in the prices moderating in that country's markets. The source further informed that approximately 127,900 tonne of Phenol was imported into China during the January-July 2014 period. Phenol prices in Chinese markets have declined by approximately $280-300 per MT to around $1730 per MT, and there is room for further decline, according to the source.