Short supply spikes Phenol prices – 4 Aug 2014

There is major short supply of Phenol across various trading hubs in India, Indianpetrochem gathers from a number of market participants. Consequentially, the bulk price of Phenol ex- Kandla, have leaped from trading range of Rs. 115-116 per kg to current levels of Rs. 128-130 per kg.

On similar grounds, Herdilia, which is the only manufacturer in India with active manufacturing facility for Phenol, conducted an upward price revision for the chemical by Rs. 6 per kg to Rs. 125 per kg on 1st August, 2014.

Its understood that the demand for Phenol is strong from end -users industries, however the short supply situation has hiked prices significantly over a short time duration.

A Mumbai based trader reported, "There is limited domestic stock of Phenol in the market and major consignments (import) is expected to hit Indian shores by second half of next week. Meanwhile, the importers are currently selling the chemical at Rs. 128 per kg while brokers are trading at Rs. 129 per kg."

It is expected that prices will move down to normal trading range once fresh Phenol imports flood the market, in the interim, the prices are expected to be inflated.