Is Thailand set to lead Phenol imports to India? – 16 Jun 2014

On 16th May 2014, the Indian Government imposed Anti- Dumping Duty (ADD) of Phenol from Taiwan and US to India. Since the past two years both these countries have dominated imports of Phenol into the country. However with the levy of latest ADD, market participants anticipate Thailand and South Korea to lead Phenol imports to India. Recently, the price of Phenol has escalated in the Indian markets on various accounts, this review takes a quick look at the current market sentiment for Phenol in the country and examines the likelihood of Thailand to lead Phenol imports into India.

The website gathers from its price database, the price of Phenol was more or less stable at levels of Rs. 100-103 per kg during May, 2014, but after the imposition of ADD on Phenol the price dropped to levels of Rs.99-97.5 per kg, all prices are exclusive of all taxes. It’s understood that the price declined as a consequence of the appreciating rupee and dull demand.

“Most traders had ample stocks of Phenol around that time but due to moderate demand and appreciating rupee, the bulk prices declined”, a Ahmedabad trader informed the website.

Its assimilated that as a result of ADD and a lull in demand, most importers curtailed their import shipments for Phenol. Resultantly, over a period of few weeks, the markets have witnessed a surge in price due to short supply of imports.

“Ever since ADD, no offers have been coming from the US and South Korea. Presently import offers from South Korea are at $ 1,530-1,535  per metric tonne while offers from Thailand are priced higher at $ 1,550 per metic tonne. But as there is an extra 2% duty on imports from Korea, most importers prefer importing from Thailand”, a prominent Mumbai based trader informed the website.

It’s understood that no import shipments for Phenol are expected to arrive this month and most shipments are expected to reach India by July or beginning of August.

Hence, its expected that the price of Phenol will remain on the higher range this month, primarily due to short supply. Also, the website understands that higher upstream cost for Cumene is supporting high cost of Phenol internationally.

Taking advantage of this situation, Herdillia has conducted an upward price revision by Rs. 5 per kg to Rs. 112 per kg (exclusive of all taxes) on 16^th June, 2014.

Presently, Phenol trades at Rs 112 per kg (exclusive of all taxes) Ex Kandla. Strong demand from plywood laminate industry is noted for the chemical but in the future it will be interesting to note if Thailand will lead Phenol imports into the country or not. An industry source informed the website that HOCL is already filing for ADD investigations for Phenol imports from South Korea. If successful, then Thailand is most likely set to lead Phenol imports into the country.