RIM Market News >  Asian Viewpoints

Phenol market trend in China

2019/06/28 12:00

In China, the phenol (PH) market recently rebounded as the Ministry of Commerce of China decided to impose anti-dumping tax on imported PH from the US, Europe, South Korea, Japan and Thailand, the markets for benzene and propylene feedstocks remained firm, and traders with few available cargoes were reluctant to sell.

Market sources say that the import volume of PH has been declining in the past few years in China. Therefore, the anti-dumping tax has a limited impact on the market. The rise of feedstock prices, however, would greatly raise costs.

For benzene feedstock, supply from the US is tight. On the other hand, since the arbitrage between Asia and the US is open, the benzene market for FOB South Korea remained firm. Because of this, petrochemical producers in China raised sales prices of benzene. For propylene, demand for derivatives increased and prices gained, which pushed up production costs of PH.

Some players forecast that the sales prices of China Petroleum & Chemical Corp (Sinopec) might have an impact on the market in the future. In case Sinopec raises sales prices again, sentiment might strengthen and the market might further rise. But since PH production facilities are operating at high rates and inventories at ports are building, there is a supply glut in the market. Meanwhile, demand for derivatives is weak and turnaround is carried out for some bisphenol facilities. Under such circumstances, some market players also anticipate that the PH market would unlikely surge.

Tokyo : Energy Desk  Kin Setsubai  +81-3-3552-2411
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