There has been continuous rise in Phenol prices since last few weeks on back of tightened supply as many turnaround are observed. Major producer Sinopec increased its domestic offers for phenol in east China on 6 August by yuan (CNY)400/tonne ($59/tonne) to 9,800/tonne, in line with an increase in phenol spot prices in the market.
Harbin Bluestar, Huizhou Zhongxin Chemical and Sinopec Mitsui either have launched or plan to launch maintenance at their phenol/acetone unit in August leading to weakened supply of Phenol to some extent.
Prices for upstream Benzene has also remained firm in the China market. Market participants believe that benzene demand will likely pick up further, on the back of high operating rates of downstream SM plants giving support to benzene prices.
This would mean higher costs for phenol makers, which would support higher values of the material.
