The demand for phenol has been weak this week while the market price for the chemical has been trading at a lower range since the beginning of this month in Mumbai . Indianpetrochem reviewed the current market scenario and spoke to some traders to get a comprehensive view on this matter.
After speaking to some traders, the website understood that there is weak demand for phenol in the market as the demand from main end-users industries for the chemicals, mainly manufacturers of bisphenol-A and phenolic resins, has been sluggish in the market. A trader told Indianpetrochem, that previously there was supply shortage in the market, but since the beginning of this month there has been a surge in supply in the Indian market, hence, the decline in market prices.
The website also spoke to an importer and understood that the price of imported Phenol (from Korea ) dropped over the past few weeks from levels of $1530-1550 per tonne to current range of $1520-1540 per tonne, basic price for bulk purchases.
In line with the current market trend, Herdillia revised its ex-factory price from Rs.116 to Rs.113 per kg this week.
Imported phenol currently sells at around Rs.116-117 per kg (exclusive of VAT and CVD) while domestic phenol sells for Rs. 120 per kg (exclusive of VAT and Excise) in the Mumbai market.
There are two domestic manufacturers for phenol: Herdillia and HOCL. However, HOCL's plant hasn't been operational since the past four month due to ongoing maintenance work, according to company sources; furthermore, the company denied to give comments on the timeframe it will resume operations. Meanwhile, according to some industrial sources, Herdillia resumed full-scale operations for phenol since the 4th of this month. Herdiallia uses 60% the phenol it manufactures to produce phenol derivatives like phenolic resins etc, hence, approximately 40% of the phenol manufactured by the company is sold in the open market.
Overall, the market sentiment on the price outlook is torn between traders who think that the slump in demand will help maintain current levels till the end of this month, and the other set of traders feel that the chemical is undervalued at current levels and a price correction should take place by the end of the month.
By Ntasha Berry
ntasha.berry@indianpetro.com
After speaking to some traders, the website understood that there is weak demand for phenol in the market as the demand from main end-users industries for the chemicals, mainly manufacturers of bisphenol-A and phenolic resins, has been sluggish in the market. A trader told Indianpetrochem, that previously there was supply shortage in the market, but since the beginning of this month there has been a surge in supply in the Indian market, hence, the decline in market prices.
The website also spoke to an importer and understood that the price of imported Phenol (from Korea ) dropped over the past few weeks from levels of $1530-1550 per tonne to current range of $1520-1540 per tonne, basic price for bulk purchases.
In line with the current market trend, Herdillia revised its ex-factory price from Rs.116 to Rs.113 per kg this week.
Imported phenol currently sells at around Rs.116-117 per kg (exclusive of VAT and CVD) while domestic phenol sells for Rs. 120 per kg (exclusive of VAT and Excise) in the Mumbai market.
There are two domestic manufacturers for phenol: Herdillia and HOCL. However, HOCL's plant hasn't been operational since the past four month due to ongoing maintenance work, according to company sources; furthermore, the company denied to give comments on the timeframe it will resume operations. Meanwhile, according to some industrial sources, Herdillia resumed full-scale operations for phenol since the 4th of this month. Herdiallia uses 60% the phenol it manufactures to produce phenol derivatives like phenolic resins etc, hence, approximately 40% of the phenol manufactured by the company is sold in the open market.
Overall, the market sentiment on the price outlook is torn between traders who think that the slump in demand will help maintain current levels till the end of this month, and the other set of traders feel that the chemical is undervalued at current levels and a price correction should take place by the end of the month.
By Ntasha Berry
ntasha.berry@indianpetro.com
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