The demand for Phenol is moderate to weak across major trading hubs in India. Interestingly, Phenol's bulk price increased by Rs.3 - 4 per kg at the end of this week, in parallel marginal price hike for Acetone was also observed. Indianpetrochem takes a quick review on the price trend for Phenol and examines the reason for the price hike in this market review.
In the second and third week of March the price of Phenol averaged to around Rs. 104 per kg Ex-Kandla (median price was around Rs. 105 per kg), exclusive of all taxes. However in the last week of March, the price decline to Rs. 99.25 per kg , due to weak market sentiment on account of year end closing, market participants reckon on various accounts.
After the year end closing, the bulk price for the chemical gained momentum this week, where prices touched to Rs. 101-102 per kg currently.
In this light, a trader told the website "Short supply is the main driving force for the rise in prices for the chemical".
To counteract this another trader told the website, "The demand for Phenol is at an all time low, much poorer than last month. I feel that I am back in 2008 where I was sitting on huge inventories without any off takes".
Indianpetrochem speculates that the reason for the price hike would be done in order to match imported phenol again domestic prices, whereby Herdilia's basic price is at around Rs. 106 per kg (exclusive of all taxes).
Overall, the demand for Phenol is moderate at the moment in the country, hopefully demand should gain momentum post the elections.
by Ntasha Berry (ntasha.berry@indianpetro.com)
(This article was published on April 11, 2014)
In the second and third week of March the price of Phenol averaged to around Rs. 104 per kg Ex-Kandla (median price was around Rs. 105 per kg), exclusive of all taxes. However in the last week of March, the price decline to Rs. 99.25 per kg , due to weak market sentiment on account of year end closing, market participants reckon on various accounts.
After the year end closing, the bulk price for the chemical gained momentum this week, where prices touched to Rs. 101-102 per kg currently.
In this light, a trader told the website "Short supply is the main driving force for the rise in prices for the chemical".
To counteract this another trader told the website, "The demand for Phenol is at an all time low, much poorer than last month. I feel that I am back in 2008 where I was sitting on huge inventories without any off takes".
Indianpetrochem speculates that the reason for the price hike would be done in order to match imported phenol again domestic prices, whereby Herdilia's basic price is at around Rs. 106 per kg (exclusive of all taxes).
Overall, the demand for Phenol is moderate at the moment in the country, hopefully demand should gain momentum post the elections.
by Ntasha Berry (ntasha.berry@indianpetro.com)
(This article was published on April 11, 2014)
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