This week, the domestic phenol market experienced a wide decline. Sinopec’s listing price in East China will be lowered by 300 yuan per ton within the week, with an execution of 6000 yuan per ton. According to data monitored by Shengyi Society, from the perspective of the East China market, the domestic phenol market price was 6163 yuan/ton on December 1st and 5760 yuan/ton on December 5th, a decrease of 6.54%.

From a supply perspective, the inventory of phenol at Jiangyin Port was around 10000 tons at the beginning of the week. Imported and domestic cargo were replenished during the week, but the impact on spot goods was not significant. Overall, the market supply is sufficient, and traders are actively lowering prices for shipments.
From the demand side perspective, downstream terminal enterprises have limited participation in market inquiries. The main reason for the bearish market this time is also that the demand side is difficult to release, and the expectation of breaking the six point threshold has been released ahead of schedule. Factories have significantly lowered their listing prices, causing the market’s low points to be continuously refreshed this year. Currently, the market is affected by low prices, resulting in insufficient transactions and further decline in the center of gravity.
Business Society predicts that the phenol market will operate at a low level. Overall, cost fluctuations have little impact on the phenol market, and the current tight supply-demand relationship is the main factor driving the phenol market to continuously hit new lows this year. From the supply side, there may be parking plans for Yangzhou Shiyou next week, and the overall replenishment of domestic trade cargo is stable; On the demand side, overall procurement is based on demand, with small orders being the main focus, and downstream overall demand is unlikely to change significantly.