Phenol Market Trends and Outlook Amidst Fluctuating Economic Conditions

Throughout the second quarter of 2024, the chemicals industry witnessed varied price trends, with significant impacts on key commodities. While Benzene prices surged, prices for Propylene, Acetone, and Phenol remained stable. In Europe, the downturn in residential construction has led to reduced employment and the exit of small enterprises, affecting market dynamics.

Phenol prices settled at USD 1550 per ton by late June, prompting cautiousness among manufacturers amid anticipated reduced inquiries from the terminal market. The European construction sector, traditionally resilient, is projected to decline by 2.3% in 2024, potentially impacting Phenol demand in applications like adhesives and insulation materials.

In the USA, moderate inquiries from downstream industries such as construction and automotive had a minimal impact on Phenol demand. Similarly, Chinese market demand remained steady, supported by consistent upstream raw material costs and ample finished goods inventories.

Recent increases in crude oil prices, following OPEC+'s production decisions, are expected to exert upward pressure on Phenol prices due to higher raw material costs. However, limited improvement in demand from downstream industries like Bisphenol A may restrain significant price advancements in the near term.

Looking ahead, while marginal increases in Phenol prices are anticipated in regional markets, sustained bullish sentiment hinges on developments in raw material costs and demand recovery from sectors like construction as Q3 progresses.

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