At the end of August, after the phenol market rose 100-150 yuan / ton in late August, the support was insufficient, and the pressure of shippers was highlighted. The phenol Market Center of gravity was weak near the end of August. According to the monitoring data of business agency, on August 21, 2020, the average offer of phenol Market in China was 5600 yuan / ton, and 5600 yuan / ton in national market was the mainstream quotation trend. So far, the average offer of phenol Market in China on August 28 was 5487 yuan / ton, including 5400-5450 yuan / ton in East China and 5450-5600 yuan / ton in other regions. Generally speaking, the phenol Market in late August decreased by 2.1% In the end of August, the phenol Market weakened and the decline ended.

Trend chart of phenol average price in national market

Trend chart of phenol commodity index in East China (factory offer)

At the end of August, the overall market weakened, mainly due to the sluggish demand for terminals under sufficient supply and the poor procurement of terminal factories, which just needed to be followed up, and the market confidence was not optimistic. However, the domestic phenol Market is relatively sufficient, and it is still difficult to break through the bottleneck under the game of supply and demand.

At present, the domestic phenol ketone plant is operating at a high level. After Sinopec’s three well unit resumed production on the 24th, the average operating rate of phenol and ketone plants in China is as high as 95%. The phenol ketone plant of Zhejiang Petrochemical Company has also started production. Although the material has not yet been discharged, the overall supply side is sufficient. Near the end of the month, the port arrival volume is relatively sufficient, and the shipping time from Saudi Arabia, Singapore, Thailand and South Korea is relatively concentrated. It is expected that about 8000 tons of ships from Saudi Arabia will arrive at the port in early September. Although the port inventory is not at a high level, under the full supply side, the carrier’s shipment will decline in a narrow range.

From the downstream demand side, the upward space of bisphenol a market at the end of the month is relatively objective, and the current unit operating rate is expected to rise to 70%. Among them, Sinopec No.3 well unit will resume its restart on the 24th, and Lihua yiweiyuan 240000 ton unit is expected to resume production at the beginning of next month, and the phenol supply from these two companies is expected to decrease.

At present, the 150000 T / a phenol ketone plant of Bluestar Harbin is planned to be overhauled in early September, and the production is expected to resume after the 11th National Day. Generally speaking, the domestic phenol ketone plant is still operating at more than 90%. In the short term, the port replenishment is relatively sufficient. Although the unloading is delayed due to typhoon, the port inventory is expected to increase in the short term. In the end, there is no significant benefit from the phenolic resin plant The start-up is stable and the market demand is narrow. In the adjustment space, the overall situation is relatively stable. The downstream bisphenol a market is higher due to the product supply side, but the support for phenol is not strong.

From the perspective of business agencies, the phenol Market at the end of August was weak, and it was difficult to get rid of the current situation in the short term. Under the support of sufficient supply, the demand was not stimulated. At present, due to the support of the cost, the factory also limited the shipment to maintain the market situation. It is expected that the short-term phenol market will be slightly negative, and the phenol Market in East China will fall in a narrow range at the end of August, and the price space in East China is expected to be 5300-5400 yuan / ton.