02 April 2010 19:18 [Source: ICIS news]
HOUSTON (ICIS news)--The US phenol market remains mired in supply constraints and rising feedstock cost pressure as the second quarter begins, market sources said on Friday.
However, participants said they would be optimistic about 2010 if operational issues that have plagued the market since December could be resolved in the short term.
The problems began with feedstock cumene.
In mid-January Citgo had production problems at its ?xml:namespace>
Production cuts and maintenance turnarounds in
Phenol makers, already short of cumene due to supply constraints or credit problems in buying feedstocks, entered the cumene market to buy phenol.
As Sunoco had problems restarting a line at
Then, Dow Chemical declared force majeure (FM) for phenol in the
Short term availability became a problem, specifically for spot buyers, and those who typically purchase from Dow or Sunoco, a buyer said.
Now, sources said Shell had begun a 2-4 week planned turnaround in
Dow has completed repairs at its Oyster Creek facility in
Sunoco was also ramping up production at its
The global supply of phenol remained tight, with Europe and
April contracts for European BPA were expected to move up significantly on the back of restricted availability, firming demand and higher feedstock costs, a trader said.
The tightness was being felt throughout the chain. BPA sellers are looking for phenol and they cannot get it. Acetone prices are also moving up like crazy, the trader said.
Looking ahead from the sidelines of the National Petrochemical & Refiners Association (NPRA) International Petrochemical Conference in
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