China’s phenol prices reverse gains on weak demand

31 July 2012 11:01  [Source: ICIS news]

SINGAPORE (ICIS)--The spot prices of phenol in China reversed last week the gains since late June as the recent volatility in crude futures and the arrival of imported cargoes dampened buying sentiment, market sources said on Tuesday.

Spot prices dipped by $40/tonne (€33/tonne) at the low end of range to $1,400-1,450/tonne CFR (cost & freight) China on 27 July from a week ago, according to ICIS data.

The prices had risen by around $200/tonne previously, from $1,250-1,280/tonne CFR China on 22 June to $1,440-1,450/tonne CFR China on 20 July, according to the data.

Buyers retreated to the sidelines in view of the persistently weak demand from the downstream phenolic resins sector amid a slowing Chinese economy and a soft domestic market, traders said.

Some traders are offloading cargoes in the domestic market at cheaper prices as they are eager to lock in profit amid an uncertain price outlook, while others are holding out as they believe that the price downturn could be short-lived, given the tight supply and cost pressure, market sources said. 

($1 = €0.82)

By: Liu Xin
+65 6780 4359

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