South America facing phenol derivative pressure – consultant

31 January 2013 15:56  [Source: ICIS news]

HOUSTON (ICIS)--The South American phenol derivatives market is facing price pressure from imports, a consultant said at the ICIS Pan-American Phenol-Acetone Conference on Thursday.

“We are seeing nylon, BPA [bisphenol A], and surprisingly, phenolic resins,” the consultant said.

The region is facing pressure from imported derivatives of phenol because of cost pressures resulting from high upstream benzene prices in South America and North America.

“MDI [methylene diphenyl diisocyanate] is also becoming a major threat to phenol in wood resins,” the consultant said. “Most of this is cost pressure.”

The threat of MDI is also present in the US market, sources said, because benzene is a smaller part of its makeup than it is for phenol.

The consultant warned that once downstream users convert to using MDI in place of phenolic resins, it is unlikely that phenolic resins could return to prominence.

By: John Dietrich

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