09 August 2013 17:10 [Source: ICIS news]
LONDON (ICIS)--The European phenol market situation remains unchanged with demand low and business dull, sources said on Friday.
“Phenol is dull, dull, dull,” said a major phenol buyer for the nylon intermediates market.
“It’s all quiet and at the moment there is lots of phenol offered,” the buyer added.
However, another consumer of phenol for the phenolic resin sector said it had seen some improvement in its demand.
“For us, we see a little bit of improvement. It’s picking up a little bit in the last few months,” it said.
Although exposure to cheaper prices in Asia, where the producer exports to, makes it difficult for it to compete in the Asian market.
“The Asian situation is still such an issue. Benzene prices are almost the same [in Europe and Asia] but there is still a difference between the Europe and Asian phenol price,” it added.
Another source involved in phenol described the market situation as “so bad”, adding that it would avoid taking a position.
“All producers have plenty of availability – there is no chance to export,” the source said.
On the selling side, phenol producers confirm that the market situation remains exactly the same as in previous weeks and in some cases, months.
“It’s quiet – it’s not changed in weeks,” said a producer.
“Maybe this would bode well, because people will come back from vacation and see that the market has moved nowhere,” the producer added.
($1 = €0.75)
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