Asia phenol new capacity reducing US production and shrinking margins

Before 2012, the US was a major exporter of phenol into China and other parts of Asia, allowing US producers to run at nearly full rates with healthy margins. Since 2012, however, China and parts of Asia have added enough new capacity to nearly match existing US capacity, in addition to previous capacity in the region. This expansion has reduced the ability of US phenol producers to export and has shrunk margins on spot phenol as well, leading to some rationalisation in the US and lower operating rates.

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