AFPM ’19: US phenol tight supply maintains price pressure

SAN ANTONIO (ICIS)–US phenol supplies are tight, which is keeping pressure on prices, sources said this week.

Amid force majeures at Altivia and AdvanSix, customers were seeking product from other producers.

However, now INEOS is tight because of halted operations following the ITC fire in Houston.

Market players had anticipated an easing of supply constraints in the second quarter, but the tightness appears set to continue at least into the first month of the second quarter.

The sources were speaking on the sidelines of the International Petrochemical Conference (IPC).

Buyers are weighing two separately-issued phenol price increases for April amid the tight supply and continued pressure from oversupply of co-product acetone.

Demand for phenol is stronger than current supply levels can support.

As in Europe, US contract structures continue to shift to quarterly adder changes.

–

Major US phenol producers are INEOS Phenol, Altivia, AdvanSix, Shell Chemicals, SABIC and Olin.

Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC takes place on 24-26 March in San Antonio, Texas.