LONDON (ICIS)--Phenol producers on Friday pointed to tightness in the European market, with global supply issues seen as the key cause.
The situation is exacerbated by a small uptick in demand in Europe over the last couple of months.
“Phenol demand is quite good compared to last months… [We are seeing] increased demand from BPA [bisphenol-A] and phenolic resins,” said a second producer.
However, other players do not see increased demand as the primary cause.
“Don’t think its European demand driving it. Europe is probably a little better,” said the first producer.
Although phenol is tighter, most buyers continue to report no difficulty in obtaining product.
“Phenol supply is no problem, [the shortage] was more logistics issue than supply issue,” said one major buyer.