Europe phenol still tight on global supply issues - producers

11 April 2014 13:56 Source:ICIS News

LONDON (ICIS)--Phenol producers on Friday pointed to tightness in the European market, with global supply issues seen as the key cause.

Phenol is unusually tight due to shortages in cumene, and turnarounds in Asia and US,” said one producer.

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.

By Rhian O'Connor