Deepak Phenolics Phenol in Dahej

Phenol prices have softened this week due to increased supply, weak upstream market trends, and bearish sentiment. Domestic production has resumed, ensuring stable supply levels. Seasonal demand recovery from plywood manufacturers is expected to offset current price pressures partially.

Phenol prices in the domestic market saw slight declines, largely due to stable supply and weaker feedstock prices. With Deepak Phenolics resuming operations and seasonal demand expected to increase, the price outlook remains cautious but optimistic.

Importers have reduced phenol prices by ₹2/kg, setting them at ₹94+ (Ex-Kandla) for direct consumers on advance payment terms, and ₹95+ for traders and small buyers. The supply of phenol remains stable, supported by consistent vessel arrivals and prompt shipments.

In the domestic market, importers have reduced Phenol prices by ₹2/kg to ₹96/kg ex-Kandla on advance payment terms. Trader offers were also reported lower, at ₹97/kg ex-Kandla on 60-day credit terms.

Importers have raised phenol prices by ₹3/kg, bringing them to ₹101/kg on an ex-Kandla basis and ₹102/kg on an ex-Dahej basis, with payments required in advance. Some traders are offering phenol at prices between ₹102-103/kg ex-Kandla for immediate dispatch, with 60-day credit terms available.

Toluene prices in India have increased by ₹3/kg, driven by a rebound in crude oil and naphtha prices, as well as strong demand from the paints, coatings, and pharmaceutical sectors. Supply constraints, coupled with positive spreads in BTX components, suggest a further potential price hike of $70/MT in the near term. India’s Toluene demand is largely met through imports, with domestic production contributing only 16.8%.

Domestic methanol prices witnessed an increase of ₹1.00/kg as importers adjusted their offers upwards. The updated prices, based on advance payment terms with immediate lifting, are as follows: Ex-Kandla: ₹27.00++, Ex-Mumbai: ₹27.50++.

The melamine market is experiencing downward pricing trends due to oversupply and reduced demand in downstream industries. New production capacities and restored operations of previously offline facilities are intensifying the supply-demand imbalance. Coupled with declining raw material costs, these factors create a challenging outlook for the market.

Toluene prices in the Indian market saw a downward revision due to weak upstream dynamics, including falling crude oil and naphtha prices. The demand remains subdued but is expected to recover with increased activity in the pharmaceutical and paints industries. Global market trends, such as maintenance at chemical plants in China, are also influencing supply and pricing dynamics.