Due to strong cost support and supply side contraction, both the phenol and acetone markets have recently risen, with an upward trend dominating. As of July 28th, the negotiated price of phenol in East China has increased to around 8200 yuan/ton, a month on month increase of 28.13%. The negotiated price of acetone in the East China market is close to 6900 yuan/ton, an increase of 33.33% compared to the same period last year. According to Longzhong Information, as of July 28th, the profit of phenolic ketones from Sinopec’s East China manufacturer was 772.75 yuan/ton, an increase of 1233.75 yuan/ton compared to June 28th.

Comparison Table of Recent Domestic Phenol Ketone Price Changes
Unit: RMB/ton

In terms of phenol: The price of raw material pure benzene has increased, and the supply of imported ships and domestic trade is limited. Participate in large-scale bidding for replenishment, and actively cooperate with the factory to increase prices. There is no pressure on the spot supply of phenol, and the enthusiasm of the holders for the increase is higher, leading to a rapid increase in market focus. Before the end of the month, the maintenance plan for the phenol ketone plant in Lianyungang was reported, which had a significant impact on the August contract. The mentality of operators has further improved, driving the market quotation to rapidly rise to around 8200 yuan/ton.
In terms of acetone: The arrival of imported goods in Hong Kong is limited, and the port inventory has decreased to around 10000 tons. Phenol ketone manufacturers have low inventory and limited shipments. Although the Jiangsu Ruiheng plant has resumed restart, supply is limited, and the maintenance plan for the Shenghong refining plant has been reported, affecting the contract quantity for August. The cash resources circulating in the market are tight, and the mentality of holders in the market has been strongly stimulated, with prices constantly rising. This has driven petrochemical enterprises to take turns increasing unit prices, some traders entering the market to fill in gaps, and some sporadic terminal factories bidding for replenishment. The market trading atmosphere is active, supporting the focus of market negotiations to rise to around 6900 yuan/ton.
Cost side: Strong performance in the pure benzene and propylene markets. At present, the supply and demand of pure benzene are tight, and the market may be discussed around 7100-7300 yuan/ton in the near future. At present, the fluctuation of the propylene market is increasing, and polypropylene powder has a certain profit. Downstream factories only need to replenish their positions to support the propylene market. In the short term, prices are operating well, with the main Shandong market maintaining a fluctuation range of 6350-6650 yuan/ton for propylene.
Supply side: In August, the Blue Star Harbin Phenol Ketone Plant underwent a major overhaul, and there are currently no plans to restart the CNOOC Shell Phenol Ketone Plant. Wanhua Chemical, Jiangsu Ruiheng, and Shenghong Refining and Chemical’s phenol and ketone plants all have expected major repairs, resulting in a shortage of imported goods and a shortage of short-term spot supply of phenol and acetone, which is difficult to alleviate in the short term.

With the rise in prices of phenol and acetone, phenolic ketone factories have kept up with the market and raised unit prices multiple times to cope. Driven by this, we emerged from a loss situation that lasted for over six months on July 27th. Recently, the high cost of phenolic ketones has been supported, and the tight supply situation in the phenolic ketone market has been significantly driven. At the same time, the spot supply in the short-term phenol ketone market continues to be tight, and there is still an upward trend in the phenol ketone market. Therefore, it is expected that there will be further room for improvement in the profit margin of domestic phenolic ketone enterprises in the near future.