Phenol Prices in India Turn Bullish Pressured by Consistent Rise in Upstream Crude Values

Prices of various petrochemical products have registered a continuous climb following a sudden surge in the manufacturing cost of the product. Even though the supply issue has gradually eased across the globe, rise in prices of upstream crude has fairly contributed to the upswing in the prices.

Phenol prices in India witnessed a significant rise by 2.5%, on 11th February. Prices turned firm due to the appreciable rise in upstream crude values which surged to USD 95 per barrel on Friday. In addition, marginal reduction in the deliveries from China due to several curbs and market closures on account of lunar holidays has also made players anxious over the availability of material at times of prevalent demand pattern. Indian manufacturers were heard operating their plants at optimum level to cater sufficiently to the domestic demand.

Several traders were offered cargoes at high premium, due to sudden rise in manufacturing cost in the past few weeks. High global demand and immense geopolitical concerns between Ukraine and Russia are some of the major reasons behind the consistent rise in crude prices. The situation has levied a direct impact upon the prices of its derivatives due to which overall petrochemical chain has been facing consistent upward pressure.

As per ChemAnalyst, “Prices of Phenol and Acetone have turned bullish due to rise in cost of direct crude derivatives like Propylene. Prices are likely to maintain an upward crawl in the coming weeks due to expected rise in crude values couples with firm demand in the domestic market.”