The Shortage of Phenol May Be Emerged Again in Asian API Market

According to report,due to the recovery of the demand and many planning capacity cannot be put into production on schedule.The shortage of phenol may be emerged again in Asian market during next two years.

China is the main country that owned new capacity of phenol in Asia.Because of the demand exceeded supply for so many years, enterprises get numerous profits through phenol,especially in 2011.Many enterprises announced to new-construct and expand capacity of phenol.

In fact,many projects may not be put into production on schedule. Meanwhile,under the uncertain enviroment of global economic outlook.The demand of downstream derivatives is not good.A large number of new capacity is put into production in succession will make the profit pressure increasing.That makes a certain effect to new project of phenol.

As for the aspect in demand,although the increase of demand of phenol slow down in Asia,the increasing percentage is estimated between 6%~8%.Considering part of planning unit cannot put into production,the new capacity will be fully consumed by the market.

According to the prediction,based on the current situation of low stock.The phenol market in Asia will restore growth after the beginning of autumn and last to the end of the year.The trend of increasing demand of phenol will maintain to next year,and the speed of growth depend on the macro-economy.

By Ricky