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European Phenol Crisis Escalates, Prices to Surge 50%-70%? Plastic Prices Mixed Today, PS Soars by 400

Plastmatch 2025-09-19 11:19:34

1. The European phenol crisis spreads, with prices expected to soar by 50%-70%?

Supply chain restructuring! Sudden tightening of supply, raw material prices may surge by 50%-70%!

The European chemical industry is facing a drastic restructuring of its supply chain. Global giants in phenol and acetone production are...InnospecAnnounced the permanent closure of its plant in Gladbeck, Germany, which originally had an annual production capacity of 650,000 tons of phenol and 400,000 tons of acetone. Subsequently,West Lake ChemicalA series of production cuts by companies has not only caused a sudden tightening of phenol supply in Europe but also led the market to anticipate a price surge of 50%-70% locally. The Asian market is also expected to follow suit, with an estimated increase of 20%-30%.

It is worth noting that INEOS explicitly pointed to three main reasons for the closures: the energy cost crisis, pressure from carbon tax policies, and global competitive imbalance.。

The exit of capacity in Europe is not coincidental. Energy costs remain high, with natural gas prices 30%-40% higher than in Asia, coupled with the EU Emissions Trading System (ETS) carbon price reaching €80 per ton. This multiple pressure makes it difficult for chemical companies to cope. Jim Ratcliffe, founder of Ineos, candidly stated that this is a result of Europe's energy policy and carbon tax mechanisms leading to "deindustrialization," and warned that unless regulators act quickly, the shutdown will not be the last.

Market sentiment is gradually warming up, and Chinese enterprises are

The domestic phenol market has swiftly responded to this wave of international changes. According to data from Business Society, the price of phenol in China has recently increased by approximately 200 yuan per ton, with mainstream price ranges between 6,800 and 9,080 yuan per ton. Market sentiment is gradually heating up, especially with the firm pricing atmosphere at ports and the positive outlook for the far month driving the prices of some offers back up to around 7,900 yuan per ton. This round of price increase is influenced by the spillover effects of a shortage in European supply, as well as supported by steady domestic demand and bidding activities.

Source*: Business Society

In the wave of global industrial rebalancing, Chinese manufacturers have demonstrated significant advantages. China is currently the largest producer of phenol in the world, with a total production capacity exceeding 4 million tons, accounting for nearly one-third of the global supply. By 2025, the total production capacity is expected to rise further to 7.38 million tons, continuing its rapid growth.

A number of leading enterprises, such as Weiyuan Co., Ltd. and Sinochem International, are enhancing their competitiveness through integrated industrial chain layouts. Weiyuan has an annual production capacity of 700,000 tons of phenol and acetone, 240,000 tons of bisphenol A, and 130,000 tons of polycarbonate; Sinochem International is advancing a propylene oxide industry chain project with an annual capacity of 650,000 tons of phenol and acetone and 240,000 tons of bisphenol A.

With the exit of capacity in Europe, the global phenol and ketone industry is undergoing a historic transition from dominance by Europe and America to the rise of Asia.Chinese companies are not only continuously expanding in scale but also gradually demonstrating cost control and risk resistance capabilities. Although industry profit margins are generally under pressure at present, through technological upgrades and internationalization strategies, they are striving for more central positions in the global chemical value chain.

II. Today's Latest Plastic Prices

(The above is compiled from Guanghua Trading and Dayi You Su.)

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European Phenol Crisis Escalates, Prices to Surge 50%-70%? Plastic Prices Mixed Today, PS Soars by 400

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