1、 The price of the phenol industry chain has fallen more than risen less
In December, the prices of phenol and its upstream and downstream products generally showed a trend of more decline than increase. There are two main reasons:
1. Insufficient cost support: The price of upstream pure benzene has dropped significantly, and although there has been a bottoming out rebound within the month, the price increase is somewhat hesitant due to the accumulation of inventory in the main port. This limits the support of costs for downstream.
2. Supply and demand imbalance: The overall performance of downstream demand is lackluster, especially with the release of new production capacity in some industries, leading to an imbalance in the supply and demand relationship and a decrease in product prices.

2、 Overall profitability of the industry
1. Overall poor profitability: In December, the profits of the phenol and upstream and downstream industrial chains fluctuated, resulting in a relatively poor overall profitability.
2. The profitability of the phenolic ketone industry has improved: Due to the frequent maintenance of phenolic ketone units within the month, supply contraction has provided certain positive support for enterprises. Meanwhile, the decline in the average price of upstream pure benzene has alleviated cost pressures.
3. The epoxy resin industry has the largest losses: the tight spot supply of bisphenol A has led to a narrow increase in market prices, but the low demand season and cost pressure have led to poor profitability in the epoxy resin industry.

3、 Market forecastfor the phenol industry chain in January

It is expected that in January, the market trend of the phenol industry chain will show a mixed trend of ups and downs:
1. Upstream strong operation of pure benzene: It is expected that inventory in the main port of East China will rise and decrease, while downstream demand is improving, which provides some support for the price of pure benzene.
2. Downstream industry pressure remains unchanged: Although some industries such as styrene and phenolic ketone maintenance will bring about an improvement in demand, the supply and demand pressure in downstream industries still exists, and the continuous release of new production capacity may further suppress prices.
3. The overall downward space of the market is limited: the transmission effect of cost side benefits may limit the overall downward space of the market.

In summary, the phenol industry chain faced dual pressures of cost and supply and demand in December, resulting in poor overall profitability. The market in January is expected to show a mixed trend of ups and downs, but the overall downward space may be limited.