Phenolic Resin prices remained stagnant in early February 2025 due to sluggish demand, high inventories, and oversupply concerns in key global markets. The Lunar New Year holiday in APAC further slowed industrial activity, while economic challenges in Europe and North America limited any potential recovery.

In China, Phenolic Resin prices remained subdued as weak demand from laminates, wood adhesives, paint, coating and molding compounds persisted. The Lunar New Year holiday led to reduced procurement, with many downstream manufacturers either shutting down or operating at minimal capacity. Bulk orders placed in late 2024 saw a slowdown in early 2025, reflecting cautious procurement behavior across industries.

Phenolic Resin manufacturers in China faced intense competition as new production capacity continued to weigh on market sentiment. The slowdown in exports to key markets such as India and Southeast Asia further dampened price movement. Meanwhile, formaldehyde and phenol prices remained weak throughout the last month, offering little cost support to Phenolic Resin producers.

The construction sector, a key consumer of Phenolic Resins in laminates and wood-based applications, faced a seasonal downturn during the Lunar New Year holiday. Additionally, furniture and insulation board production declined, leading to reduced Phenolic Resin consumption. Market participants reported sluggish order follow-ups, with buyers focusing on immediate needs rather than committing to bulk purchases. High inventory levels persisted, maintaining a bearish market sentiment.

In South Korea, persistent oversupply weighed on petrochemical producers, including LG Chem and Lotte Chemical, which reported sharp declines in profitability. Weak demand in Northeast Asia and slow economic recovery in China exacerbated the downturn. Industry players anticipate continued oversupply due to new production capacities in China and the Middle East, coupled with global economic uncertainty.

The European market remained sluggish as weak demand from key end-use sectors, including construction and automotive, continued to constrain Phenolic Resin consumption. High building costs and reduced industrial activity slowed procurement across the region. Wacker Chemie's 2024 results highlighted challenging market conditions in the construction sector, with declining sales and earnings. Additionally, structural issues in Europe's chemical industry, such as high energy costs and stringent regulations, further restricted investment and production growth.

In the U.S., Phenolic Resin prices remained under pressure due to weak demand and seasonal slowdowns. Dow’s Q4 2024 earnings report highlighted difficulties in the construction sector across Europe, Asia, and North America, with weak demand and pricing pressures impacting profitability.

As per ChemAnalyst, Phenolic Resin prices are expected to remain under pressure in the coming weeks due to persistent oversupply and weak demand. The post-Lunar New Year recovery in APAC may take time, while economic uncertainty in Europe and North America is likely to sustain cautious procurement strategies.