Weekly Analysis of Production Profit Margins for China’s Phenol/Acetone Samples (September 18–24, 2026)

This week (September 18–24, 2026), the weekly average profit for Chinese phenol-acetone samples stood at -400 CNY/ton, a decrease of 260 CNY/ton from the previous period.

According to calculations by Chempricehub, as of September 24, the profit margin for Sinopec East China’s phenol-acetone operations was -643 CNY/ton, down 249 CNY/ton from September 17. This week, Sinopec’s listed price for pure benzene remained stable at 9,900 CNY/ton, while the cumulative price reduction for Sinopec East China’s propylene reached 350 CNY/ton, bringing it to 9,550 CNY/ton. Consequently, the cost basis for phenol-acetone production rose to 15,185 CNY/ton. Meanwhile, Sinopec East China lowered its opening price for phenol by 300 CNY/ton to 8,900 CNY/ton and cumulatively reduced its opening price for acetone by 200 CNY/ton to 9,100 CNY/ton. As a result, the theoretical loss margin for phenol-acetone producers has widened.

Data Source: Chempricehub

Data Source: Chempricehub

This week, spot prices for pure benzene in East China rebounded after an initial decline. The average price fell slightly but overall maintained high-level operation. It is expected that the contradiction between continuously growing supply and insufficient real demand will gradually manifest. The logic supporting prices through delivery short-covering from the previous period is fading, placing downward pressure on market centers. The pure benzene market is expected to end its previous strength and shift toward a pullback from highs, with market transaction references ranging between 9,200–10,500 CNY/ton. Domestic propylene prices retreated from highs this week. Next week, the domestic propylene market is expected to oscillate at high levels. With the Mid-Autumn Festival holiday approaching, downstream factories have moderate pre-holiday stocking needs. Combined with the earlier price retreat in propylene, raw material cost pressures for downstream users have eased. Most derivatives have seen improved profitability, providing some support based on rigid demand. However, uncertainty remains regarding follow-up purchasing from end-users, which may constrain market trends. Mainstream operating ranges for Shandong propylene are projected at 9,400–9,800 CNY/ton. Currently, costs remain elevated, with the inverted spread between phenol and pure benzene exceeding 1,000 CNY/ton. Phenol prices are expected to see a slowdown in declines, potentially shifting toward consolidation or tentative upward pushes. For the acetone market, vessel cargoes arriving after the Mid-Autumn Festival will supplement supply, and utilization rates for domestic phenol-acetone units are rising. Amid expectations of increased supply, the acetone market faces potential downside risks. Attention should be paid to pre-National Day stocking sentiment among end-users. Considering comprehensive analyses of costs, phenol-acetone supply-demand dynamics, and price trends, the loss margin for phenol-acetone enterprises next week is not expected to change significantly.

Sample Description: On the data release date, Chempricehub monitors theoretical costs and profits based on the listed prices of Sinopec East China’s phenol-acetone products and raw materials.

Terminology Explanation:

• Cost: Production cost refers to the sum of direct expenses, direct labor, and indirect manufacturing overhead incurred by an enterprise to produce a specific type and quantity of product. The production cost for phenol-acetone refers to the theoretical cost derived from two major raw materials: pure benzene and propylene.
• Profit: Phenol-acetone production profit is calculated based on petrochemical enterprise prices. Specifically, it is defined as Sinopec East China’s listed price minus total costs and additional fees (excluding financial expenses).

Statistical Scope: Data statistics cover the period from last Friday to this Thursday, comparing profit data for this Thursday versus last Thursday. Chempricehub releases phenol-acetone profit data every Thursday between 15:00 and 17:00.