2-Aminophenol

Market Dynamics Intelligence for o-Aminophenol (Recent Commodity Market Report)

I. Price Trend
- Stable Benchmark Price: From July 1 to July 7, 2026, the Business Network’s benchmark price for o-aminophenol remained unchanged at RMB 28,833.33 per metric ton, with a daily price change of 0.00%. The price has held at its annual high, exhibiting an exceptionally narrow fluctuation range (both the minimum and maximum values were RMB 28,833.33/ton).
- Market Quotation Divergence: On July 6, Shandong Zhihengda Import & Export Co., Ltd. quoted RMB 29,000/ton (tax-inclusive, 99% purity, 99-ton bulk order), representing a premium of RMB 166.67/ton over the benchmark price. However, this quotation was valid for only three days—indicating limited pricing power on the supply side in certain localized markets.

II. Supply-Demand Dynamics
- Supply Side:
- Concentrated Domestic Capacity: Zhejiang Longsheng Group, Jiangsu Yangnong Chemical, and Shandong Haihua collectively account for 65% of China’s domestic market share. Total domestic output in 2024 reached 156,000 metric tons, up 12.3% year-on-year.
- Limited Impact from Maintenance Activities: Although no direct maintenance shutdowns were reported for o-aminophenol production units, upstream phenol plants underwent maintenance in July, resulting in a production loss of 57,000 tons—representing 27.1% of total external sales volume—potentially affecting raw material supply stability.
- Demand Side:
- Weak Downstream Demand: Phenol’s primary downstream product, bisphenol-A (BPA), which accounts for 45% of phenol consumption, incurred an average monthly loss of RMB 1,374/ton in June. Phenolic resins have entered their traditional off-season, with operating rates falling to only 40–50%. Sluggish end-market demand from real estate, automotive, and electronics sectors is restraining growth in o-aminophenol demand.
- Emerging Market Potential: Accelerated industrialization in Southeast Asia and Africa may become new growth drivers for o-aminophenol demand; however, such demand remains insignificant in the near term and offers no meaningful short-term support.

III. Cost Structure and Profitability
- Upstream Cost Volatility: Phenol prices are highly sensitive to crude oil and benzene prices. As of July 3, the East China benchmark price for phenol stood at RMB 7,562.50/ton, up 1.3% week-on-week; meanwhile, benzene prices rebounded more strongly, rising 5.7% week-on-week—yet overall cost support remains fragile.
- Industry Profitability Under Pressure: The phenol–acetone (phenol–ketone) co-production industry recorded a production profit of –RMB 1,052/ton on July 3—a deterioration of RMB 634/ton compared to June 26—demonstrating intensifying upstream cost pressure being passed downstream, likely squeezing profit margins for o-aminophenol producers.

IV. Competitive Landscape
- Global Market Concentration: The global market is dominated by BASF (Germany), Dow Chemical (USA), and Zhejiang Longsheng (China). BASF maintains a competitive edge in high-end segments, while Zhejiang Longsheng leverages low-cost advantages to capture mid-to-low-tier market share.
- Widening Regional Price Differentials: Phenol prices in Shandong Province were RMB 200–300/ton higher than those in East China due to tightened supply caused by maintenance at regional phenol–acetone facilities—suggesting potential parallel widening of regional price spreads for o-aminophenol.

Analysis & Assessment
1. Reasons for Price Stagnation: The sustained high and stable price of o-aminophenol primarily reflects “dual weakness” in supply and demand—supply is concentrated but largely unaffected by maintenance disruptions, while demand remains suppressed by downstream losses and seasonal slowdowns, leaving the market without directional catalysts.
2. Lagging Cost Pass-Through: Despite mounting losses in the phenol industry, o-aminophenol prices have not declined correspondingly—indicating producers are attempting to maintain pricing to shift cost pressure downstream. However, downstream acceptance is limited, as evidenced by tepid transaction activity for premium quotations (e.g., Shandong Zhihengda’s RMB 29,000/ton offer).
3. Escalating Regional Divergence: Tighter raw material supply in Shandong—stemming from phenol–acetone unit maintenance—may sustain a local premium for o-aminophenol versus East China; yet cross-regional arbitrage opportunities remain constrained.

Forecast
1. Short-Term Price Outlook: The benchmark price for o-aminophenol is expected to remain unchanged at RMB 28,833.33/ton throughout July; however, actual transaction prices may soften slightly as downstream buyers strengthen their bargaining position, rendering premium quotations (e.g., RMB 29,000/ton) unsustainable.
2. Medium-Term Trend: Should the phenol industry’s losses persist into August, o-aminophenol producers may be compelled to lower prices to stimulate demand, potentially shifting the price center downward to the RMB 28,000–28,500/ton range.
3. Long-Term Variables: Key watchpoints include the pace of demand realization in emerging markets (e.g., Southeast Asia and Africa). If end-market consumption rebounds in the second half of 2026, o-aminophenol prices could find renewed support—though risks associated with global overcapacity remain persistent.