Phenolic resins are produced via the condensation reaction of phenol and formaldehyde and are typically classified into novolac (acid-catalysed, requiring a curing agent) and resol (base-catalysed, self-curing) types, each tailored for specific end-use applications. Phenolic resin prices in the Indian market rose from ₹55/kg in April to ₹62/kg by June 2025, reflecting a 12.7 per cent cost-driven escalation, directly linked to a 4-5 per cent rise in phenol prices. Demand in Q2 2025 was led by the automotive sector (~32 per cent of total consumption), followed by construction (27 per cent), electrical & electronics (21 per cent), and others.

Demand Uptick from the Automotive Sector followed by other sectors
India’s automotive industry recorded an 11 per cent increase in production (2.31M to 2.58M units, April-May 2025), directly boosting phenolic resin consumption in brake linings, engine components, and under-the-hood automotive applications.

Role of Global supplier
Global demand of phenolic resin is expected to reach $21.56 billion by 2035 with an CAGR of 4.78 per cent. Global producers such as Hexion (US), Sumitomo Bakelite (Japan), SI Group (US), DIC Corporation IVP ltd (India), and Prefere Resins (Europe) and others have advanced process technologies and formulation expertise. Their role ensures supply stability, process efficiency, and quality control for licensed phenolic resin producers across geographies, including India.

Value Chain Alignment
An aligned upward trend across the phenolic resin value chain is evident:

Feedstock (Phenol): A 4 per cent price increase because of supply constraints and geopolitical concerns. The cost of benzene is rising since May. As per AlchemPro's latest assessment, the phenol market is anticipated to experience brief supply tightness in the immediate term.

Intermediate (Phenolic Resin): The price growth of phenolic resin is driven by rising input costs and strong demand pull across key sectors.

Downstream: The expanding output in downstream industries is generating sustained demand for phenolic resins.