Asia Pacific region to subjugate the Phenolic Resin market
- 12-Apr-2022 4:49 PM
- Journalist: Li Hua
The price of Phenolic resin showcased an upward trajectory in the Asian market by the second week of April. Soaring feedstock prices caused by the geopolitical tension along with the growing demand from downstream industries led to the price rise.
The ongoing Russia-Ukraine conflict resulted in the upsurge of Upstream Crude prices, influencing the feedstock Phenol and Formaldehyde in the global market, which severely impacted the Phenolic resin market. In addition, the spike in freight charges has also pressured the suppliers to revise the price of Phenolic resin.
Phenolic resins are synthetic polymers and are extensively used in the automotive, construction, and electronic industries. It is widely used in the production of automotive tires, seals, and metal coatings. The growing population and industrialization in the Asian region led to the increased demand for these products resulting in the upward trend in the Phenolic resins market. In addition, the adaption of Nanotechnology and the rising need for lightweight and fuel-efficient vehicles showed lucrative growth of the product.
As China is the major importer of Phenolic resin in the global market, the rising COVID cases and lockdown restrictions in some parts of the country have severely affected the import and export. The holdup of products in the Chinese port led to a delay in supply, causing the price to rise. Thus, the cost of Phenolic resin in China was witnessed at USD 3914 per MT on 11th of April.
According to ChemAnalyst, “Phenolic resin prices are expected to increase in the forthcoming weeks in the Asian market if the crude price continues to soar. It is predicted that the Asian region might dominate the Phenolic resin market. The war threatens to put even more pressure on imports because of supply chain disruption from Europe and the Black Sea region.”