Backed By Increased Feed Costs, Resorcinol Prices Go North in the US
- 15-Dec-2022 3:01 PM
- Journalist: Gabreilla Figueroa
USA: The prices of commodities, including Resorcinol in the US, were impacted by a plethora of economic data, political and geopolitical events, pandemic measures, and social initiatives. Market participants and industry titans are anticipating a better call in the economy as the situation with inflation and the supply chain of commodities, including Resorcinol, is improving somewhat, but the condition is still ambiguous.
Since the beginning of the fourth quarter of 2022, demand for Resorcinol in the US has been higher than average due to its widespread use in a number of end-user industries, including chemicals, rubber, pharmaceuticals, and automotive. Considering the high demand and increased Benzene (feed) prices, Resorcinol cost in the domestic market has been increasing since October. In the US, the cost of benzene increased as the energy market changed.
Over the six months leading up to November, there was a sharp decline in supply chain disruption, but it now appears to have stabilized according to many indicators, including shipping costs. The flow of goods, including Resorcinol in the US, has been further encouraged by this improvement in the supply chain. The decreasing US inflation is causing expectations of a decline in US interest rates. However, despite the possibility of a worldwide recession, inflation is still high in many emerging markets.
While China's new covid dampens market optimism, when a large-scale street protest erupted in late November, the Chinese government announced a relaxation of its strict zero covid policy abroad. The adjustment does not include a change in policy; rather, it denotes the easing of limitations that have hampered the export of goods, notably Resorcinol from the world's second-largest economy.
ChemAnalyst forecasts that Resorcinol prices in the local US market would continue on the higher end along with the increased demand from the end-user sectors as a result of these loosening of covid restrictions and improvements in the US supply chain.