Global C9 Petroleum Resin Prices Showcase Bullish Trend Amidst Rising Input Costs and Demand
Global C9 Petroleum Resin Prices Showcase Bullish Trend Amidst Rising Input Costs and Demand

Global C9 Petroleum Resin Prices Showcase Bullish Trend Amidst Rising Input Costs and Demand

  • 04-Oct-2023 12:51 PM
  • Journalist: Francis Stokes

The global C9 Petroleum Resin market experienced a bullish situation throughout September 2023. This upswing was driven by several factors, including increased demand from major importing nations, high inflation, and rising production costs linked to the escalating cost of feedstock Crude Oil.

One of the primary drivers of rising production costs for C9 Petroleum Resin was the effect of feedstock Crude Oil production cuts among OPEC+ members. These cuts limited the global supply of medium and heavy sour grades of Crude Oil. Typically, sweet Crude Oils trade at a premium compared to sour Crude Oils because they are cheaper to refine and yield more valuable products. However, recent market dynamics saw sour Crude Oils, such as Dubai Fateh, trading at a premium to sweet Crude Oils like Dated Brent. This shift in price relationships had a cascading effect on the feedstock cost, impacting the production cost of C9 Petroleum Resin on the international market.

In Europe, C9 Petroleum Resin prices experienced frequent fluctuations throughout September 2023. The major factors contributing to these price variations were rising input costs and high inflation in major exporting nations, with Germany being a prominent example. Despite this, C9 Petroleum Resin importing nations like Belgium saw a marginal improvement in consumption, primarily driven by the construction sector. Europe's service sector faced challenges during this period, highlighting the resilience of the C9 Petroleum Resin market.

The United States outperformed Europe during this period, with the consumption of C9 Petroleum Resin remaining higher than anticipated. The US construction sector gained momentum, supported by unchanged interest rates set by the Federal Reserve. However, concerns lingered due to higher inflation, and the Federal Reserve hinted at potential interest rate increments by year-end. This action could pose a barrier to the construction sector's growth, potentially affecting C9 Petroleum Resin prices and consumption in the coming months.

A similar market trend emerged in Asia, with the Chinese market witnessing a significant price increase in September 2023 despite low domestic demand. The driving force behind this price trend was higher imports from other Asian nations. In India, festivities injected confidence into the market, increasing cargo procurement. The stable economic momentum in India spurred commercial, residential, and government construction projects post-monsoon, further boosting C9 Petroleum Resin prices across the Asian market.

The outlook for C9 Petroleum Resin prices suggests that the bullish trend is expected to continue until mid-November. High input costs in the global market and the anticipated rise in energy prices are likely to influence this trend. However, in the USA, the slow yet steady incline in demand may face challenges due to potential interest rate hikes by the Federal Reserve by year-end, which could impact prices and consumption of C9 Petroleum Resin in the coming months.

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