For the Quarter Ending March 2022
North America
North American Petroleum Resin prices soared in the first quarter of 2022, reaching USD107.24 per barrel in March of 2022. In the first month of the year, WTI Crude touched seven-year highs in January. Despite OPEC+'s commitment, supply was disrupted, and output fell short of expectations. With the conflict in Ukraine intensifying and penalties by the US govt. on the Russian oil, the price of West Texas Intermediate crude, the US benchmark, surpassed USD120 per barrel by the end of the quarter. After a year of harsh weather squeezing supply, resin manufacturers in the United States faced several challenges in recovering outflows just as more supply is set to ship out in 2022. Petroleum jelly spot prices climbed in the fourth quarter of 2020 because of resilient demand from downstream industries. The quarterly averaged price ranged in between USD 3500-3700/MT in the North American region.
Asia Pacific
Petroleum oil prices in the Asian market rose during the first quarter of 2022 due to numerous causes, including the repercussions of the Russia-Ukraine war and the suspension of Chinese New Year production activities. In the first quarter, China's crude rose 1.5 percent year on year to 13.96 million barrels per day, owing to war-driven high global oil prices and lockdowns imposed because of new outbreaks of COVID-19. The tight supply situation in the Pet Resin market has been exacerbated by the rising demand from the downstream adhesive and paint & coatings sector. Due to rising pricing and global supply shortages, importers have hesitated to book large cargo. The prices in the Asian market averaged in the ranged of USD 4700-4900/MT.
Europe
in the European region, the price of Petroleum Resin increased by roughly 8-9% in the first quarter of 2022, as compared to the last quarter of 2021, in tandem with the rising crude prices. The increase in petroleum resin spot prices was due to resurgent demand from end-user industries such as adhesives & sealants, rubber compounding, paints & coatings, and other industries, with various sectors rebounding after a stable Q4 2021. High oil prices, which also drove up the price of gasoline and diesel, kept inflation at an uncomfortably high level long into 2022, stifling global supply chains and stalling the economic recovery in many nations. Due to the crisis in Ukraine and the associated restrictions on Russian oil purchases, the global Petroleum Resin supply chain has recently been hit by limited product availability.
For the Quarter Ending December 2021
North America
In Q4 2021, the market of Petroleum resin in North America experienced an upward trajectory tracing the pattern of Q3. The loosened pandemic restrictions increased covid-19 vaccination rates & upsurged economy combinedly resulted in higher demand for petroleum production. Besides increased production demand, constraint supply of crude oil ensured consistent increment in the price of petroleum resin. In December 2021, U.S. crude oil production decreased because of a decline in investment in U.S. oil production. Furthermore, cold weather in February & hurricanes in August contributed to this drop in supply.
Asia
Coming towards the fourth quarter of 2021, certain western giants joined hands with big Asian players, resulting in a sudden price drop of petroleum resin. Several Asian nations decided to release oil from their strategic reserves to cater to the overall demand. Furthermore, ongoing concerns around limited need sustained owing to the new covid-19 variant, and consequently, the price value of Petroleum Resin dipped after multi-year highs. Nonetheless, as the year 2021 concludes, a slight increment in crude oil prices was observed, impacting the prices of petroleum resin.
Europe
Even after a solid supply in Q3 2021, the prices of downstream business of crude oil were skyrocketing. However, as was expected, the impact of increased prices was relatively short-lived. Consequently, the crude oil prices fell over demand concerns owning to the covid-19 resurgence in Europe. The graph remains falling till the end of November, but suddenly it started fluctuating and then escalated abruptly. After a cold winter, the reduced stocks and limited supply from Russia resulted in soaring downstream product prices. The augmented price value of crude oil led to enhanced prices of downstream petroleum resin.
For the Quarter Ending September 2021
North America
During the 3rd quarter of 2021, the market witnessed a significant rise in the prices of Petroleum Resin across the North American region. Increased consumption of paint and coatings resulted in strong demand for Petroleum Resins. Prices for Petroleum resin have been increasing since the beginning of Q3 due to rising upstream and high overall production cost. Availability of imports remained hampered but showed marked recovery over Q2. Demand growth of Petroleum Resin was favouring the price uptrend.
Asia
During the third quarter of 2021, the prices of Petroleum resin surged significantly across the Asia Pacific region. Severe shortages in the supply of petroleum resins were reported in Q3 due to curtailed plant operations. Estimated deliveries for many types of resins stretched from a month at most into several months due to a shortage of shipping containers and supply chain bottlenecks. Consumption levels improved as we moved towards the end of Q3 with the several downstream players preparing themselves for hefty purchases. Prices surged proportionately in lieu of tight material availability and strong demand.
Europe
There remained a couple of instances during Q3 2021 when Petroleum Resin saw abrupt cost increases and even tighter supply across the European region. Skyrocketed freight costs crept into Q3 2021 as a key factor impacting a number of downstream businesses. Higher energy and crude oil pricing further impacted operating margins and triggered fears of resin prices continuing an upward trajectory even in Q4.
For the Quarter Ending June 2021
North America
Petroleum resin prices in North America climbed up during this quarter, under the influence of rising crude oil value. Consumption of crude oil increased effectively by the country due to the Sharp economic rebound and successful vaccination drive in US. Meanwhile, constrains on supply of crude oil by OPEC countries, led to a rise in its prices. Thus, upward crawl in crude oil values increased the prices of several downstream derivatives, including Petroleum resin across the region. However, the supply for C5 and C9 grade improved compared to the previous quarter.
Asia
In the Asian market, demand for Petroleum resin remained firm throughout the quarter. In China, the demand for Naphtha derived products were high, as the sharp economic rebound increased the consumption of petrochemicals. Therefore, being a side product of Naphtha, production Petroleum resin also increased effectively. Meanwhile, in India, demand for C5 and C9 resins remained dented till the end of May, under second wave of pandemic in the country. However, during the month of June, traders remained optimistic regarding demand, as the country was recovering from the pandemic.
Europe
European market witnessed ample supplies for C5 and C9 resins, as the production of side product Naphtha remained firm during the quarter. Consecutively, price of Naphtha and Resins declined in the meantime, due to excessive supplies. Besides, demand for Petroleum resins from the downstream adhesive and paint sector improved, as the construction sector of Europe was gradually recovering from the pandemic devastation. However, shortage of several raw materials used in construction sector, was halting this boom, which was also affecting the consumption of Petroleum resins from these segments.
For the Quarter Ending March 2021
North America
In North America region, exports and domestic demand for different petrochemical resins remained high, though the supply remained severely low. More than 80% plants remained idle for more than a month due to winter freeze, that chocked the total output of resins from US globally. This freeze created a global supply crisis leading to a considerable price rise affectively throughout the quarter. Prices marginally stabilized by March beginning following the resumption in several plant activities. Again, in late March, prices witnessed an astonishing rise, like for Polypropylene (PP) rose by USD 271.2 per MT, Polystyrene by USD 113.3 per MT and Polyethylene by USD 135.1 per MT.
Asia
During this quarter, demand for feedstock Naphtha from some countries were higher than the others, due to sturdy demand for downstream Petroleum Resin. In China, Lunar year reduced the utilisation of Naphtha for days, which consequently led to a decline in its inventories. While in India, demand for Petroleum Resins from downstream sectors remained high, hence the demand for Naphtha also remained high. Moreover, the global shortage for Naphtha due to the US gulf storm and container shortage across Asia-Europe trade route, skyrocketed the prices of Naphtha in India. Naphtha prices rose from USD 742.08/MT to USD 927.66/MT from January to March ending 2021.
Europe
European market faced high export demand for all types of Petroleum Resins due to the shortage in supply from US in the global market. Since the production from Europe was not sufficient to satisfy the global demand alone and hence it led to an upsurge in the prices. Later during March end Suez Canal crisis created another critical condition, where it increased the prices of most of the chemicals traded between Asia and Europe. High freight cost also emerged as a considerate factor that propelled the prices of Petroleum Resin in the European market.
For the Quarter Ending December 2020
Asia
The supply of Petroleum resin across Asia was observed tightening by the end of the Q4 2020 with the prices gradually decreasing due to tight regional supply. However, the uptrend was absorbed in the spot prices of petroleum resin due to reinstated demand from end user industries such as adhesives & sealants, rubber compounding, paints & coatings, etc. with several sectors picking up after a muted Q2. Resilient demand from these industries rose the spot prices of Petroleum jelly in Q4 of 2020. The long-term contract prices are further estimated to be ascend with anticipations of further increase in demand from the paints & coatings sector owning to re-establishment of construction activities in the region.
Europe
Supply tightened due to restricted lockdown occurred due to second wave of Covid-19. Also, seasonal hurricanes hitting the US export market created deficit of imports in the European region, creating a further slump in supply. Traders and end users dived into the spot markets amidst strong fears of short supplies during the next quarter. Spot offers were hiked by double-digit as compared to Q3. Some unprepared buyers rushed for procurement from the nearby sources, in anticipation to secure cargoes to cater to near-term demand.
North America
Significant increase in the export demand due to increased production activities from the Asian market increased the export spot offers of the product. Low inventories due to strong downstream also pushed up the pricing curve towards the year-end. As downstream industries are expected to operate at higher production rates, the contract price of Petroleum Resin is further expected to increase for the next quarter. Moving into Q1 2021, Petroleum Resin market prices are expected to respond to the change in the demand-supply situation and indeed an increase in the price is expected for due to stability in demand and soaring upstream rates.
