For the Quarter Ending June 2021
Overall market outlook in the North American region improved along with the recovery of the industrial infrastructure in the US Gulf Coast during the second quarter of 2021. Supplies surged in the region, owing to the restart of several refineries. Demand bolstered as the enquiries improved from the downstream leather, adhesives and coating industries as the region observed the seasonal hike in demand from the building and construction sector. Prices in North American eased by marginal difference. Prices of Benzene amidst the rising inflation rates provided the cost support to keep the pricing trend healthy.
The Resorcinol market in the Asia Pacific region observed mixed sentiments in the second quarter of 2021. Whereas in Northeast China, upstream supplies were curtailed by significant margins due to the turnarounds in several facilities across the regions. Discussions of Resorcinol in the Indian market turned soft in May, as the contract purchases declined due to reduced enquiries from the downstream industries like leather, adhesives, and coating amidst the lockdown restrictions in several major states. As a ripple effect the pricing trend observed significant downfall in May and rebounded with ease in the restrictions in June. Prices of Resorcinol at Ex-Work Mumbai settled at USD 9965 per tonne in June.
During the second quarter of 2021, supplies of Resorcinol in the European region remained balanced to tight owing to the restricted availability of key feedstock amidst the series of turnarounds in several manufacturing facilities across Europe. Demand observed a seasonal hike from the construction sector, following the increment in enquiries from adhesives, and coating industries. The pricing trend of Resorcinol in the European region remains buoyed amidst the supply demand imbalance and global inflation rates.
For the Quarter Ending March 2021
Resorcinol supplies were balanced to tight in the US market during Q1 2021. A major plant ended its turnaround period in the first half of the fourth quarter. However, various plant outages in mid-February amid severe freeze weather conditions in the US hampered the upstream supplies, and further resulted in the increment in prices of Resorcinol in the regional market. The demand outlook maintained an uptrend from the disinfectant industry and the pharmaceutical preparations.
Supplies in the Asia Pacific region surged during Q1 2021 due to the addition of new facilities in China, which provided ample amount of feedstock for Resorcinol production. However, some constraints were witnessed during mid-February as the global supplies tightened and several cargoes were diverted toward the western regions in anticipation of better sales. Demand surged in the domestic market due to better offtakes from the pharmaceutical industries and other downstream sectors. The price of Resorcinol in Chinese market was assessed around USD 1896 per tonne in March.
Resorcinol supplies in the region remained tight due to several plants operating at low efficiencies in the northwest European region amid the cold weather, followed by reduced imports from the US. Some buyers turned out to be more flexible towards the Asian supplies. However, the demand maintained an uptrend throughout the quarter as offtakes for the Pharmaceutical API grade surged in the region. Widened supply-demand gap surged the prices of Resorcinol in the European market during the quarter.
For the Quarter Ending December 2020
Marginal reduction in the global supply of Resorcinol was observed during the Q4 of 2020, due to the production deficit of Resorcinol in Europe and US region. This abrupt shortage however, provided an opportunity for Asian manufacturers to export in respective regions and expand their profit margins. Appreciable demand from Europe and US, resulted in surged import of Asian cargoes which ultimately lowered the inventories of Resorcinol in the Asia-Pacific Region. Most of the plants based in Asia operated normally but were unable to fulfill the demand throughout the quarter. CFR China offers were raised to around USD 14520 per tonne in mid-December, which are further expected to reach USD 14760 per MT by the next quarter.
Spot prices of Resorcinol in the region increased due to tight supply in the Q4 of 2020. Since the supplies of its key upstream material Benzene tightened, buoyed by the continuous surge in crude oil prices only several plants in Europe were able to increase their operating efficiencies to fulfill the demand during the fourth quarter. Demand for Resorcinol remained healthy throughout q4 with surge in consumption from downstream resin manufacturing units. Few plants induced temporary outages, due to planned maintenance activities.
The consistent increment in the prices of feedstock Benzene, resulted in a consistent uptick in Resorcinol prices in the US market, during the second half of Q4. The supply of upstream Benzene tightened towards the end of the quarter, due to spike in demand from resin sector. Skyrocketing crude oil prices and surged demand from downstream sectors led to a considerable hike in Resorcinol prices as well as the imports from the Asian region.