For the Quarter Ending March 2024
North America
In the first part of 2024, the North American Resorcinol market experienced a period of change with notable price swings. Initially, prices climbed steadily due to robust demand from both exporting and importing regions, which drove up production costs. This heightened demand was driven by substantial orders from market players aiming to meet the increasing market requirements. However, by February, prices took a sharp downturn. This decline was attributed to excessive stockpiling by domestic manufacturers and local suppliers, along with weakened demand from downstream industries and reduced import opportunities.
The downward price trend was also influenced by concerns of oversupply, as decreased demand both domestically and internationally resulted in higher inventories in exporting countries. US market participants adjusted their prices to stay competitive. Reduced freight charges also played a role in creating a weaker and more consolidated market environment. Furthermore, the decrease in raw material prices, notably benzene and sulfuric acid, impacted Resorcinol manufacturing costs, adding a layer of complexity to pricing dynamics.
Asia
The APAC region's Resorcinol market in Q1 2024 has experienced a mix of price changes influenced by various factors. The overall trend for Resorcinol pricing in the region has been a steady depreciation, with some fluctuations observed in specific countries.
In China, the market has seen price changes, with quarterly prices depreciating by 1.72% in March 2024, recorded at USD 4250/metric ton FOB Shanghai. In Q1, the Chinese Resorcinol market experienced a decline in prices after initially showing a slight upward trend. This drop was influenced by various factors, including the Spring Festival and Lunar New Year closures, labor shortages in Resorcinol-producing factories, and surplus Resorcinol supply. To clear inventories before the holidays, suppliers adopted aggressive pricing strategies with significant discounts. Additionally, logistical disruptions and upstream dynamics like sulfuric acid supply also impacted Resorcinol prices. As the market reopened in March, there was an excess of Resorcinol supply, leading suppliers to further lower prices to meet destocking goals. Normalization of freight charges and increased trade activities in March due to reduced charges heightened market competition, contributing to the continued pricing decline.
In Japan, prices initially decreased due to the devaluation of the Japanese yen against the USD. There was an excess supply of Resorcinol, leading suppliers to lower prices to clear surplus inventory by offering discounts for bulk purchases. Freight charges normalized, reducing costs. However, prices increased in February due to increased demand and limited inventories, prompting price hikes. Production slowed during the Japanese New Year celebrations in January, causing supply constraints. After the holiday season, production increased, leading to higher costs and supporting prices. In Japan, the market has seen quarterly price depreciation of 0.22%, with prices recorded at USD 4575/metric ton FOB Tokyo.
Europe
In the first quarter of 2024, the European Resorcinol market went through a dynamic period marked by significant price fluctuations. Initially, prices rose steadily due to strong demand from both exporting and importing regions, leading to higher production costs. This increased demand was fueled by large orders from market players aiming to meet the rising market needs. Also, replenishment activities in the domestic market was the another reason that supported the upward trend. However, by February, prices sharply declined. This drop was attributed to excessive stockpiling by domestic manufacturers and local suppliers, along with weakened demand from downstream industries and reduced import prospects.
The downward price trend was also influenced by concerns of oversupply, as decreased demand both domestically and internationally led to higher inventories in exporting countries. European market players adjusted their prices to stay competitive. Lower freight charges also contributed to a weaker and more consolidated market landscape. Additionally, the depreciation in raw material prices, particularly benzene and sulfuric acid, impacted Resorcinol manufacturing costs, adding complexity to pricing dynamics.
For the Quarter Ending December 2023
North America
In the last quarter of 2023, the North American Resorcinol market witnessed notable price fluctuations, signaling a downward trajectory throughout the period. Prices initiated the quarter with a steady incline but experienced a significant decline by the quarter's conclusion. This upswing was primarily fueled by a consistent demand for Resorcinol, prompting numerous manufacturers to expand their production capacities.
However, the amalgamation of heightened production costs and increased demand led to elevated product prices. Additionally, decreased freight charges contributed to a fragile and consolidated market. Moreover, raw material prices underwent a substantial depreciation, resulting in a reduction of Resorcinol manufacturing costs. Market participants observed that procurement volumes from downstream industries did not exhibit significant improvement, deepening concerns among manufacturers.
As November commenced, prices plummeted due to excessive stockpiling by domestic manufacturers and local suppliers. Feeble demand for Resorcinol persisted in downstream industries, and diminished import prospects, stemming from reduced domestic and international market demand, exerted pressure on existing inventories in exporting countries. This created an oversupply, prompting market players to reduce prices in the exporting region. The North American region, being a major importer, mirrored this price trajectory to sustain competitiveness.
Asia
In the APAC region, the Resorcinol market during the fourth quarter of 2023 (Oct to Dec) saw notable influences on both market dynamics and pricing. The concluding Resorcinol price in India for the quarter, recorded at USD 5885/MT Ex-Mumbai, reflected an average quarterly decrease of -1.00%. The market faced constrained growth primarily due to weakened demand in downstream industries and diminished export opportunities. Consequently, the domestic market underwent consolidation, resulting in a decline in prices. Challenges in the supply chain were evident in the Indian market, as manufacturers struggled to meet rising demand, leading to a moderate to high supply situation. Demand remained at a low to moderate level, marked by cautious procurement practices and limited offtakes from end-users. The market also witnessed inventory accumulation as suppliers aimed to replenish stock. This decrease in demand could be attributed to domestic manufacturers and local suppliers excessively stockpiling, fostering hesitancy in placing substantial orders. Furthermore, the market encountered hurdles stemming from reduced export prospects and declining international demand. In the Indian Benzene raw material market, lower prices were noted due to decreased input costs, resulting in reduced manufacturing costs for Resorcinol. With active manufacturing across the nation, finished stock inventories remained high, leading manufacturers to reduce their offers. Despite this, procurement volumes from downstream industries did not show significant improvement, amplifying market concerns. On the upstream side, limited cost support from stagnant Benzene prices characterized the given timeframe. Overall, the period did not witness major supply-chain bottlenecks, and freight rates remained low. The Indian market experienced a price decrease due to excessive stockpiling and diminished export prospects.
Europe
In the fourth quarter of 2023, the European Resorcinol market experienced significant price fluctuations, indicating a downward trend throughout the quarter. Prices began the quarter with a stable increase but depreciated significantly by the end of Q4. This rise was primarily driven by a consistent demand for Resorcinol, leading many manufacturers to expand their production capacities. However, the combination of heightened production costs and increased demand resulted in higher product prices. As November commenced, prices dropped due to excessive stockpiling by domestic manufacturers and local suppliers. Weak demand for Resorcinol persisted in downstream industries, and reduced import prospects, stemming from decreased domestic and international market demand, added pressure on existing inventories in exporting countries, causing an oversupply and prompting market players to reduce prices in the exporting region. The European region, being a major importer, mirrored this price trajectory to maintain competitiveness. Additionally, lower freight charges contributed to a weak and consolidated market. Furthermore, raw material prices experienced a significant depreciation, leading to a reduction in Resorcinol manufacturing costs. Market participants noted that procurement volumes from downstream industries did not show significant improvement, deepening concerns among manufacturers.
For the Quarter Ending September 2023
North America
During the third quarter of 2023, the Resorcinol market in the United States experienced a drop in prices. This decrease can be attributed mainly to a decline in the overall demand for Resorcinol during that period, resulting in a reduction in market prices. Various factors contributed to this price decline, including decreased demand from the food and beverage industry, a slowdown in the oil and gas sector's demand, and an increase in the Resorcinol supply. Furthermore, as the primary importer of Resorcinol, the United States was influenced by declining prices in exporting countries. Another factor contributing to the price decrease is the lower costs of phenol, a crucial raw material in Resorcinol production. Phenol prices were low due to a range of factors, including fluctuations in global supply and demand. Consequently, the reduced phenol costs directly impacted the expenses associated with Resorcinol production, resulting in an overall price decrease. Additionally, recent developments in trade, along with a significant reduction in sea freight costs and a reduction in port congestion, have led to cost reductions that have affected market dynamics. The presence of domestic supply and reduced demand both domestically and internationally exerted downward pressure on Resorcinol prices. The global economic slowdown has led market participants to exercise caution in placing bulk orders, and speculators have been actively trading Resorcinol futures in anticipation of further price declines, which has also contributed to the overall price reduction.
Asia-Pacific
In the third quarter of 2023, the Asia-Pacific Resorcinol market witnessed a general decline. In July, prices remained stable due to steady demand from downstream industries. Despite mixed demand, buyers kept small inventories of standard-sized materials with quick delivery options. Both domestic and international suppliers didn't receive any new inquiries. Indian suppliers' ability to export was significantly affected by uncertain economic conditions in China and the USA, which had a major impact on global trade. Consequently, the market's outlook became less optimistic. Adding to the complexity, suppliers had significant Resorcinol stockpiles in storage, leading them to adjust price quotes to speed up product turnover. Additionally, some market participants reduced their inventories to improve cash flow, further contributing to the drop in Resorcinol prices. This price decrease can also be attributed to the lower costs of phenol, a crucial raw material in Resorcinol production. Phenol prices themselves were on the lower side due to various factors, including global supply and demand fluctuations. Consequently, the reduced phenol costs directly affected Resorcinol production expenses, leading to an overall price decline. In the third quarter of 2023, the Purchasing Managers' Index (PMI) for the Indian manufacturing sector stood at 57.5, indicating continued expansion but at a slower pace compared to the previous quarter. This slowdown was mainly due to a decrease in new orders and output. By the end of Q3, Resorcinol prices were recorded at USD 6076.16 per metric ton, reflecting a quarterly average decrease of 2.59%.
Europe
In the third quarter of 2023, there were notable price fluctuations in the European Resorcinol market. These fluctuations were primarily driven by a decrease in the overall demand for Resorcinol during that period, resulting in a reduction in market prices. This decline can be attributed to several factors, including weakened demand from the food and beverage industry, a slowdown in demand from the oil and gas sector, and an increase in the supply of Resorcinol. Furthermore, as Europe is a major importer of Resorcinol, its prices were influenced by the decreasing prices in exporting countries. In addition to these factors, recent developments in tariffs between China and Europe, as well as a significant reduction in sea freight congestion, have played a role in shaping the market dynamics by reducing costs. Another contributing factor to the price decrease is the lower costs of phenol, a crucial raw material in Resorcinol production. Phenol prices themselves were on the lower side due to various factors, including global supply and demand fluctuations. Consequently, the reduced phenol costs directly impacted the expenses of Resorcinol production, leading to an overall price decline. The availability of domestic supply and reduced demand in both domestic and international markets also put downward pressure on Resorcinol prices. The global economic slowdown discouraged market participants from placing large orders, and speculators actively engaged in selling Resorcinol futures in anticipation of future price declines, which further contributed to the overall price decrease.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, Resorcinol prices in the US market fell significantly due to sporadic fluctuations between supply and demand during the month. Retail sales fell due to high inflation. Retailers have also struggled with bloating inventory they ordered to meet surges in demand during the outbreak, despite stagnant demand. Falling fares were another factor contributing to the slowdown in development. Market trading fundamentals were impacted by weak demand and high inventories. In addition, the downward trend in prices further intensified due to the global drop in phenol raw material prices. Imports are declining as US companies struggle to dispose of large inventories. The most important container port in the United States also saw a decline in the volume of imports. Moreover, despite stagnating demand, retailers are facing inflation in ordered inventory to meet increased demand during the pandemic and possible shortages in the future.
Asia
The market price of Resorcinol declined significantly in the second quarter of 2023, driven by weak domestic and international demand. During the quarter, the PMI fell below 50 points, suggesting that the manufacturing sector is contracting. Due to large inventories of Resorcinol, suppliers have had to reduce prices to reduce existing inventories. In addition, this price trend was mainly due to a decrease in sales in final consumption areas, and there were no new inquiries from domestic and overseas suppliers. This also contributed to the price drop. China's import and export activities were mixed. Exports decreased by 3.9% year-on-year, while imports increased by 1.9%. China CFR Shanghai Resorcinol, the price chart market, showed a downward trend in prices as negotiations progressed. Meanwhile, the Chinese government has taken steps to cool the economy, including raising interest rates and tightening the money supply. In addition, market sentiment continued to be subdued due to declining buyer demand, lower sales from downstream industries, and a lack of new inquiries from domestic and foreign suppliers. Some market participants are reducing inventories to reduce inventories and improve cash flow.
Europe
In the second quarter of 2023, the demand for Resorcinol decreased, leading to a decline in market prices. German Resorcinol prices are trending downward as demand from downstream sectors and imports from exporting countries such as China and India slow down. The supply of Resorcinol is increasing due to the expansion of production capacity in India, the world's largest Resorcinol producer. This has increased the supply of Resorcinol on the global market. However, the slowdown in the global economy has reduced demand for Resorcinol. Also, speculators have sold Resorcinol futures in anticipation of future price declines, putting downward pressure on prices. Tariffs between China and the West Coast of the United States have recently returned to pre-pandemic levels, significantly easing congestion, and as a result, ocean freight prices have also fallen, affecting general market conditions. The government has also eased some restrictions on the importation of generic drugs, increasing the availability of generic versions of Resorcinol. Resorcinol price performance is heavily influenced by weak buying momentum and overstock.
For the Quarter Ending March 2023
North America
The first quarter of 2023 saw no change in the price of Resorcinol in North America due to persistent demand from the pharmaceutical and disinfection businesses. Resorcinol imports from Asian nations were hampered by port congestion at the start of the quarter. Due to the increased demand in the disinfection sector, feed prices also climbed in the area. The supply of Resorcinol in the US market fluctuated during Q1 2023 between being balanced and low. In the first half of the fourth quarter, a significant plant turnaround phase was completed. However, prices soared in the second half of the quarter when Resorcinol import costs rose. The industrial infrastructure along the US Gulf Coast is likewise being rebuilt.
APAC
In Q1 2023, Resorcinol prices dropped in the Asian market. The price of benzene reduced in the Asian market as trade activity rose and raw material demand decreased, which in turn caused a decrease in the pricing of the upstream Resorcinol market. The market remained stable because there was not much demand or supply. The pricing of downstream chemicals like benzene and Resorcinol was delayed due to the decline in market prices for energy and crude oil. Along with an increase in demand from the furniture and pharmaceutical industries, upstream resin demand also climbed. Prices decreased because there was less demand from end-user industries throughout the quarter. Resorcinol prices were estimated to be around USD 7373.84/MT for Ex-Mumbai in March, near the end of the quarter.
Europe
Resorcinol prices fluctuated throughout Europe in the first quarter of 2023 because of a scarcity and stable market. In the first month of this quarter, demand for Resorcinol increased in the pharmaceutical industry's downstream sectors. Due to a shortage of Resorcinol in the region and rising prices through the second month, some facilities in northwest Europe continued to operate at low-efficiency levels during the cold season. Due to sustained demand and adequate inventory, prices slightly declined in the final month of the quarter. Due to a growing supply-demand imbalance, Resorcinol prices in the European market were unstable during the quarter.
For the Quarter Ending December 2022
North America
Due to ongoing demand from the pharmaceutical and disinfection industries, Resorcinol prices in North America remained stable in the fourth quarter of 2022. Due to port congestion at the beginning of the quarter, imports of Resorcinol from Asian countries were affected. Feed prices also increased in the area because of the increase in disinfection sector demand. During Q4 2022, the supply of Resorcinol in the US market fluctuated between being balanced and low. A large plant's turnaround phase came to an end in the first half of the fourth quarter. However, as import costs for Resorcinol increased in the second half of the quarter, prices increased. Along the US Gulf Coast, the industrial infrastructure is also being restored.
APAC
In Q4 2022, Resorcinol prices dropped in the Asian market. The price of benzene decreased in the Asian market as trade activity picked up and raw material demand decreased, which resulted in a decrease in the upstream Resorcinol market pricing. The market remained stable because there was not much demand and little supply. The pricing of downstream chemicals like benzene and Resorcinol was delayed because of the decline in market prices for energy and crude oil. Along with an increase in demand from the furniture and tyre industries, downstream resin demand also rose. Prices decreased during the quarter because of a fall in demand from the end-user sectors. Resorcinol prices were estimated to be around USD 8429.73/MT for Ex-Mumbai in December, near the end of the quarter.
Europe
Due to a shortage, Resorcinol prices increased marginally in Europe in the fourth quarter of 2022. The downstream industries of construction and automotive saw an increase in demand for Resorcinol this quarter. Due to several plants in northwest Europe running at low-efficiency levels during the cold season and a reduction in US imports, Resorcinol supplies in the area continued to be short. Several companies in northwest Europe continued to function at low-efficiency levels due to the cold and a decrease in US imports, so supplies in the area remained short. The quarter saw a rise in Resorcinol costs in the European market due to a rising supply-demand imbalance.
For the Quarter Ending September 2022
North America
The third quarter of 2022 saw no change in resorcinol prices in North America due to persistent demand from the pharmaceutical and disinfection sectors. Feed costs in the area rose in response to the growth in disinfection industry demand, and at the beginning of the quarter, port congestion in the region had an influence on the imports of Resorcinol from Asian nations. Resorcinol supply in the US market alternated between being balanced and scarce during Q3 2022. The turnaround phase for a big plant ended in the beginning half of the fourth quarter. However, prices climbed because of rising import costs for Resorcinol in the second half of the quarter. The restoration of the industrial infrastructure along the US Gulf Coast is also taking place. Towards the end of the quarter, the prices for Resorcinol were assessed at around USD 7261/MT for the USA in July.
APAC
In Q3 2022, resorcinol prices dropped in the Asian market. When trade activity restarted, and raw material demand slowed, the price of benzene dropped in the Asian market, which caused a drop in the upstream resorcinol market pricing. Due to little demand and a small supply, the market stayed constant. The market prices for energy and crude oil also dropped, which slowed down the pricing of downstream chemicals like benzene and Resorcinol. Additionally, demand from the downstream resin industry increased along with demand from the furniture and tire industries. Due to a decline in demand from the end-user sectors, prices fell throughout the quarter. Resorcinol prices were estimated to be around USD 6969/MT for China in September, near the end of the quarter.
Europe
Resorcinol costs climbed slightly in Europe during the third quarter of 2022 because of limited supplies. This quarter, demand for Resorcinol increased in the construction and automotive downstream sectors. Resorcinol supplies in the region remained scarce as a result of a number of facilities in northwest Europe operating at low-efficiency levels throughout the cold season and a decline in US imports. Supplies in the region remained scarce as several industries in northwest Europe operated at low-efficiency levels because of the cold weather and fewer US imports. A growing supply-demand imbalance increased Resorcinol prices in the European market during the quarter. Prices for Resorcinol were estimated to be around USD 7865/MT for the USA in September toward the end of the quarter.
For the Quarter Ending June 2022
North America
Resorcinol prices remained stable in North America during the second quarter of 2022 because of sustained demand from the pharmaceutical and disinfection industries. With the increased demand from the disinfection industries came an increase in feed prices in the region, and at the start of the quarter, port congestion in the area impacted the supplies of Resorcinol from Asian countries. During Q2 2022, resorcinol supplies on the US market fluctuated between balanced and scarce. The first half of the fourth quarter saw the end of the turnaround period for a significant plant. But because Resorcinol import prices rose in the second half of the quarter, prices increased by over 2%. Along with the recovery of the industrial infrastructure along the US Gulf Coast, the overall market outlook in North America improved.
APAC
Resorcinol costs decreased in the Asian market in Q2 2022. The price of benzene decreased in the Asian market, which led to a decline in the upstream resorcinol market prices when trade activity resumed, and raw material demand slowed. Due to the reappearance of Covid, lockdowns have been established in various Asian nations, restricting travel and creating a tight supply and demand situation. The market remained stable due to slow demand and limited supply. Additionally, the market prices for energy and crude oil decreased, slowing down downstream chemicals like benzene and resorcinol pricing. Resorcinol prices increased with a monthly tendency of 0.8 percent in May. In addition, as demand from the tyre and furniture industries expanded, so made demand from the downstream resin sector. This created a competitive resorcinol market with an increasing price trend.
Europe
Due to tight supplies, Resorcinol prices remained constant in Europe during the second quarter of 2022. This quarter, the downstream construction and automotive industries saw a rise in demand for Resorcinol. Due to multiple factories in northwest Europe running at low-efficiency levels during the cold season and decreased US imports, resorcinol supplies in the area remained scarce. Due to multiple factories in northwest Europe working at low efficiency due to the cold weather and lower US imports, supplies in the area remained scarce. During the quarter, a widening supply-demand mismatch drove up Resorcinol costs in the European market.
For the Quarter Ending March 2022
North America
Prices of Resorcinol remained firm in North America during the first quarter of 2022 following consistent demand from the pharmaceutical and disinfectant industry. However, feed prices increased in the region during Q1. At the beginning of the quarter, port congestions in the region affected the supplies of Resorcinol from importing countries Asian countries amid the increased demand from disinfectant industries. The values remained stagnant in the mid-quarter. However, in the 2nd half of the quarter, the prices increased by nearly 2% due to increased import values of Resorcinol.
Asia Pacific
Resorcinol prices remained stagnant in the Asian market throughout the 1st quarter of 2022. The demand from the downstream Pharma sector remained stagnant with consistent supply in the domestic market. However, the demand from the disinfectant industry remained volatile throughout the period. The supplies to the domestic market and importing countries were adequate and consistent according to the demand. The prices of Resorcinol settled at USD 10899.66 per tonne, at the end of quarter 1 of 2022, in the Indian market.
Europe
During Q1of 2022, market sentiments for Resorcinol remained firm, and the prices remained strong in the European market. The demand from the pharma sector was stagnant. However, the demand was consistently increasing from the disinfectant segment. Also, high freight costs from the past months further escalated the cost of the imported material across the European market. The import volumes of Resorcinol were stable in the 1st half of the quarter from Asian countries but decreased during the second half due to globally disrupted supply chain. Resorcinol prices in Europe witnessed fluctuations by nearly 3-5% throughout Q1-2022.
For the Quarter Ending December 2021
North America
During the fourth quarter of 2021, the prices of Resorcinol increased effectively across the North American region. In terms of demand, offtakes remained strong from the downstream industries as the hiking rates in the domestic market affected several U.S. sectors along with the automotive industry. Supply chain disruptions and soaring freight charges continued to bother the Resorcinol market sentiments in the 4th quarter. The US is usually a net importer of upstream Benzene, however its exports to China fell by 83% month on month in November. China is the main destination for U.S. exports, followed by Canada.
Asia Pacific
In the Asia Pacific region, the pricing trend of Resorcinol demonstrated an upward trajectory in the 4th quarter of 2021. In India, the prices of Resorcinol shot up from USD 9694.87/mt to USD 10962.44/mt CFR JNPT from October to November. The consumption volumes remained strong throughout the quarter due to the consistent demand from the downstream leather and resin sector. The optimism prevailing from sturdy values of upstream also provided an appropriate surge to its prices in q4 2021. Skyrocketed freight costs and lack of shipping containers further supported the pricing trend of Resorcinol in the Indian domestic market.
Europe
In Q4 of 2021, The economy in the European region remained on the recovery path due to the prolonged supply bottlenecks, rising commodity prices, and the emergence of the Omicron variant of the coronavirus. According to the survey of European economic activity, the growth momentum remained weak at the beginning of the fourth quarter, particularly in the manufacturing sectors. A hike in demand for Resorcinol was observed in this quarter from the downstream construction and automotive sector.
For the Quarter Ending September 2021
North America
In the third quarter 2021, Resorcinol market witnessed an upward trend backed by the robust demand from the automobile sector after the recovery in the regional commercial activities. In addition, in August end, many manufacturers were compelled to shut down their production units as a repercussion of the Ida hurricane that made landfall in the Gulf Coast of USA which impacted the production rates and hampered the supply chain in the region. It resulted into the constrained supply of the product in the region which led to the increment in the values of Resorcinol in this timeframe.
Asia Pacific
In Q3 2021, Resorcinol market experienced an upward rally throughout the third quarter backed by the firm demand from the tire industry after the resurgence of automotive industry in the post pandemic period. In India, Resorcinol values remained firm buoyed by consistent increment in the offtakes from the downstream manufacturers particularly from leather and resin industries. Besides, soaring upstream values also contributed to the surge in the prices of Resorcinol in this timeframe. Additionally, exorbitant freight charges and shortage of shipping containers also sent ripples to the Resorcinol prices in India. Consequently, Resorcinol prices reached USD 9624.45 per MT CFR JNPT in September, showcasing continues increment since July.
Europe
In Europe, Resorcinol market encountered supply tightness and sturdy demand from the downstream construction and automotive sector. Due to the supply chain disruption caused by the arrival of Ida hurricane in US and the congestion on the several ports in China, prices of Resorcinol abruptly rose in the latter half of the quarter. However, market sentiments remained high throughout the third quarter. It is anticipated that Resorcinol prices will gain stability in the upcoming quarter once the logistic issues resolve.
For the Quarter Ending June 2021
North America
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.
Asia Pacific
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.
Europe
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
North America
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.
Asia-Pacific (APAC)
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.
Europe
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
North America
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.
Asia
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.
Europe
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.
