For the Quarter Ending December 2023
In the fourth quarter of 2023, the North American Unsaturated Polyester Resin market faced a bearish trend, marked by challenging operating conditions stemming from subdued demand both domestically and internationally. The lacklustre demand was attributed to an oversupply in the market, creating an imbalance.
As the year-end approaches, promotional sales may prompt destocking activities, potentially leading to a decline in product costs. Despite a gradual decline in the preceding month, Mexico witnessed stability in Unsaturated Polyester Resin GP prices, with consistent supply from traders meeting the country's requirements. The appreciation of the Mexican Peso by 3.43% against the USD in the first week of November 2023 added a stabilizing factor.
Notably, the Unsaturated Polyester Resin CFR Veracruz in Mexico experienced a significant decrease in prices compared to the previous quarter, with decrease in price during the second half of the quarter. The overall downturn in Unsaturated Polyester Resin, influenced by weak demand and merchant hesitancy, suggests a potential short-term decrease in the global market.
In the fourth quarter of 2023, Unsaturated Polyester Resin pricing in the European region experienced a notable downturn, primarily driven by weakened demand from downstream industries. The market conditions were characterized by an oversupply of Unsaturated Polyester Resin, contributing to a subdued demand environment. The diminished interest in the product can be traced back to the prevailing surplus in the market. Downstream sectors, particularly in automotive and construction, exhibited a cautious approach to procurement, opting for essential purchases only. Despite this challenging scenario, the European market maintained ample material availability to fulfil domestic requirements, providing a supportive backdrop for the Unsaturated Polyester Resin market. Germany, a key player in the region, witnessed a substantial decline in Unsaturated Polyester Resin prices. This decline can be attributed to factors such as customer reluctance, geopolitical uncertainties, and higher interest rates impacting overall demand. The market continued to grapple with the trend of offloading inventories, as industry players strategically managed stock levels in anticipation of the upcoming winter holidays. Contributing factors to the market dynamics included the prevalence of cheaper imports of PP from overseas, low production costs, and obstacles in trading activities attributed to the winter season.
The fourth quarter of 2023 (October to December) was a challenging period for the Unsaturated Polyester Resin market in the APAC region. One of the key factors that affected the market was the expensive imports from Malaysia and the UAE, which led to a rise in prices. The controlled supplies and positive price revisions by manufacturers contributed to the increase in prices. Additionally, the market performance in India stood out compared to other Asian nations, with the government investing in the wind energy sector under clean energy initiatives. During this quarter, there were no reported plant shutdowns in the APAC region. Focusing on India, the country experienced a stable demand for Unsaturated Polyester Resin throughout the quarter, with traders cautiously managing their inventories. In terms of pricing trends, the Unsaturated Polyester Resin CFR JNPT price in India for the current quarter is USD 1771/MT. Overall, the fourth quarter of 2023 witnessed a rise in prices due to expensive imports and controlled supplies. The market in India remained stable, but demand is expected to remain unchanged in December.
The fourth quarter of 2023 in the Middle East and Africa (MEA) Unsaturated Polyester Resin market unfolded with diverse trends. Several factors played pivotal roles in shaping market dynamics and prices during this period. While overall demand for the product remained steady both domestically and in the international market, a discernible decline in exports to major Asian importers, notably India, resulted in an overall supply decrease. Market players strategically managed their supplies, contributing to a moderately balanced supply situation. Cautious inventory management practices by traders further upheld stability in demand and supply dynamics. Notably, no plant shutdowns were reported within this timeframe, reflecting a resilient operational landscape. Among MEA countries, the United Arab Emirates (UAE) witnessed substantial shifts in Unsaturated Polyester Resin prices. Following consistent declines in previous months, prices in the UAE market marginally increased in November. This uptick was attributed to optimized cargo movements and the UAE's pivotal role in exporting the product to India. As of the current quarter, the price of Unsaturated Polyester Resin FOB Jebel Ali in the UAE stands at USD 1730/MT, with no significant percentage change compared to the preceding year's fourth quarter.