The Unsaturated Polyester Resin (UPR) market is likely to exhibit a weak performance in Asia during September 2024, with prices continuously fluctuating and pointing towards a the ground. This was largely due to the persistent drop in the futures downstream market, which influenced the UPR market to follow the same downward trend. Additionally, pressure from supply and demand contributed to the weak market conditions.

Demand from the downstream market remained weak since August 2024, providing little support to drive the UPR market, which led to sluggish trading activity. The industry's operating rates stayed stable, with no significant changes in supply levels. Manufacturers maintained average inventory levels, facing minimal inventory pressure. However, the absence of any positive market outlook created a cautious, wait-and-see attitude among industry participants. Downstream construction sector procurement remains focused on the low enthusiasm amongst domestic buyers and a generally sluggish market atmosphere in the regional market amid Typhoon Yagi in Vietnam.

Moreover, Typhoon Yagi, along with subsequent flooding and landslides, has resulted in a decrease in regional UPR demand and increased supply chain-related disruptions. The supply chain and logistics sectors were hit the hardest, with several businesses experiencing severe or moderate disruptions. Transportation was particularly affected, with over half of companies in manufacturing, retail, and distribution reporting interruptions. Warehousing and inventory also faced challenges in the Asian UPR market.

Meanwhile, the intra-Asia freight rates continued to decline, with average spot rates on most container trade lanes weakening further during the first two weeks of September indicating an ease in the UPR import prices.

In August, the overall price of the raw materials in the UPR market experienced a slight decline, reflecting weak cost support and continued consumption during the off-season. Downstream production remained sluggish, with limited procurement activity and minimal demand to support the UPR market. Despite these challenges, the overall market for UPR remained relatively stable. As of the end of August, Wanhua Yantai had stopped feedstock Maleic Anhydride production, Yizheng Chemical Fiber had resumed production, and Qingdao Refining and Chemical had increased production impacting the UPR supply side.

As per ChemAnalyst, A decline in the UPR market is expected amid low feedstock Maleic Anhydride costs along with a dip in the upstream crude oil prices. Cautious market operations are anticipated. The UPR market is anticipated to remain mainly weak and stable, with limited procurement in the feedstock Maleic Anhydride market. As a result, It is expected that the UPR market will mainly consolidate in Asia shortly.