During the month of March 2025, the U.S. and China's Petroleum resin markets followed differing trends in price direction influenced by geographically divergent supply trends and downstream demand variability. With the restoration of post-holiday demand, prices in China increased moderately, while the U.S. market saw a slight decline due to high inventory levels and slow end-user activity.

These divergent trends are indicative of the changing macroeconomic and sectoral conditions in the two large economies, where procurement sentiment and logistics pressures continue to influence short-term price movements for Petroleum Resin.

In China, prices of Petroleum Resin increased by 0.5% in March 2025, underpinned by a steady rebound in industrial activities after the Spring Festival holidays. Demand from major downstream industries like paints, coatings, and adhesives picked up as seasonal production resumed, underpinning consumption levels. Though raw material prices eased amidst declining global crude oil prices, the market failed to notice any aggressive stock-building, and sellers continued with wary pricing tactics.

Confidence in the market was also supported by improving trends in major economic indicators like the Industrial Consumption Index and Building Material Demand Index, indicating strengthening end-use sector activity. Consequently, although some consumers restricted purchases to current needs, overall sentiment remain positive for Petroleum Resin market.

In contrast, a climate of abundant supply and weak demand from the downstream building sector caused the price of Petroleum Resin in the U.S. market to drop by 0.8% in March. The local market was well-supplied during March, supported by robust import volumes from Asia. Early-month shipment frontloading, as a precaution against potential tariff increases, combined with lower world freight rates, reduced landed costs for Petroleum Resin and temporarily eased logistics challenges. However, these gains were offset by longer lead times resulting from customs delays with delivery windows extending to six months, according to reports.

On the demand side, residential construction activity continued to be weak, while non-residential construction showed modest hiring momentum, but this did not translate into a large amount of Petroleum resin consumption. Overall economic uncertainties, such as inflation and lopsided infrastructure investment, led to prudent buying habits, resulting in reduced pull from downstream industries.

In the future, price movement in petroleum resin in both regions is likely to stay closely connected with seasonal construction seasons, developments in trade policy, and crude trends worldwide.

Although suppliers may continue to be cautious about overproduction, China's expected industrial growth and ongoing infrastructure investment could offer upward support for Petroleum Resin. In the meantime, unless there is a noticeable increase in home development or policy-driven infrastructure activity, sentiment in the U.S. Petroleum Resin market might remain low.

Both markets are also at danger from additional tariffs and changing global trade alignments, which might have an impact on import policies and price stability into the second quarter of 2025.