In November 2023, the global market experienced a notable decline in Resorcinol prices, primarily attributed to the decreased prices of its raw material, Benzene. This downward trend in petrochemical product prices was a consequence of the volatile consolidated prices of feedstock Crude oil across the globe. The reduced cost of Benzene was a key factor, driven by fluctuations in the crude oil market, coupled with a weakened demand outlook and ample inventories held by market players, which kept the Resorcinol prices weak.

The decrease in Crude oil prices has particularly impacted the petrochemical supply chain. In the past weeks, US crude oil inventories surged unexpectedly by 3.6 million barrels to 439.4 million barrels, surpassing analysts' estimates of a mere 1.8 million barrels increase. Concerns about demand in the Asian region have intensified, and market players are closely monitoring the situation. The growth in crude oil inventories has been consistent, raising apprehensions about the seasonal decline in demand in the United States, which has kept the Resorcinol market at ease.

Furthermore, the Organization of Petroleum Exporting Countries and its allies (OPEC+) are balancing production reduction agreements and market demand. Russia, a key player in this scenario, has made a strategic move by lowering oil export tariffs for the first time since July. This decision responds to the prevailing price ceilings in the West and the overall decrease in international oil prices. It reflects an effort to stabilize future oil exports amid the evolving market dynamics.

These changes' impact on the raw material benzene market has been palpable on Resorcinol prices globally. The spot market for Benzene in East China witnessed a marginal rise last Friday, driven by downstream customers seeking bargains for replenishment. However, the overall transaction pace remained subdued due to the influence of low-priced supply in the Shandong market, keeping the Resorcinol market feeble. Shandong Refinery's strategic decision to reduce prices and promote sales has contributed to improved market transactions.

Amid these developments, the pricing of Resorcinol has been intricately tied to the fluctuations in Benzene prices. The weakened demand for Benzene and Resorcinol in November can be attributed to various factors, including a global economic slowdown, reduced demand from the petrochemical industry, and heightened competition from alternative feedstocks such as naphtha. This confluence of factors has set the stage for a challenging market environment, impacting the trajectory of Resorcinol prices.

As market players navigate through these dynamics, the resilience and adaptability of the petrochemical industry will play a crucial role in determining the future trajectory of Resorcinol prices. With a careful eye on the evolving geopolitical and economic landscape, industry stakeholders are poised to make strategic decisions to mitigate risks and capitalize on emerging opportunities for Resorcinol in the global market.