In August 2024, global Petroleum Resin prices experienced a significant surge. This price escalation was primarily driven by the increasing costs of key raw materials, especially C9 Solvent, which led to higher production rates. The rise in raw material costs exerted additional upward pressure on Petroleum Resin prices. The situation was further compounded by ongoing supply chain disruptions and material shortages. As a result, the overall pricing for Petroleum Resin saw considerable upward momentum throughout the month.

In the North American market, Petroleum Resin prices surged by 1.2% in August 2024. This increase can be largely attributed to a widening gap between demand and supply. Strong domestic demand for Petroleum Resin, particularly driven by the automotive industry, has supported higher prices. The automotive sector, which had previously experienced modest performance, saw a notable rebound in car sales during the month. Notably, Toyota Motor reported a recovery in sales, driven by heightened demand for its Lexus models. Similarly, Ford achieved a 50% year-on-year increase in hybrid vehicle sales and a 29% rise in electric vehicle sales.

Further. the market faced severe disruptions due to port congestion in exporting countries. The active containership fleet was notably impacted by ongoing congestion and vessel diversions to the Cape route, with an increasing number of ships entering drydock. Despite the addition of 1.9 million TEUs of new capacity in the first seven months of the year, effective shipping capacity has remained constrained below 26 million TEUs since the beginning of the year, exacerbating supply chain challenges and contributing to the delayed exports and expensive imports leading to an overall increase in Petroleum Resin prices.

In like manner, the prices of Petroleum Resin surged in the Asian market with China being the most impacted region. The adverse weather conditions that China faced during this period, marked by frequent rainfall, thunderstorms, and typhoons following a harsh summer, severely impacted manufacturing activities. These disruptions were particularly notable, as China's manufacturing output fell to its lowest level in six months by August.

Demand for Petroleum Resin has exhibited notable fluctuations, primarily influenced by varying needs from key end-use industries, particularly the automotive sector. Petroleum Resin is utilized in critical applications such as adhesives, paints, and coatings. The inconsistency in demand stems largely from uneven growth in vehicle purchasing activity, which directly affects Petroleum Resin consumption. Market insights reveal that passenger vehicle sales in China experienced a decline for the fifth consecutive month in August 2024, decreasing by 1.1% compared to the previous year, totaling 1.92 million vehicles. Although this decline represents a slight improvement over July’s 3.1% drop, it underscores ongoing uncertainties within the automotive market that continue to impact Petroleum Resin demand.

According to ChemAnalyst's analysis, the Petroleum Resin market is expected to experience growth in the coming months, driven by seasonal demand increases and currently low inventory levels.