The global Resorcinol market experienced a substantial price surge in September 2024, primarily driven by the escalating costs of raw materials, particularly sulfuric acid, alongside supply chain disruptions and robust demand. The Resorcinol price hike followed bullish trends in China's sulfuric acid market. This rise defied typical seasonal expectations, as demand for sulfuric acid usually declines after the plantation season, which lowers the need for sulfuric acid-based fertilizers. However, the Resorcinol market was buoyed by rising feedstock sulfur prices, increased production costs, and higher-than-expected demand from phosphate producers, which kept sulfuric acid prices elevated.

Phosphate plants in China sustained high operational rates during the month, which offset the seasonal drop in fertilizer demand. This, coupled with strong overseas demand, supported the bullish sentiment in the sulfuric acid market. Domestic refiners also contributed to the price increase by raising their prices, further tightening supply. Although demand from the agrochemical sector remained moderate, the heightened activity among phosphate producers drove sulfuric acid demand. Additionally, the widening spread between sulfur and sulfuric acid prices indicated that the bullish market sentiment would likely continue.

Compounding the Resorcinol market situation, China's worst typhoon in 75 years caused severe delays in shipping operations. Vessels faced berthing delays of 36 to 60 hours, creating transportation bottlenecks, which in turn increased freight costs and led to inventory shortages. This further exacerbated the supply chain disruptions, raising lead times for Resorcinol deliveries and adding to the inflationary pressures on the market.

The rising sulfuric acid prices had a direct impact on the Resorcinol market. With September marking the end of plant shutdowns, buyers engaged in anticipatory buying and strategic restocking, further driving up demand. Fears of supply shortages and potential production delays heightened competition among buyers, resulting in a competitive procurement environment for Resorcinol. Key downstream sectors, such as the automotive and adhesive industries, contributed to demand, particularly with the approach of the festive season and the onset of winter, spurring additional stockpiling activities.

Moreover, global logistics challenges and currency fluctuations, particularly the depreciation of the dollar against the Chinese yuan, added further strain on the supply chain. The increased import costs for buyers contributed to higher Resorcinol prices, as traders capitalized on the widening margins. The market remained resilient under these pressures, and prices stayed on an upward trajectory.

Looking ahead, the Resorcinol market is expected to remain under pressure in the near term as supply chain disruptions and high production costs persist. With China restricting fertilizer exports and the ongoing global logistics issues, the market will continue to navigate complex pricing dynamics. As key raw material costs and logistical factors evolve, market participants will be closely monitoring these developments to assess their impact on future pricing trends.