Weak Demand puts Asian Unsaturated Polyester Resin Prices Under Pressure

The Unsaturated Polyester Resin market in Asia has experienced a downward price trend as June 2024 draws to a close. This trend is driven by increased supply pressures and reduced downstream demand, particularly from the construction sector. The weakening demand has heightened market risk sentiment. Futures saw a significant drop at the beginning of the month, and fell further as the month ended.

The Asian chemical sector is notably weak, with the Unsaturated Polyester Resin market under significant downward pressure. Downstream industries are resisting high prices, causing a loosening in domestic spot market quotations for Unsaturated Polyester Resin. Terminal enterprises are optimising inventory based on rigid demand, and weak macroeconomic sentiment has resulted in an average market performance for Unsaturated Polyester Resin recently. The Unsaturated Polyester Resin prices lowered in the regional market this week amid ample stock availability as traders sell at low prices, and high industry operating levels are increasing supply pressure.

Recent insights reveal that manufacturers have increased their operating loads, leading to a rise in market supply. While demand for polymers remains sluggish, demand from the construction sector has seen a minor positive change, prompting purchases based on necessity. The futures market price has declined, with middlemen actively shipping. New orders from Unsaturated Polyester Resin manufacturers have been average, and overall inventory has increased. Manufacturers are more flexible in accepting orders and shipping, resulting in lower prices for new orders. Most players in the Unsaturated Polyester Resin industry are pessimistic about the market outlook, and the domestic spot market is expected to remain weak in the short term.

Demand for Unsaturated Polyester Resin has rapidly declined, leading to an accelerated accumulation of inventory. As of June 24, 2024, the total inventory of domestic manufacturers has increased. In the downstream construction sector, daily output has remained stable, but inventory levels continue to rise. In North China, shipments have slowed due to low-priced sources, causing a noticeable inventory build-up. In Central China, poor downstream trading atmosphere and sales have led to an increase in Unsaturated Polyester Resin inventory.

As per ChemAnalyst, future attention on Unsaturated Polyester Resin prices will concentrate on the terminal real estate market and capital conditions. In certain areas of the South China market, rainfall, and rigid demand have led to average shipments and a rising overall inventory. While supportive real estate policies have boosted future demand expectations for Unsaturated Polyester Resin, export demand in the APAC region has not shown significant improvement.