For the Quarter Ending December 2024
North America
In Q4 2024, Petroleum Resin prices in the North American market saw a notable increase, driven by a combination of supply constraints and elevated freight rates. The supply side faced significant challenges due to logistical disruptions, particularly in key trade routes such as the Panama Canal and the Mississippi River.
Low water levels in these critical waterways led to extended delivery times and delays, further exacerbating the supply shortage. Concurrently, shipping costs from Asia to North America surged, partly due to the anticipation of potential labor strikes on the U.S. East and Gulf coasts and a compressed post-holiday shipping schedule. These factors contributed to a tightening of supply, sustaining upward pressure on prices.
On the demand side, while the construction sector showed some seasonal slowdown, overall demand remained relatively steady, particularly driven by the automotive sector. Strong performance in the U.S. automotive industry, especially in truck and hybrid vehicle production, helped maintain a steady demand for Petroleum Resin, which is widely used in manufacturing lubricants, coatings, and vehicle components. These factors combined to push prices higher despite an otherwise moderate demand environment.
Asia-Pacific
In Q4 2024, the Asia-Pacific Petroleum Resin market witnessed an upward price trend, largely driven by a combination of supply-side constraints, rising input costs, and moderate demand recovery in key sectors across the region. In China, logistical disruptions, including heightened port congestion at major hubs like Shanghai and Ningbo and delays caused by Typhoon Kong-Rey, strained the supply chain despite stable manufacturing activity and high capacity utilization rates. Traders pre-emptively raised prices to offset escalating freight costs during the holiday season and longer trade routes. Demand in China was mixed, with the construction sector showing modest growth driven by key players like China Railway Group, while the automotive sector recorded robust gains, with passenger vehicle sales surging by 11.2% year-on-year in October, supported by rising new energy vehicle (NEV) sales. Similarly, in India, Petroleum Resin prices remained elevated due to constrained supplies and increased feedstock costs, alongside moderate demand from construction and infrastructure projects. The Indian automotive sector also contributed to demand, with steady growth in passenger vehicle production and sales. Across the Asia-Pacific region, while real estate and construction sectors exhibited uneven recovery, the automotive industry emerged as a key driver, highlighting its significant role in shaping the market dynamics for Petroleum Resin during the final quarter of 2024.
Europe
The price of Petroleum resin in the European market remained subdued during the final quarter of 2024, reflecting a stable balance between supply and demand. Inventories were sufficiently stocked to meet consistent consumption needs, particularly from the automotive sector, which remains the primary end-user of Petroleum resin in paints, coatings, and lubricants. Although global automotive production has shown signs of growth, European and North American markets have been constrained by slower vehicle sales and production challenges, partly driven by the ongoing transition toward electrification. Germany emerged as an exception, maintaining steady automotive production, supported by its strategic push toward electric vehicle manufacturing. This steady demand has helped stabilize the German Petroleum resin market, allowing it to absorb minor cost fluctuations without significant disruption. Nevertheless, European manufacturers continued to face challenges, including a prolonged destocking cycle, geopolitical uncertainties, and a challenging economic climate, all of which led to reduced production activity. Despite these headwinds, stable inventories and steady automotive demand have provided a favorable outlook for the European Petroleum resin market.
For the Quarter Ending September 2024
North America
In the third quarter of 2024, the North American Petroleum Resin market, particularly in the United States, experienced a notable surge in prices marked by significant fluctuations. Several key factors influenced this upward trend, including heightened import costs and substantial material shortages.
In July 2024, the market saw a considerable increase in freight charges, which contributed to the overall rise in import expenses. Although freight rates began to decline in the latter half of August, ongoing port congestion in global trade continued to hinder supply timelines, exacerbating the existing material shortages. Throughout this period, demand for Petroleum Resin remained relatively muted, especially from the automotive sector, which is typically a primary consumer.
Despite these challenges, the quarter concluded with the price of C9 Petroleum Resin reaching USD 1265 per metric ton, CFR Savannah, in the United States. This price reflects the interplay of rising costs, supply chain disruptions, and the need for stabilization within the market, as stakeholders navigate the complexities of fluctuating supply and demand dynamics.
Asia
The Asian Petroleum Resin market exhibited a mixed trend throughout the third quarter of 2024. Prices experienced a significant increase during the first two months; however, they subsequently faced a notable decline in the final month. Despite these fluctuations, overall demand for Petroleum Resin remained relatively subdued. Conversely, persistent supply constraints continued to exert upward pressure on prices. Adverse weather conditions, including typhoons and heavy rainfall across the region, severely disrupted manufacturing activities, further tightening supply. This interplay of restricted supply and fluctuating prices underscores the complex dynamics influencing the market, with China emerging as the most affected region. Additionally, fluctuations in crude oil prices during this quarter, driven by ongoing geopolitical tensions worldwide, further contributed to the upward pressure on Petroleum Resin prices. As a result, the quarter concluded with a price of USD 1348 per metric ton for C5 Petroleum Resin, FOB Qingdao in China. This price reflects the culmination of the pricing fluctuations experienced throughout Q3 2024, highlighting the ongoing challenges and volatility within the Asian Petroleum Resin market.
Europe
In the third quarter of 2024, the European Petroleum Resin market experienced notable fluctuations, primarily trending downward due to a confluence of key factors. A significant contributor to this decline was the subdued demand from the automotive sector, a major consumer of Petroleum Resin. The automotive industry encountered substantial challenges, including sluggish sales figures and intensified competition from Chinese electric vehicles, which collectively diminished the need for Petroleum Resin in manufacturing processes. Moreover, the prices of essential feedstocks, particularly Crude Oil, failed to provide the necessary support to counteract the prevailing negative market trends. This lack of stability in feedstock prices further compounded the challenges faced by manufacturers in the region. Germany, in particular, witnessed the most pronounced price fluctuations, reflecting the difficult outlook for traditional automotive manufacturers amid ongoing industry transformations. The cumulative impact of reduced demand, competitive pressures, and stagnant feedstock prices created a challenging environment for Petroleum Resin pricing throughout the quarter. Consequently, the market remained on the lower end, highlighting the need for strategic adjustments within the industry to navigate these evolving dynamics effectively.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the North American petroleum resin market saw a significant rise in prices due to a confluence of factors. The quarter began with severe supply chain disruptions, including unplanned shutdowns by major manufacturers such as Henan Anglxxon Chemical Co., Ltd., Nanjing Yangzi Eastman Chemical Ltd. (JV), and Hangzhou Yangli Petrochemical Co., Ltd. These shutdowns intensified an already strained supply situation, driving prices up. Compounding the issue were rising import costs from key Asian markets and a surge in global container freight rates, which increased by over 30%, further exacerbating logistical challenges and cost pressures.
In the USA, where the most pronounced price changes occurred, the market trend remained consistently bullish. Strong demand from the construction sector, bolstered by substantial government funding for infrastructure projects and seasonal increases in construction activity, significantly contributed to higher resin prices.
Comparing the first and second halves of the quarter, prices rose by 3%, with a 5% increase from the previous quarter, reflecting ongoing upward momentum. By the end of the quarter, petroleum resin prices stood at USD 1575/MT CFR Savannah, marking a robust and positive pricing environment.
APAC
In Q2 2024, the Petroleum Resin market in the APAC region maintained stable pricing, influenced by a range of factors. The stability in crude oil prices provided a solid cost foundation for production, while strong demand from the construction and automotive sectors helped sustain market equilibrium. Despite occasional supply disruptions, the manufacturing sector's resilience supported this stability. China, as the region's focal point, saw notable price fluctuations, particularly due to a temporary plant shutdown at Anhui Tongxin New Material Technology Co., Ltd. caused by a heavy rainstorm from June 23 to June 28. This disruption tightened supplies briefly but did not lead to long-term instability. Prices for the quarter showed a modest 5% change from the previous quarter, reflecting overall market steadiness. Comparing the first and second halves of the quarter, prices remained consistent, highlighting a stable market sentiment. By the end of the quarter, the price of C5 Petroleum Resin FOB Qingdao was USD 1385/MT, underscoring the market's positive and resilient outlook.
Europe
In Q2 2024, the European petroleum resin market experienced a dynamic and upward pricing trend. This increase was primarily driven by higher feedstock costs and escalating freight rates and resulted a bullish trend in the European market. The cost of feedstock Crude Oil rose, directly impacting production expenses, while the global container freight index surged by over 30%, inflating logistical costs. Additionally, geopolitical tensions in the Middle East heightened concerns over potential crude oil supply disruptions, further boosting upstream costs. Strong demand for the product from the downstream construction and automobile sectors supported the market, despite concerns about gasoline demand and overall production expenses. In Germany, significant price changes were noted, largely influenced by rising feedstock costs and robust demand from key industries. Prices remained stable compared to the previous quarter but fell from the same period last year due to lower baseline figures. The price increase was observed between the first and second halves of the quarter, indicating a steady climb.
For the Quarter Ending March 2024
North America
In Q1 2024, the North American petroleum resin market experienced a complex interplay of factors influencing pricing trends. Initially, there was a notable increase in prices, driven primarily by costly imports from China, where domestic prices had surged.
The US, heavily reliant on these imports, felt the impact acutely. Supply constraints were exacerbated by geopolitical tensions, notably the Red Sea crises, which disrupted shipping routes and inflated freight costs. These challenges were compounded by Russia’s announcement of a six-month ban on gasoline exports starting in March, expected to have a long-term bullish effect on global crude oil prices, indirectly influencing petroleum resin costs. Despite these upward pressures, the market also saw periods of stability due to a robust performance in the manufacturing sector as indicated by a strong US Manufacturing PMI. This growth in manufacturing was supported by new export orders and higher production volumes, reflecting a positive economic outlook.
However, the construction industry, a significant consumer of petroleum resin, presented mixed signals. While there was growth in new construction projects, persistent labour shortages and other operational challenges dampened demand. Moreover, the easing of supply chain pressures allowed for some stabilization of resin prices later in the quarter. The market dynamics of petroleum resin in North America during this period highlight the sensitivity of regional prices to international market fluctuations and local economic indicators, portraying a scenario where global events and domestic economic health collectively shape the pricing landscape.
APAC
In Q1 2024, the Petroleum Resin market in the APAC region experienced a mix of stability and volatility. Overall, market prices remained relatively stable, with minor fluctuations influenced by various factors. In China, the largest market for Petroleum Resin, prices saw significant changes compared to the previous quarter. The market in China was primarily driven by reduced demand from the construction industry due to seasonal factors and adverse weather conditions. This resulted in a slowdown in construction activities and lower demand for Petroleum Resin. Furthermore, the global freight rate and the ongoing Red Sea crises played a role in influencing market prices. The disruptions in global trade routes, including the Suez Canal, impacted the timely arrival of imported Petroleum Resin, leading to constrained supply and potential port congestion. Additionally, the increase in the price of upstream Crude Oil added to the cost structure of Petroleum Resin production, further influencing market prices. Looking at the price trends within the quarter, there was a slight decline compared to the same quarter last year. However, there was a notable increase in prices from the previous quarter in 2024. In conclusion, the pricing environment for Petroleum Resin in the APAC region during Q1 2024 was characterized by stability with some fluctuations, particularly in China. Market prices were influenced by factors such as reduced demand from the construction industry, global freight disruptions, and changes in upstream Crude Oil prices. The quarter-ending price for C5 Petroleum Resin FOB Qingdao in China was USD 1360/MT.
Europe
During Q1 2024, the price of Petroleum Resin exhibited mixed trends, starting positively with increases in January and February. These price rises were primarily attributed to higher Crude Oil feedstock prices and supply concerns stemming from the Red Sea crisis. The ongoing crisis disrupted the supply chain, leading to delayed import arrivals and tightening raw material availability. This scarcity, combined with robust overseas demand from the USA and Asia, drove Petroleum Resin prices upward in the European market. In Germany, the largest market for Petroleum Resin in the region, prices followed a similar trajectory. The quarter began with an upward trend and saw a significant jump in February due to the same market factors, including supply disruptions caused by the Red Sea crisis. The scarcity of Petroleum Resin in Germany intensified price increases during this period. Overall, the pricing environment for Petroleum Resin in Q1 2024 was characterized as bullish, driven by supply challenges and heightened demand. Geopolitical tensions and supply chain disruptions contributed to market uncertainties. Despite this, domestic demand for Petroleum Resin remained stable, particularly within the downstream construction industry. The market dynamics reflected a complex interplay of global factors impacting pricing trends throughout the quarter.
