For the Quarter Ending December 2024
North America
In Q4 2024, the U.S. Resorcinol market saw a steady rise in prices, fueled by high demand and severe supply chain challenges. In October, strong demand from the food and beverage sector, along with rising import costs from Asia, pushed prices higher. Supply constraints worsened due to increased fuel prices, port congestion, labor strikes, and limited domestic production. Traders' stockpiling in anticipation of winter demand further tightened supply, while higher Sulfuric acid costs raised production expenses.
November continued the upward trend, as skyrocketing Chinese export prices, fluctuating currency rates, and ongoing shipping disruptions added pressure. With limited shipping capacity and rising freight costs, importers faced mounting procurement expenses. Despite strong export demand for U.S.-made Resorcinol, domestic supply shortages left traders with little bargaining power.
These combined factors point to a structural shift in the market, with prices likely to remain elevated unless domestic production ramps up or import sources diversify. Overall, Q4 2024 was characterized by a consistent upward price trend, driven by supply chain disruptions and strong demand.
Asia
The overall trend in Q4 2024 for Resorcinol prices in Japan was a significant upward trajectory, marked by a strong seller's market and supply chain disruptions. In October, limited availability, high demand from the pharmaceutical sector, and rising costs of key raw materials like Sulfuric Acid caused Resorcinol prices to surge.
By November, the market remained bullish, driven by strong demand from Western markets and tight supply, exacerbated by logistical challenges. December saw a critical market shift, with manufacturers leveraging low inventories and post-holiday demand to reset pricing mechanisms, positioning the market for sustained volatility.
Sulfuric Acid prices also rose, supported by increased demand from the agrochemical sector during the plantation season and higher feedstock costs. Despite stable Benzene prices, the overall market sentiment was bullish, reflecting tightening supply conditions. As Japan navigates transportation bottlenecks and strategic production throttling, the Q4 market dynamics signal a broader transformation, with long-term implications for global trade and pricing structures. Market participants must brace for ongoing price volatility in the months ahead.
Europe
In Q4 2024, the European Resorcinol market was marked by significant volatility, driven by rising prices and a series of challenges. The growing reliance on Chinese imports, escalating freight costs, and shifting energy prices created a turbulent market environment. These conditions required traders to adopt more sophisticated inventory and procurement strategies.
Despite these pressures, the food additives and pharmaceuticals sectors showed steady growth, managing increasing operational costs amid uncertain demand. Mid-quarter, opportunities arose as Chinese suppliers cleared their inventories with competitive pricing, which traders were quick to leverage. However, tight regulatory standards and quality control demands added further complexity, making it essential for businesses to stay proactive and adaptable.
The quarter emphasized the need for strategic planning, as European traders balanced cost management with fluctuating demand. It also showcased the market's ability to adapt, utilizing both resilience and forward-thinking strategies to navigate volatility while capitalizing on short-term pricing opportunities.
For the Quarter Ending September 2024
North America
The US Resorcinol market in Q3 2024 showed similar patterns to Europe but with distinct regional dynamics. July started with favorable import conditions as US buyers capitalized on lower Japanese export prices. The strong US dollar against the yen partially offset increased freight rates, helping maintain competitive import costs despite global shipping challenges.
August brought a shift in market dynamics as US importers faced stiffer competition for Japanese material. Domestic demand strengthened, particularly from rubber products manufacturers and wood adhesives producers. US buyers increased their purchasing activities in response to rising benzene prices and growing concerns about supply chain reliability. The market also saw increased stockpiling ahead of the hurricane season, which traditionally affects logistics operations.
September continued the upward price trajectory in the US market. American importers faced additional pressure from strong competition with European buyers for Japanese material. The pharmaceutical and personal care sectors increased their procurement activities, anticipating higher demand in the coming winter months. Logistics bottlenecks at major US ports, particularly on the West Coast, contributed to longer lead times and higher handling costs, further supporting the price increase trend in the domestic market.
Asia
In the third quarter of 2024, Japan’s Resorcinol market experienced a fluctuating trend, with prices ultimately rising due to a mix of economic, seasonal, and geopolitical influences. In July, prices, largely due to an oversupply situation in the domestic market, reduced global competitiveness from a stronger yen, and increased freight costs from ongoing geopolitical tensions. Seasonal plant shutdowns also contributed to inventory liquidation, keeping prices under pressure.
However, in August, prices rebounded as demand surged both domestically and in export markets, bolstered by Japan’s stable production and cost advantages. The Japanese yen's appreciation, along with limited shipping capacity, allowed exporters to secure higher rates. The market also saw intensified procurement ahead of the Zhongyen Festival and anticipated October market closures, alongside price increases for benzene, a key feedstock, and higher crude oil prices tied to Middle Eastern tensions.
In September, prices continued to rise stably, as supply constraints and strong demand sustained market pressure. Anticipatory buying before production restarts heightened competition, with companies strategically building inventories to mitigate potential supply risks in the holiday and winter months, particularly for food and pharmaceutical sectors. Meanwhile, logistical challenges and a stronger yen added upward momentum, benefiting Japanese exporters. A bullish trend in the sulfuric acid market due to rising sulfur feedstock costs also impacted Resorcinol pricing. Overall, Q3 2024 saw Resorcinol prices in Japan decrease steadily.
Europe
In the third quarter of 2024, Europe's Resorcinol market showed an upward trend, primarily influenced by its dependency on Japanese imports and regional market dynamics. In July, prices remained relatively stable despite Japan's oversupply situation, as European importers faced higher freight costs and currency exchange challenges with the stronger yen. Local inventory levels were maintained through consistent import volumes, though logistics constraints from major shipping routes created some supply chain pressure.
In August, European prices saw a sharp increase as import costs rose due to Japan's strengthening market position and the yen's appreciation. European buyers faced intensified competition for available Japanese material, particularly as regional demand increased from pharmaceutical and industrial sectors. Pre-winter stockpiling activities and limited regional storage capacity contributed to price pressures, while higher benzene prices in the European market added to the cost structure.
In September, the market continued its bullish trend with prices climbing further. European importers accelerated their procurement activities to secure supplies before Japanese plant maintenance periods. The pharmaceutical sector's growing demand and strategic inventory building for winter months created additional market pressure. The stronger yen and persistent logistical challenges further elevated import costs, while rising sulfuric acid prices in Europe's domestic market contributed to overall cost increases.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Resorcinol market experienced significant price fluctuations driven by complex supply and demand dynamics. Initially, the United States saw a substantial drop in Resorcinol prices in April, paralleling trends in Chinese provinces. This decrease was largely due to the U.S.'s position as a major importer, with easing geopolitical tensions leading to reduced freight charges and lower shipment costs. Additionally, large inventories from earlier bulk purchases, made in anticipation of higher demand, further softened the market as decreased purchasing activity and weakened consumer confidence due to inflation dampened demand.
Supply-side factors also played a crucial role in the market dynamics. The appreciation of the U.S. dollar contributed to the downward pressure on prices, creating challenges for producers and suppliers. Global supply chain disruptions, ongoing geopolitical tensions, and logistical issues such as drought-induced bottlenecks and prolonged vessel delays further impacted the market. The General Rate Increase (GRI) imposed by shipping carriers raised costs, prompting industry participants to adopt bulk buying strategies to mitigate future supply uncertainties and take advantage of existing arbitrage opportunities.
Despite these challenges, the U.S. market witnessed significant price changes influenced by the early onset of the peak shipping season, strong local purchasing, and robust downstream demand. Seasonal factors, particularly the anticipated higher demand during the summer months, amplified the price increases. The combination of these elements created a dynamic and volatile market environment for Resorcinol in North America during Q2 2024.
Asia
In the second quarter of 2024, Resorcinol prices in the APAC region exhibited significant fluctuations driven by several key factors. April marked a notable downturn in the Japanese market, primarily due to an oversupply from domestic suppliers. This surplus led market participants to strategically lower prices to manage inventory levels. The pessimistic demand outlook, coupled with a stable purchasing pattern, further pressured prices. Additionally, the appreciation of the US dollar and the bearish trend in raw material costs, such as Sulphuric Acid, contributed to the price decline. The economic downturn in Japan, reflected by the depreciation of the Yen and reduced consumption rates, exacerbated these trends.
However, may witness a rebound in Resorcinol prices driven by robust demand that outpaced the constrained supply. The limited availability of Resorcinol, coupled with rising energy and raw material costs, including benzene and sulfuric acid, significantly increased production expenses. Logistical challenges and elevated freight costs, fueled by higher crude oil prices, further intensified the cost pressures. The depreciation of regional currencies against the USD also heightened import expenses, adding to the overall financial burden on suppliers and manufacturers. These factors collectively pushed prices upward.
Japan experienced the most significant price changes in the APAC region, with a consistent rise in Resorcinol prices due to substantial seasonal fluctuations and strategic inventory management. The second quarter showcased a 0.24% average quarterly price increase, with the latest quarter-ending price for Resorcinol (≥ 99.5%) FOB Tokyo at USD 4540/MT. Despite the absence of major disruptions or plant shutdowns, the market dynamics were largely influenced by demand-supply imbalances and economic conditions. Overall, the pricing environment in Q2 2024 was favorable, characterized by heightened demand and constrained supply, fostering an upward price trend across the APAC region.
Europe
In Q2 2024, the European Resorcinol market saw a substantial price increase due to rising production costs, geopolitical disruptions, and supply chain constraints. Germany, a key importer, experienced a notable price decline in April, mirroring a broader downturn in exporting regions. This decrease was attributed to substantial inventories from prior bulk purchases, resulting in oversupply and dampening market sentiment. Reduced purchasing activities and weakened consumer confidence, compounded by inflation, further suppressed demand.
The easing of geopolitical tensions contributed to a reduction in freight charges, impacting transportation costs and overall pricing in the German market. Supply dynamics played a crucial role, with the US Dollar's appreciation against the Euro adding challenges for producers and suppliers. Escalating feedstock prices, particularly for Sulphuric acid, significantly increased production costs. Logistical disruptions from the Panama Canal drought and reduced vessel traffic exacerbated supply issues, creating bottlenecks and market strain. Additionally, the ongoing conflict in Israel and Gaza caused sporadic shipping delays, particularly affecting routes through the Red Sea and Cape of Good Hope, intensifying market volatility.
Germany faced a confluence of factors, including a weakened Euro and heightened inflationary pressures, driving prices upward. Seasonal demand fluctuations led to increased procurement activities early in the quarter. However, as inventories built up, the market experienced a slowdown. Overall, the European Resorcinol market in Q2 2024 was characterized by significant price volatility driven by complex interplays of supply chain challenges, geopolitical events, and macroeconomic factors.
For the Quarter Ending March 2024
North America
In the first part of 2024, the North American Resorcinol market experienced a period of change with notable price swings. Initially, prices climbed steadily due to robust demand from both exporting and importing regions, which drove up production costs. This heightened demand was driven by substantial orders from market players aiming to meet the increasing market requirements. However, by February, prices took a sharp downturn. This decline was attributed to excessive stockpiling by domestic manufacturers and local suppliers, along with weakened demand from downstream industries and reduced import opportunities.
The downward price trend was also influenced by concerns of oversupply, as decreased demand both domestically and internationally resulted in higher inventories in exporting countries. US market participants adjusted their prices to stay competitive. Reduced freight charges also played a role in creating a weaker and more consolidated market environment. Furthermore, the decrease in raw material prices, notably benzene and sulfuric acid, impacted Resorcinol manufacturing costs, adding a layer of complexity to pricing dynamics.
Asia
The APAC region's Resorcinol market in Q1 2024 has experienced a mix of price changes influenced by various factors. The overall trend for Resorcinol pricing in the region has been a steady depreciation, with some fluctuations observed in specific countries.
In China, the market has seen price changes, with quarterly prices depreciating by 1.72% in March 2024, recorded at USD 4250/metric ton FOB Shanghai. In Q1, the Chinese Resorcinol market experienced a decline in prices after initially showing a slight upward trend. This drop was influenced by various factors, including the Spring Festival and Lunar New Year closures, labor shortages in Resorcinol-producing factories, and surplus Resorcinol supply. To clear inventories before the holidays, suppliers adopted aggressive pricing strategies with significant discounts. Additionally, logistical disruptions and upstream dynamics like sulfuric acid supply also impacted Resorcinol prices. As the market reopened in March, there was an excess of Resorcinol supply, leading suppliers to further lower prices to meet destocking goals. Normalization of freight charges and increased trade activities in March due to reduced charges heightened market competition, contributing to the continued pricing decline.
In Japan, prices initially decreased due to the devaluation of the Japanese yen against the USD. There was an excess supply of Resorcinol, leading suppliers to lower prices to clear surplus inventory by offering discounts for bulk purchases. Freight charges normalized, reducing costs. However, prices increased in February due to increased demand and limited inventories, prompting price hikes. Production slowed during the Japanese New Year celebrations in January, causing supply constraints. After the holiday season, production increased, leading to higher costs and supporting prices. In Japan, the market has seen quarterly price depreciation of 0.22%, with prices recorded at USD 4575/metric ton FOB Tokyo.
Europe
In the first quarter of 2024, the European Resorcinol market went through a dynamic period marked by significant price fluctuations. Initially, prices rose steadily due to strong demand from both exporting and importing regions, leading to higher production costs. This increased demand was fueled by large orders from market players aiming to meet the rising market needs. Also, replenishment activities in the domestic market was the another reason that supported the upward trend. However, by February, prices sharply declined. This drop was attributed to excessive stockpiling by domestic manufacturers and local suppliers, along with weakened demand from downstream industries and reduced import prospects.
The downward price trend was also influenced by concerns of oversupply, as decreased demand both domestically and internationally led to higher inventories in exporting countries. European market players adjusted their prices to stay competitive. Lower freight charges also contributed to a weaker and more consolidated market landscape. Additionally, the depreciation in raw material prices, particularly benzene and sulfuric acid, impacted Resorcinol manufacturing costs, adding complexity to pricing dynamics.
