Phenolic Resin Price Trend and Forecast

Phenolic Resin Regional Price Overview

Get the latest insights on price movement and trend analysis of Phenolic Resin in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Phenolic Resin Price Trend for the Q3 of 2024

Asia

In Asia, particularly in China and India, phenolic resin prices saw contrasting movements over the quarter. Early in the quarter, prices in the APAC region rose steadily due to increased raw material costs, especially phenol and formaldehyde. The upward price pressure was further exacerbated by declining inventory levels and limited import availability. China, a major player in the global phenolic resin market, managed its production efficiently to meet rising domestic demand, which had a significant impact on global pricing trends.
 

Phenolic Resin Price Chart

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The Chinese market was buoyed by robust demand from downstream sectors such as construction, automotive, and coatings, despite weather-related disruptions and manufacturing challenges. As China’s manufacturing sector expanded at its fastest pace in two years, driven by rising new orders, the country’s strong export activity also contributed to increased demand for phenolic resin, particularly in automotive coatings. However, later in the quarter, a slowdown in China’s construction sector, compounded by a property market crisis and reduced home sales, led to a decline in demand for construction materials, including phenolic resin.

Europe

In Europe, the phenolic resin market faced a different scenario, characterized by oversupply and weak demand. The European construction sector remained in contraction, with declining home sales reflecting the broader weakness in the real estate market. Manufacturing sector activity in the region was sluggish, with new orders continuing to decline, which slowed the growth trajectory for phenolic resin demand. Additionally, European manufacturers held ample stocks, which further limited purchasing activity. This cautious market sentiment, driven by economic uncertainties and falling phenol prices, led to a gradual decline in phenolic resin prices throughout Q3 2024.

North America

In North America, phenolic resin prices also followed a downward trend due to a combination of sluggish demand and oversupply. The U.S. construction sector faced challenges, with a slowdown in spending and weak new orders. Manufacturers maintained sufficient raw material inventories, reducing the urgency for new procurement and leading to fewer phenolic resin transactions.

The decline in phenol prices added to the downward price pressure, mirroring the trends seen in Europe. Economic uncertainties and oversupply further dampened the market, resulting in limited inquiries from downstream industries like construction, coatings, and wood adhesives. However, the market outlook began to shift toward the end of the quarter, with expectations of rising prices driven by potential supply disruptions due to Hurricane Francine, which was anticipated to impact production in the region.

Analyst Insight

According to Procurement Resource, the price trend of Phenolic Resin is expected to exhibit bearish momentum in the upcoming sessions. This anticipated price decrease is linked to excessive supply of the commodity and weak demand from downstream markets along with underperformance in economic parameters, further influencing the market's demand.
 

Phenolic Resin Price Trend for the Q2 of 2024

Asia

The market for phenolic resins in China showed an upward trend during the Q2 of 2024. The bullish market sentiments were driven by tight domestic supply conditions and a limited rise in inventories. Despite the adequate availability of upstream phenol, the supply of finished phenolic resins struggled to meet the demand from the construction and automotive industries. This imbalance was further pushed by weak post-holiday recovery of the manufacturing segment and high container shipping rates, contributing to the upward pressure on prices.

The traders, however, had a positive mindset as the forecasts indicate that the bullish trend will continue throughout the summer, with steady price increases expected in both July and August. Although, they are cautious about the market's sensitivity to upstream phenol prices and macroeconomic factors, including inflationary pressures and manufacturing activity.

Europe

In Germany, phenolic resin prices remained above the red zone throughout the first week of June. The market conditions were marked by a moderate supply and a low to moderate demand from the construction and automotive sectors. This stability persisted despite the declining prices of upstream phenol, as manufacturers were reluctant to adjust prices even amid the tepid demand. The construction industry in Europe faced significant challenges, such as labor shortages and reduced production, which contributed to the subdued demand for raw materials like phenolic resins.

Consequently, manufacturers adopted a cautious approach, maintaining prices to avoid potential market disruption. Price stability was further influenced by stagnancy in the costs of upstream materials like Benzene and LNG. The uncertainties in global shipping routes also posed potential volatility risks, which could affect future pricing dynamics. Overall, the pricing patterns of phenolic resins reflected the continued cautious market sentiment and adequate supply dynamics. However, the traders anticipate that the seasonal variations in demand, potential adjustments in upstream phenol prices, and evolving shipping costs are likely to influence these price movements.

North America

The North American phenolic resin market closely resonated with its feedstock phenol in the second quarter of 2024 and mirrored its market trend. The demand from the construction and automotive sectors was moderate, while the Chinese market's average demand was well met by sufficient stock and smooth supply chains. Although, the raw material costs provided significant support in maintaining market stability. Additionally, rising global crude oil prices, spurred by OPEC+'s production limits, increased production costs for phenol, contributing to bullish sentiment in the phenolic resin market. However, the skeptical economic growth forecast and gradual increase in inventories towards the end of the second quarter raised the concerns of the trading sector.

Analyst Insight

According to Procurement Resource, the price trend of Phenolic Resin is estimated to oscillate, in a narrow range although, under the influence of fluctuating prices of raw materials and tepid growth of global economy.
 

Phenolic Resin Price Trend for the Q1 of 2024

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Asia

The phenolic resin prices observed swift fluctuations in the Asian market during the first quarter of 2024. The early days were a little disappointing as the year had a muted start at the beginning of January’24. However, as days progressed the prices started to rebound in the market. Initially, it was the depreciation in downstream demands from the coating and adhesive industries that kept the prices dwindling. Soon, the demands made a comeback as the market activities started inclining. Both Indian and Chinese markets began supporting the positive market behavior.

Another major factor that forced the suppliers to push up the selling prices was the upsurge in crude oil prices. OPEC+ announced a reduction in output for the said span because of various geopolitical hindrances affecting the market fundamentals. This incline fundamentally steered the price trajectory upwards as the production and processing costs both got lifted. Overall, swift variations were observed in the phenolic resin price trend.

Europe

The market sentiments for phenolic resin in the European region were largely positive during the said period. European markets have been operating very carefully since the onset of the Russia-Ukraine war. Suppliers have been cautious with bulk purchases and kept a strict watch over consumer activities, so the inventory buffers were largely limited in the European markets.

With the incline in feedstock phenol and energy prices, the upstream costs were already rising. When Ukraine attacked major oil refineries deep inside Russia, this brought down the Russian oil output by approx.-7% immediately.  This immediately inflated the European markets and as a result the phenolic resin prices also inclined further.

North America

Influenced by the rise in global markets, phenolic resin prices maintained an upward trajectory in the American markets as well. The price curve grew even more steep with the passing of time. With regular market activities and steady demands in the first half of the quarter, the gap between supply and demand dynamics remained narrower. However, as time progressed the manufacturing costs increased even more, because of which the prices moved up, and the difficult offshore trade situations created even more upward pressure.

Analyst Insight

According to Procurement Resource, with the current situation of upstream and downstream driving factors, the Phenolic Resin price trends are likely to remain inclined in the coming months.
 

Phenolic Resin Price Trend for the October - December of 2023

Asia

Phenolic resin or Phenol Formaldehyde resin prices usually follow the market trend of its feedstock materials very closely. During the given period of the fourth quarter of the year 2023, the phenolic resin prices showed consistent fluctuations mimicking the variations in their raw materials, formaldehyde, and phenol markets.

Occasional spikes in demand from downstream industries like coating, adhesives, rubber, and automobiles pushed the market upwards, while the high inventory levels countered the ongoing trend. Relatively, the first half of the quarter performed better than the latter, as the second half of the quarter saw fewer industrial activities because of the holiday season.

Europe

The European Phenolic Resin market was witnessed to be fluctuating for the majority of the discussed period. Other than the slowdown in the feedstock phenol and formaldehyde markets, the decline in international trade also influenced the market here. The freight issues owing to the recent Israel-Hamas war caused the downstream demands to witness unprecedented lows. Overall, weak market trend were observed.

North America

The North American market performance for Phenolic Resin was comparatively better than its European counterparts. The prices started strong at the beginning of the quarter since the impending holiday season at the year's end fuelled up the industrial activities. However, the markets slowed down in the second half; the general market sentiments were largely mixed.

Analyst Insight

According to Procurement Resource, the market projections for Phenolic Resin are likely to remain oscillating in the coming months, given the current demands and pricing fundamentals.
 

Phenolic Resin Price Trend for the July - September of 2023

Asia

Throughout the third quarter, the phenolic resin prices bore a bearish trajectory as the support from the upstream products remained feeble throughout the third quarter. The phenolic resin price trend also struggled with the slowing down of economic recovery in China, which in turn proved fatal for the automotive and construction industries. In addition to this, the sliding cost of feedstock materials also had an adverse effect on the phenolic resin price graph.

Europe

The inflation in European countries played a major role in dictating the trajectory of the phenolic resin price graph. The phenolic resin market suffered from lowering demand from the end-user. Particularly paints and coatings sector performed poorly during the third quarter of 2023 and thus pushed the phenolic resin price trend in the negative zone. Further, consumer confidence in the phenolic resin market also slid on account of the depreciating value of the European economy. The traders also struggled with the lowering of the cost of production due to which the traders had to reduce their price quotations, hampering the phenolic resin prices.

North America

The adhesives and coatings sector was able to maintain a stable demand for phenolic resin, which somehow supported the market in the initial days of the third quarter. However, the cost of feedstock materials and rates of procurement from the downstream industries fell gradually during the quarter. The level of inventories was sufficient as compared to the muted demand for phenolic resins, forcing the manufacturers to slow down their production rates.

Analyst Insight

According to Procurement Resource, the price trend of Phenolic Resin are estimated to move southwards in the upcoming months due to the poor scenario of global demand for phenolic resin and the weak performance of the economy worldwide.
 

Phenolic Resin Price Trend for the First Half of 2023

Asia

The phenolic resin market in the first two quarters declined in the Asia Pacific region as the demand from the downstream sector moved southwards, with a notable decline in the number of new inquiries. In addition to this, the feedstock market, along with the upstream industries, provided weak support. The falling energy costs and the global slowing down of the economy also caused the price trend of phenolic resin to fall in H1’2023.

Europe

A gradually falling trajectory of the prices of phenolic resin was observed in the European region. The market in this region suffered from the consistently falling energy costs and reduction in support from the feedstock market. Additionally, the demand from the end-user industries and the drop in the market activities of the adhesives, coatings, and insulation sectors caused the trend of phenolic resin to move southwards.

North America

In North America, the price trend of phenolic resin fluctuated throughout the first and second quarters of 2023. The major influencing factors in determining the direction of the phenolic resin market were the cost of feedstock materials and demand from the downstream sectors. The rising cost of feedstocks supported the trend of phenolic resin, but the stable demand from the downstream industries was countered by the sufficient availability of the product in the region. In addition, the manufacturing sector reduced its activities, impacting the phenolic resin market negatively.

Analyst Insight

According to Procurement Resource, the price trend of phenolic resin is estimated to showcase a volatile trend as the feedstock prices and demand from the end-user industries are estimated to fluctuate.

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