Resorcinol Price Trend and Forecast

Regional Price Overview

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

Resorcinol Price Trend for the Q1 of 2024

Asia

Resorcinol prices were mostly observed to be tumbling throughout the given span of Q1’24. The global demand decline of resorcinol had been pressurizing the price trend since the beginning of the said quarter in January’24. In India, domestic consumption was still able to counter the supplies a little bit since production was also limited. However, the Chinese market, being the major exporting hub, had the inventories bulked up with excess products.

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Along with that, both the domestic and international demands crashed during the said period. The rising inflation and the trade uncertainties caused the prices to falter consistently during the first quarter of 2024. Conclusively, a weak market performance was experienced.

Europe

Just like the Chinese market, the European resorcinol market was majorly driven by the demand depreciation in the region for most of Q1’24. In Europe, since the onset of the Russia and Ukraine conflict the industries have not been able to fully revive as the supply chains were still congested. Even though the traders set up alternative routes, the results were not the same.

Amidst all this, another major armed conflict broke out in the Middle East between Israel and Hamas. This further trampled the global trade dynamics and complicated the effects caused by the Russian war. The downstream consumption was highly unsettling. Even the steep incline in energy and oil prices could not balance the effects of such rampant demand depreciation in the European markets.

North America

The market behavior of resorcinol in the American market was not much different from its Asian and European counterparts. During the early phase of the first quarter of 2024, the prices observed a tepid, falling pattern in the US market. Resorcinol is commonly consumed in the pharma, furnishing, and coating industries. All these sectors majorly work with advance procurements, and with a lesser number of working days this quarter because of the holiday season, the inventories were already overflowing with excess supplies.

Thus, the price trend remained southward, tilted primarily in the first half of the quarter. However, some rebound was seen in the latter phase of the quarter as the existing stocks started to reduce. Overall, a largely mixed and wavering price pattern was witnessed.

Analyst Insight

According to Procurement Resource, the Resorcinol price trends will continue to oscillate in the coming months; the current supply situation will keep the prices riddled going forward.

Resorcinol Price Trend for the October - December of 2023

Asia

Resorcinol is a versatile chemical extensively used for its excellent adhesive properties. However, during the last three months of the year 2023, the resorcinol markets in the Asian region were observed to be struggling for the entire span. The market dynamics were being pushed by both the upstream and downstream ends.

The downfall in feedstock benzene and propylene prices substantially reduced the upstream production costs for resorcinol, depleting the cost support. Secondly, the dull consumer interest was also very evident in the lackluster demand patterns of the major Asian markets like India and China. The Chinese market was still occasionally rising, but the general market trend were largely seen to be dwindling during the said period. Overall, marginally varying numbers were witnessed at the Resorcinol price index.

Europe

The European market prices for resorcinol were observed to be struggling during the final quarter of the year 2023. The economic uncertainties affected the resorcinol orders from wood, furniture, and tire markets, leading to the piling of unused stocks in the inventories. This accumulation of excess products forced suppliers to cut down the prices in order to maintain the stock movement. Conclusively, downward wavering price patterns were registered in Q4’23.

North America

The North American resorcinol market was not any different from the Asian and European markets, as the prices here were witnessed to be oscillating at the lower side of the curve. Poor market fundamentals resulted in the short-ranged variations in the resorcinol price patterns.

Analyst Insight

According to Procurement Resource, the Resorcinol price trend are expected to continue along a similar trajectory in the coming months given the current volatilities in the market dynamics.

Resorcinol Price Trend for the July-September of 2023

Asia

Resorcinol price analysis during the third quarter of the year 2023 reported the price trend to be wavering at the lower end of the price curve. Even though some market drivers suggested otherwise, the price trend performed underwhelmingly.

The price graph remained downward facing for the entire period of Q3’23. The inventory stocks were already high and well capable of catering to the existing demands. Further depletion in the crude oil prices amidst all these situations promoted the price de-escalation even more.

The Chinese consumers were struggling with declining purchasing power, and further, the private construction sector was also facing downward tribulations. This led to a decline in resorcinol consumption from the resin and adhesive sectors. Furniture purchases have also been low tottering since the onset of the COVID-19 pandemic. Overall, a poor market performance was observed for resorcinol during the said period.

Europe

The import dependence of the resorcinol market was the primary reason the price graph for the European region almost replicated the price curve from Asia. Even though the feedstock benzene and methanol were providing some cost support, the recent ease in inflation depleted the resorcinol prices in the European region. The general market outlook was depressing.

North America

The North American resorcinol prices did not behave any differently than the global southward trend. Since the high-interest rates were keeping the industrial operations on the lower side, the market queries for resorcinol remained bearish, and the price graph remained facing downward.

Analyst Insight

According to Procurement Resource, not much improvement is anticipated in the Resorcinol market trend going forward as the downstream demands are not likely to rebound anytime soon.

Resorcinol Price Trend for First Half of 2023

Asia

The first and second quarters faced several challenges, and due to this, the price trend of Resorcinol declined significantly. The existing large number of inventories, contraction in the manufacturing activities, and fall in the export rates also contributed to the downward journey of Resorcinol prices.

In addition to this, the Chinese government took strict measures to curb the falling economic activities that led to the rise in the interest rates charged by banks and the restricted supply of money in the region. This resulted in the lowering of the purchasing potential of consumers and thus caused the price trend of Resorcinol to move southwards.

Europe

During the major phase of the first quarter, the prices of Resorcinol surged. The significant cause of this incline in the price trend was the stable, stagnant movement of downstream industries, their persistent demand, and the shortage of supplies. But in the end period of the first quarter and during the second quarter, the prices of Resorcinol fell consistently.

The demand and interest of end-user industries slid in the red zone while the imports from China and other Asia-Pacific countries increased. This caused a disbalance in the supply-demand equilibrium. Further, the weak financial conditions, drop in ocean freight charges, and restrictions on imports also led to the fall in the price trend of Resorcinol.

North America

In the initial phase of the first quarter, the incline in the number of sales of pharmaceutical and disinfection industries helped the price trend of Resorcinol to grow. The supply, on the other hand, fluctuated consistently, which further supported the Resorcinol market sentiments.

The second quarter, however, did not follow the same trajectory. During this time, the inventories swelled up in view of weak demand from the downstream industries and a drop in the cost of raw materials.

Analyst Insight

According to Procurement Resource, the price trend of Resorcinol is estimated to fall in the upcoming quarters as the rates of procurements from the end-user industries seem poor in view of stumbling economic conditions.

Procurement Resource provides latest prices of Resorcinol. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.