For the Quarter Ending June 2023

North America:

In the second quarter of 2023, Resorcinol (m-dihydroxybenzene) prices in the US market experienced a significant decline, primarily attributed to erratic fluctuations in supply and demand dynamics. Retail sales saw a decline due to high inflation, with retailers grappling with bloated inventory levels ordered to meet demand surges during the pandemic, despite stagnant consumer demand. Additionally, reduced travel fares added to the deceleration in economic growth. Weak demand and high inventory levels adversely affected market trading fundamentals. Furthermore, the global drop in phenol raw material prices exerted additional downward pressure on Resorcinol prices. Import figures dwindled as US companies grappled with the challenge of reducing their sizable inventories. The country's largest container port also witnessed a decrease in import volumes. Despite demand plateauing, retailers faced inflation-related concerns as they maintained their inventory levels to address heightened pandemic-related demand and potential future shortages.

Asia:

The market price of Resorcinol witnessed a significant downturn in the second quarter of 2023, primarily driven by weak domestic and international demand. During the quarter, the Purchasing Managers' Index (PMI) fell below the 50-point threshold, indicating a contraction in the manufacturing sector. In response to substantial Resorcinol inventories, suppliers were compelled to reduce prices in an effort to deplete existing stockpiles. This price trend was further exacerbated by declining sales in final consumption areas and a lack of new inquiries from domestic and overseas suppliers. China's import and export activities displayed mixed results, with exports decreasing by 3.9% year-on-year and imports increasing by 1.9%. In the Chinese CFR Shanghai Resorcinol market, prices followed a downward trajectory during negotiations. Meanwhile, the Chinese government implemented measures to cool the economy, including raising interest rates and tightening the money supply. Market sentiment remained subdued due to diminishing buyer demand, reduced sales from downstream industries, and a dearth of new inquiries from domestic and foreign suppliers. Some market participants opted to reduce their inventories to improve cash flow.

Get Real Time Prices of Resorcinol: https://www.chemanalyst.com/Pricing-data/resorcinol-1191

Europe:

In the second quarter of 2023, declining demand for Resorcinol resulted in a price drop in the European market. German Resorcinol prices exhibited a downward trend as demand from downstream sectors and imports from exporting countries like China and India slowed down. The global supply of Resorcinol expanded due to increased production capacity in India, the world's leading Resorcinol producer, leading to an influx of Resorcinol into the global market. However, the deceleration of the global economy led to reduced demand for Resorcinol. Additionally, speculators engaged in selling Resorcinol futures in anticipation of future price declines, applying further downward pressure on prices. Tariffs between China and the US West Coast returned to pre-pandemic levels, significantly alleviating congestion and subsequently lowering ocean freight prices, impacting overall market conditions. The government also eased certain restrictions on the importation of generic drugs, increasing the availability of generic versions of Resorcinol. Weak buying momentum and excess inventory levels continued to heavily influence Resorcinol price performance.





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