Resorcinol Prices Increase in the US on the Back of Rising Feedstock Costs

USA: Resorcinol's price in the US has been impacted by various economic data, political and geopolitical changes, epidemic control efforts, and social initiatives. Although the situation with inflation and the commodities supply chain, including Resorcinol, is somewhat better, it is still unknown how the economy will suffer. Market participants and business leaders are hoping for a favorable result.

Resorcinol has experienced higher-than-average demand in the US since the first quarter of 2023 due to its widespread use in various end-user sectors, including Chemicals, Rubber, Pharmaceuticals, and Automotive. Resorcinol prices have been rising due to an incline in feedstock Benzene costs and are supported by high demand from the domestic market. As the energy industry changed in the US, Benzene became more expensive.

Supply chain disruption decreased significantly over the previous six months till March 2023, but numerous indicators, like shipping prices, indicate that it has since normalized. This development in the supply chain has further aided in the flow of goods, including Resorcinol, in the US. US interest rates of several commodities, including Resorcinol, are expected to drop due to declining inflation. Nonetheless, inflation remains strong in many emerging nations despite the possibility of a global recession.

As China's new covid dampens market optimism, a large-scale relaxation of the Chinese government's rigorous zero covid policy abroad was announced. The adjustment does not imply a change in strategy; rather, it refers to the relaxation of restrictions that have impeded the export of goods, most notably Resorcinol from the second-largest economy in the world.

ChemAnalyst predicts that Resorcinol price will remain on the higher end in the US market, along with growing demand from end-user industries due to the easing of covid restrictions and advancements in the US supply chain. Moreover, the prices for Resorcinol in the US market are likely to change anytime as the market dynamics of feedstock, particularly Benzene, are dynamic.