During the quarter, the US market saw a rise in the Petroleum Resin Prices due to heightened demand from downstream industries such as packaging and rubber. Despite this, the domestic supply of the product remained stable. Additionally, overseas demand increased during this period, driven by the seasonal demand for the product in the summer months, when consumption from the packaging and paint industries typically rises both domestically and globally. The price trend of the product was also influenced by global price trends, as prices increased in overseas markets. Fluctuations in the price of feedstock Crude Oil further supported the price trend for the product.
In the first quarter of 2023, fluctuations in Crude Oil Prices impacted the price of Petroleum Resin in the Asian market, resulting in a price increase trend. Additionally, during the Chinese New Year festivities, the demand for the product surged in Asia, particularly in the downstream packaging sector, which experienced an uptick in demand for gift packagings such as boxes, bags, and wrapping paper. Consequently, in the Chinese market, the product's price increased by 9.7% in January, followed by 1.1% and 1.0% increments in February and March, respectively. The primary cause for this price trajectory was the heightened demand from downstream industries during the festival season, leading to increased uncertainty.
Due to increased demand in the European market, the price of Petroleum Resin rose in Q1 2023. A labor strike in Germany further supported this trend, as workers at a major port in Hamburg disrupted the flow of goods and commodities, potentially leading to supply chain disruptions and price increases for Petroleum Resin. The strike prevented the loading and unloading of container ships carrying commodities such as oil or Petroleum Resin, resulting in a temporary shortage of the product and driving up its price in the European market. Additionally, the seasonal demand from the paint and coating industry, as well as the packaging industry, contributed to the high demand for the product. However, the supply of the product was only moderate, leading to a shortfall in availability.
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