World Petroleum Resins Market on the Rise
A rather new type of polymer materials, petroleum resins have a bearing on many industries and sectors, such as repair and finishing activities, paint, papermaking, and tire and rubber. The chemistry of petroleum resins, combined with the range of commercially available variations, allows a broad range of properties. Due to excellent adhesion, heat and chemical resistance, as well as good-to-excellent mechanical properties, petroleum resins have been among the most preferred resin materials for coatings, printing inks, adhesives, and compounding agents.
Worldwide demand for petroleum resins has shrunk greatly, primarily due to downstream industries such as the coatings, rubber, and printing ink, all of which suffered from depression and weak market demand. The sharp decline in global economic activity, raw materials price volatility, liquidity concerns and widespread nationalizations exerted pressure on the petroleum resin industry. A decline in the business confidence index (triggered by falling profits, liquidity constraints, and shortages of credit availability to finance investments in new machinery/plants and upgrades) has represented a common woe that halved investment plans across all end-use sectors, thereby reducing the demand for petroleum resin. This year, inventories remain low and supplies tight. Unplanned outages have started to impact the downstream supply chain, resulting in price volatility.
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