The sales of petroleum resin increases to 2276.9 K MT in 2016 from 1864.2 K MT in 2011

Petroleum resin refers to oligomer with molecular weight between 300-3000. It is produced from petroleum based feedstock aliphatic (C5), aromatic (C9), DCPD (dicyclopentadiene) or mixtures of these. It contains C5 petroleum resin, C9 petroleum resin, C5/C9 petroleum resin, modified petroleum resin, and others. The petroleum resin industry is a fragmented group of relatively small companies. As raw materials are easily available and downstream market is wide, so manufacturers of petroleum resin are distributed around the world.
 
 
The sales of petroleum resin increases to 2276.9 K MT in 2016 from 1864.2 K MT in 2011 with an average growth rate of 4.08%. The global sales value increased with the 0.70% average increasing rate. China is the mainly consumption region due to the bigger demand of downstream applications. This region occupied 50.38% of the global consumption of petroleum resin in 2016.
 
Petroleum resin has several types, which include C5 petroleum resin, C9 petroleum resin, C5/C9 petroleum resin, hydrogenated petroleum resin and others. And hydrogenated petroleum resin is the mainstream product. With the development of economy, the downstream application industries will need more petroleum resin. So, petroleum resin has a huge market potential in the future. Manufacturers engaged in the industry are trying to produce high quality petroleum resin through improving manufacturing process.
 
The major raw materials for petroleum resin are C5 fraction and C9 fraction, etc. Fluctuations in the price of the upstream product will impact on the production cost of petroleum resin, and then impact the price of petroleum resin.
 
We tend to believe this industry is a rising industry, and the consumption increasing degree will show a smooth growth curve. According to the economy development status, the price presents decreasing trend from 2011 to 2015, and that showed increasing trend in 2016. And, there is decreasing trend in gross margin.