C5 petroleum resin maintains steady essential demand, with prices trending upward while remaining stable.

【Lead-in】: Prices for feedstock C5 and isoprene have surged significantly. Downstream adhesive demand for C5 petroleum resin has risen due to rigid requirements. Although the hot-melt coating market has softened slightly, increased purchasing during price dips has kept transaction volumes decent, with prices still seeing sporadic upward adjustments.

1. Rise in Cracked C5 and Isoprene Prices

Cracked C5 quotes in North China are at 7,300 yuan/ton; East China is also at 7,300 yuan/ton; Northeast China ranges from 6,950–7,060 yuan/ton; South China ranges from 7,150–7,300 yuan/ton. Some private enterprises have raised prices to 7,300–7,600 yuan/ton. Domestic isoprene prices have remained stable, with ex-factory quotes holding steady in the range of 9,200–10,300 yuan/ton.

2. Weekly Supply of C5 Petroleum Resin Remains Low

Table 1: C5 Petroleum Resin Plant Updates

Data Source: Chempricehub Information

This week, industrial cracked C5 production decreased by 0.82% compared to last week. Current production stood at 72,700 tons, a drop of 600 tons from the previous week, with a capacity utilization rate of 71.45%. Meanwhile, weekly supply of C5 petroleum resin was 8,400 tons, with an operating rate of 65.20%, below the year-to-date average. The sharp rise in cracked C5 feedstock prices combined with weakening non-polymerized C5 prices has made it difficult for resin producers to maintain profitability. Consequently, downstream buyers have been active in purchasing during price dips. Some manufacturers have virtually no spot inventory available, leading to firmer bottom-tier prices. Regarding adhesives-grade resin, downstream rigid demand remains concentrated, and stockpiling sentiment driven by low prices has increased. Spot sales availability for November continues to decline, prompting some manufacturers to push prices up slightly.

From an inventory perspective, two main factors are at play: first, frequent plant maintenance keeps C5 petroleum resin production at low levels; second, downstream demand shows divergence. Although demand for hot-melt coatings has declined, scarce supply is being chased, resulting in slight price increases. For label adhesives, rigid demand remains steady, with manufacturers holding significant order backlogs. Inventory levels are mostly below safe storage thresholds. Overall market inventories have seen a marginal increase but remain near their lowest levels in the past two years.

Table 2: C5 Petroleum Resin Production and Sales Balance Sheet

Data Source: Chempricehub Information

In terms of consumption, both hot-melt coatings and label adhesives saw slight declines. However, production volumes were also low, rigid demand remained robust, and previous inventory levels were low, creating a need for restocking among manufacturers. This dynamic led to a slight increase in inventory levels while maintaining substantial core consumption volume. Looking ahead to November, hot-melt coating demand is expected to continue contracting. In contrast, label adhesive demand may fluctuate periodically as shopping festivals and the winter consumption peak arrive, though overall levels are expected to remain high.

Overall, domestic supplies of cracked C5 and isoprene are expected to remain tight in November, keeping prices at elevated levels. C5 petroleum resin producers face significant cost pressure, with some by-products continuing to trade at negative margins. While supply volumes have increased slightly, rising demand for label adhesives provides clear support. With strong backing from both costs and demand, prices are expected to remain firm, with potential for stable gradual increases in certain segments.