How does the resorcinol supply-demand balance look in China, and what drives price movements?

How does the resorcinol supply-demand balance look in China, and what drives price movements?
China's resorcinol market has shifted from tight supply to potential oversupply. Domestic output grew from 27,500 tonnes in 2017 to 46,300 tonnes in 2022, while demand rose from 24,000 to 39,900 tonnes. Zhejiang Longsheng dominates with 36,700-50,000 tonnes capacity, followed by smaller players like Shandong Kesheng and Wuhai Shilian. The 2019 Tianjiayi explosion removed about 20% of meta-phenylenediamine capacity, tightening upstream feedstock and supporting resorcinol prices. However, new capacity additions, including Wuhai Shilian's 10,000-tonne plant, pushed global capacity toward 90,000 tonnes against demand of roughly 55,000-65,000 tonnes, raising oversupply concerns. Average domestic prices rose from 32,200 yuan/tonne in 2017 to about 48,800 yuan/tonne in 2023, supported by antidumping duties on Japanese and US imports.