VER Market Shows Fluctuations as European Prices Edge Up, while China Remains Stable
VER Market Shows Fluctuations as European Prices Edge Up, while China Remains Stable

VER Market Shows Fluctuations as European Prices Edge Up, while China Remains Stable

  • 28-May-2024 3:43 PM
  • Journalist: Jacob Kutchner

During the past week of May 2024, the Vinyl Ester Resin (VER) market saw fluctuations in prices across Europe and Asia. Despite this, the overall market sentiment remained steady, with a slight increase observed in European VER prices. Conversely, the Chinese market maintained price stability, thanks to sufficient supplies, which can be attributed to the consistent pricing of feedstock Epoxy resin in the region. However, the demand from downstream sectors utilizing VER, notably in the production of Fiberglass Reinforced Plastics (FRP) composites for automotive and construction purposes, was relatively subdued, impacting the pricing trend. As a result, the price of VER Novalac-based FOB Barcelona (Spain) experienced a 0.5% upsurge, while Chinese VER Novalac-based CFR Qingdao remained unchanged throughout the week ending on May 24, 2024.

In the European VER market, particularly in Spain, there was a slight increase, primarily due to rising freight rates and insufficient inventory levels in the regional market. The surge in demand for ocean freight from Asia, possibly indicating the beginning of a restocking cycle in Europe, combined with North American importers hastening their peak season demand due to apprehensions regarding labor issues or disruptions in the Red Sea later in the year, has further strained the container market. This strain has been exacerbated by the redirection of shipments from the Red Sea, consequently increasing the import costs of raw materials in Europe.  Furthermore, feedstock Epoxy Resin maintained a stable trend amidst consistent supply-demand dynamics. However, VER demand remained sluggish, especially in downstream composite manufacturing sectors like construction and automotive.

Similarly, throughout this period, the Asian market generally exhibited price stability in the fourth week of the month. This consistent pricing can be attributed to a balanced equilibrium between supply and demand. Furthermore, the prices of feedstock Epoxy resin followed a steady trajectory in the region, which has bolstered the pricing trend for VER. The strong demand for VER, propelled by its corrosion resistance and mechanical properties, has notably increased its utilization in the automotive sector. In the primary downstream composites inventory stage, there were small orders placed at low prices in response to demand, while enterprise shipments were sluggish. This led to heightened competition at lower price points and prompted traders to maintain VER prices at their current levels for the week.

According to ChemAnalyst, the price of VER is anticipated to continue its upward trajectory in the second quarter in Europe. This projection is attributed to the potential rise in the cost of imported raw materials, driven by increasing freight rates stemming from disruptions in major trade routes. Additionally, Chinese VER prices are expected to increase in May, but this upward trend may ease in June. This easing is anticipated due to the onset of the monsoon season, which could impact downstream demand from the construction sector in the region.

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