Vinyl Ester price inflated owing to rising raw material prices
- 12-May-2022 11:44 AM
- Journalist: Patricia Jose Perez
Houston - In April, the market sentiments of Vinyl Ester Resins witnessed a hike in the global market due to burgeoning prices of raw materials. This swing in raw ingredients, epoxy resins, and ethylene prices occurred due to the escalation of crude oil prices worldwide amid the Russia-Ukraine war.
The energy crisis in major Vinyl Ester Resin producing countries such as the USA has led to the high production cost of Vinyl Ester Resin, proportionally affecting its market sentiments in the regional market. As per the resources, major producers of Vinyl Ester, Ashland Global, have raised the prices approximately by 15%, which impacted the prices of Vinyl Ester Resins in the global market. AOC LLC, situated in the USA, also followed the path, and has raised the prices of Vinyl Ester Resin by approximately €180/ton.
The factor responsible for the rise in the prices is the rising temperature in the region. Natural gas is the primary source of energy production and directly impacts the production rate of Vinyl Ester Resin in the regional market. The gas market is becoming involved with an erratic hit in the oil, fuel, and coal markets as nations scramble to ensure they have sufficient energy in order to continue the operational rate of Vinyl Ester Resin in the regional market.
Furthermore, another facet affecting the prices of Vinyl Ester Resin is the feedstock shortage with the manufacturers from primary supplying countries. China is a significant resource of Epoxy Resin in the international market. The imposition of lockdown in Shanghai, the central commercial hub of China, led to a halt in the production of Vinyl Ester Resin in the domestic market. This paucity stimulated the market sentiments of Vinyl Ester Resin. Port congestion and deliberate trade route resulted in frenzy feedstock availability with major producers correlatively affecting Vinyl Ester Resin's market dynamics in the global market.
As per ChemAnalyst, the prices of Vinyl Ester Resin will continue to rise in upcoming weeks due to increasing prices of feedstock and high production costs. Other factors such as labor shortage, shortage of vessels, and disruption in trade routes will proportionally affect the market of Vinyl Ester Resin.