Vinyl Ester Resin Prices Dip Amid Weak Demand and Sufficient in Asia and Europe
Vinyl Ester Resin Prices Dip Amid Weak Demand and Sufficient in Asia and Europe

Vinyl Ester Resin Prices Dip Amid Weak Demand and Sufficient in Asia and Europe

  • 30-Sep-2024 3:10 PM
  • Journalist: Jacob Kutchner

In the past week, the Vinyl Ester Resin (VER) market experienced a notable downward trend across both Asian and European regions, primarily due to weak demand and ample supply. In China, VER prices significantly declined, driven by lower import costs and sluggish demand from downstream sectors like Fiberglass Reinforced Plastics (FRP) in the automotive and construction industries, which were impacted by severe weather conditions and reduced feedstock prices. Similarly, in Europe, particularly Spain, the VER market followed a downward trajectory as demand remained soft, coupled with a decline in feedstock Epoxy Resin prices. As a result, the price of VER Novalac-based FOB Barcelona (Spain) dropped by 0.3%, while the Chinese VER Novalac-based CFR Qingdao saw a 0.5% decrease during the week ending September 20, 2024.

In Europe, the VER market faced a downturn, with prices showing a marginal decline while overall market conditions remained relatively stable. The VER prices was largely supported by steady feedstock Epoxy Resin costs, yet weak demand, especially from the construction sector contributed to an oversupplied market, driving price softness. Although the automotive sector offered some support for VER consumption, it was insufficient to offset the sluggish activity in construction. Hopes for a demand recovery following the summer lull have not materialized, as the market continues to grapple with weak demand and ample supply. 

In Asia, particularly China, VER prices experienced a notable decline due to weak demand from key downstream sectors like automotive, construction, and fiberglass-reinforced plastics (FRP) production. The combination of sufficient supply and easing feedstock Epoxy Resin prices in the region exerted downward pressure on VER prices. Although the FRP sector, a significant driver of product demand, maintained stable production, it could not offset the lackluster performance of the construction and automotive industries. Additionally, the anticipated seasonal slowdown with the onset of winter has led manufacturers to contemplate production cuts to manage excess inventories. The situation was further exacerbated by logistical disruptions caused by Typhoon Bebinca, which brought heavy rains and widespread flooding, delaying transportation during the Mid-Autumn Festival, and compounding the already sluggish demand. This environment of uncertainty has left market participants navigating a challenging landscape of oversupply, reduced demand, and logistical hurdles.

According to ChemAnalyst, the price of VER is anticipated to rise in October 2024 across both Europe and Asia, driven by a potential rebound in demand associated with the festival season. This seasonal uptick in consumption could help alleviate some of the recent downward pressure on prices. Further, fluctuations in the cost of feedstock Epoxy Resin are expected to play a significant role in shaping the price trend for VER. In Asia, the impact of recent typhoons, along with severe weather conditions and disruptions in the Middle Eastern region, could further complicate supply chains and pose logistical challenges.

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