For the Quarter Ending June 2021
Disruptive weather condition during mid-February, forced several plants to induce a major turnaround, which curtailed the production activities and led to shortage of feedstock chemicals in the previous quarter. However, the production activities reached normalcy during the second half of Q2 2021, but prices remained high due to limited availability to satisfy the overall demand. Feedstock Bisphenol A prices traced upward trajectory due to high shortage, which reduced the availability of Epoxy Resin and eventually led to hike in its prices in USA. Therefore, prices of Epoxy Resin, were accessed at USD 4610/MT during mid of June in USA.
Hike in feedstock Bisphenol A prices affected the prices of Epoxy Resin in APAC market during this quarter. In China, prices of Epoxy Resin kept tracing upward trajectory due to sturdy demand from downstream segment, as the economic activities were consistently picking up pace after recovering from pandemic. While in India, second wave of pandemic declined the demand for Epoxy Resin in the country, but prices-maintained stability throughout the quarter due to the international cost pressure. Thus, prices of liquid Epoxy Resin were accessed at USD 2742/MT in India during mid-May 2021.
Consistent increment in prices of Bisphenol A, pushed up the prices of downstream derivatives across European region during Q2 2021. Decline in pandemic cases in some major countries of Europe, slightly increased the demand for Epoxy Resin during this quarter. However, the hike in prices of Epoxy Resin was primarily supported by huge rise in prices of Bisphenol A in the global market. In addition, increasing freight and production cost also influenced this global price hike in Bisphenol A and Epoxy Resin.
For the Quarter Ending March 2021
Epoxy Resins market in North America experienced firm demand amid critical supply of feedstock Bisphenol A during this timeframe. According to an estimation, more than 58% of Epoxy Resins production remained offline either by disruption from winter freeze or due to the shortage of feedstock chemicals. Several plants remained idled that reduced the supply across the region, like Olin declared force majeure on its freeport Texas plant due to unfavourable weather conditions. All these conditions contributed to push up the prices during this quarter.
The Asian market encountered shortage of key feedstock chemicals due to lower domestic output and firm demand from downstream sectors. Domestic demand for Epoxy Resin remained strong amidst shortage of upstream chemicals, which supported its prices as well. The domestic supply remained consistently low due to lower imports from Europe and USA. Prolonged shutdown of Kukdo chemical plant in China also affected the supply across the region. In India liquid Epoxy price rose from USD 2287 per MT (January 2021) to USD 2580.55 per MT (March 2021), while in China prices rose from FOB USD 3500 per MT (January 2021) to USD 3773 per MT (March 2021).
Europe faced huge increment in prices of Epoxy Resins due to lower feedstock, Bisphenol A availability across the region. The prices of Epoxy Resins across the region rose by more than 55% quarter over quarter due to significant rise in feedstock chemicals. Another reason behind this hike was freight prices which recorded consistent hike and reached 4 times the prices in Q4 2020.
For the Quarter Ending September 2020
Epoxy Resin supply in the Asian countries remained tight due to some planned and unplanned outages in some production units. Increase in demand as several downstream units resumed construction projects after a considerable lift in lockdown restrictions paved the way for better producer’s margins. The price of Epoxy Resin showed a declined trend in September and was assessed to be USD 2640 per tonne This decline in price is attributed to soften in demand from construction sector and paints & coatings industries across the Asian countries.
Epoxy Resin production in the region remained stable during Q3 owing to normalized operations by manufacturers across the region. Sturdy demand for Epoxy Resins from various end-user industries during Q3, buoyed by better construction and auto activity bolstered the market sentiments. Also, the overall production remained sufficient to meet the regional demand despite disruption in import volumes in Q3. Spolchemie A.S., one of the leading manufacturers of Epoxy Resin in Czech Republic announced shut down of its production plants in Q3 with delayed resumption of one of its unit.
The North American Epoxy Resin market witnessed stable supply during Q3 on account of usual imports from the Asian countries. Ample supply has impacted the overall product prices which eased on account of low-priced imports from the countries like China. The US Epoxy resin price were settled around USD 3011 per tonne during the quarter ending September. Downstream automotive and construction segments showed quick revival from the pressured dynamics but slowed demand from the aerospace still bothered some regional producers who preferred to maintain a wait-and-see stance.