For the Quarter Ending March 2024
North America
In Q1 2024, the North American market for Epoxy Resin experienced a mixed pricing environment, with significant factors influencing market prices. The overall trend for Epoxy Resin prices in the region was stable, with some fluctuations in specific countries.
In the USA, which saw the most price changes, the market experienced a bearish trend. Prices decreased by 9% in December 2023, primarily due to diminished demand from the downstream construction industry. The low purchasing activity during the winter holiday period further contributed to the decline in demand. However, there was a slight recovery in January 2024, with prices decreasing by 4% compared to the previous month. This stabilization was driven by improved supply conditions and a balance between demand and supply dynamics. Looking at the quarterly comparison, there was an overall decrease in prices compared to the same quarter last year.
Additionally, there was a decrease in prices from the previous quarter in 2024, recorded at an unknown percentage. Throughout the quarter, the market experienced seasonality, with lower demand during the winter holiday period. However, the market showed signs of stability and recovery as the quarter progressed. The latest quarter-ending price in the USA was USD 3344/MT of Epoxy Resin Liquid (EEW 176-183) DEL Texas. Overall, the pricing environment in the North American region for Epoxy Resin during Q1 2024 can be described as stable, with some fluctuations and a bearish trend in the USA.
Europe
In Q1 2024, the European market for Epoxy Resin experienced a challenging pricing environment, with significant factors influencing market prices. The market saw a bearish trend, characterized by low demand and ample product supply. The cost of feedstock Epichlorohydrin (ECH) and Bisphenol A, essential raw materials for Epoxy Resin production, experienced notable decreases during this period, contributing to lower production costs. Additionally, the influx of cheaper imports from overseas further increased the supply of the product in the market. Germany, in particular, witnessed the maximum price changes in the region. The market in Germany followed the overall European trend, with a bearish sentiment due to subdued demand and increased product supply. The low purchasing activity during the winter holiday period further impacted the demand for Epoxy Resin in the country. However, there were signs of improvement in manufacturing activities, although the sector remained in contraction. Overall, the pricing environment for Epoxy Resin in Q1 2024 was negative, with prices experiencing a significant decline compared to the same quarter last year. The price changes from the previous quarter in 2024 were also negative, reflecting the ongoing bearish market conditions. As of the end of the quarter, the price of Epoxy Resin Liquid FD Hamburg in Germany was recorded at USD 2822/MT.
APAC
In the APAC region, the pricing environment for Epoxy Resin in Q1 2024 has been characterized by various factors that have influenced market prices. Overall, the market has experienced stability, with moderate supply and demand dynamics. The construction industry has remained a key driver of demand for Epoxy Resin, with seasonal factors impacting the market. Meanwhile, the supply of the product has been influenced by factors such as the availability of raw materials and imports from overseas. Additionally, the price of feedstock ECH has played a significant role in shaping market prices, with fluctuations in this key input impacting the production cost of Epoxy Resin. Turning to Japan, the market has seen significant price changes during this quarter. The price of Epoxy Resin in Japan has witnessed a notable increase, driven by high demand from the construction industry. However, this increase in demand has been accompanied by low supply conditions, resulting in a bullish market sentiment. The cost of feedstock ECH and upstream Propylene has also contributed to the upward trajectory of prices. Moreover, challenges in the supply chain, such as elevated freight rates, have added further complexity to the market dynamics. Overall, the pricing environment for Epoxy Resin in Q1 2024 has been positive in Japan, with a notable increase in prices. This trend reflects the strong demand from the construction industry and the challenges in the supply chain.
For the Quarter Ending December 2023
North America
In the North American region, the Epoxy Resin market experienced a bearish trend in the fourth quarter of 2023, characterized by several factors impacting market dynamics and prices.
The foremost factor contributing to this trend was a decrease in demand, primarily attributable to challenges within the construction industry, leading to diminished buying interest among end-users. Furthermore, the supply of Epoxy Resin remained consistently high throughout the quarter, as manufacturers proactively produced the product in anticipation of future demand. However, the abundant availability of the product in the market exerted downward pressure on pricing. The United States, being the focal point of this analysis, witnessed a substantial downturn in Epoxy Resin prices during the quarter. Specifically, the price of Epoxy Resin in the USA recorded a noteworthy 16% decrease compared to the previous quarter. This decline was predominantly driven by the confluence of low demand and ample supply in the market. Additionally, the year-on-year comparison reflected a significant 28% decrease in prices for the same quarter of the previous year.
The latest prices of Epoxy Resin Liquid (EEW 176-183) DEL Texas in USA at the quarter ending December 2023 was USD 4217/MT. The prevailing pricing trend in the USA during this quarter was profoundly influenced by the aforementioned factors, collectively contributing to a bearish market sentiment. In summary, the market dynamics for Epoxy Resin in North America during the fourth quarter of 2023 were predominantly shaped by low demand, ample supply, and a discernible downward pricing trend in the USA.
APAC
In the Asia-Pacific (APAC) region during the fourth quarter of 2023, the Epoxy Resin market exhibited a bearish trend influenced by several significant factors impacting prices. Primarily, a noteworthy surplus in Epoxy Resin supply was observed, attributed to a concurrent reduction in the price of upstream Crude Oil. This surge in supply contributed to a bearish market scenario in both China and Japan. Secondly, contrasting this trend, demand for Epoxy Resin remained stable in India, fostering a bullish market situation. The stability in demand was linked to anticipated improvements in economic activities within the country. Zooming in on Japan, a country with substantial price variations, the pricing trend for Epoxy Resin solid (EEW 500-560) FOB Osaka portrayed a bearish market situation characterized by ample supply. The price experienced a 3% decrease compared to the previous quarter, exhibiting a negative correlation of 16% compared to the same quarter last year. In conclusion, the APAC region encountered fluctuations in Epoxy Resin prices in the fourth quarter of 2023, influenced by factors such as abundant supply, stable demand, and the absence of reported plant shutdowns. The latest recorded price for Epoxy Resin Liquid (EEW 176-183) FOB Osaka in Japan during this quarter stands at USD 3773/MT.
Europe
The Epoxy Resin market in Europe faced notable challenges during the last quarter of 2023, characterized by a bearish sentiment. The market contended with weakened overall demand from the downstream paints and coating industry, supply chain disruptions in countries like Germany and Belgium, and a bearish pricing strategy adopted by manufacturers. Germany, being the largest market in the region, saw destocking activities impacting prices. Despite ample product availability, the market found support in expected economic improvements and increased demand from the construction sector. The quarter ended with the latest price of USD 3367/MT for Epoxy Resin Liquid FD Hamburg in Germany. Comparing the quarter, there was a significant 31% decrease in prices compared to the same quarter of the previous year and a 15% decrease compared to the previous quarter. In summary, Europe's Epoxy Resin market grappled with challenges in Q4 2023, balancing low demand and supply chain disruptions with glimpses of optimism in economic activities and increased demand in specific sectors.
For the Quarter Ending September 2023
North America
During the third quarter of October 2023, the North American Epoxy Resin market displayed a volatile performance. In the United States, the Epoxy Resin prices experienced a mixed trajectory. In the initial and final months of the quarter, prices declined by approximately 1% and 5%, primarily due to decreased demand from the construction sector, which faced challenges. Nevertheless, the U.S. Construction industry reported an addition of 11,000 jobs in September 2023, with historically low unemployment rates prompting wage increases. In the second month of the quarter, Epoxy Resin prices rebounded, rising by around 1.2%, driven by a 4% increase in upstream Glycerin prices. Supply and logistics disruptions during the quarter were exacerbated by a hurricane affecting the southeastern United States, causing disruptions at airports, cargo ports, and distribution hubs and centres. The impact cascaded across industries, particularly affecting parcel delivery companies, with facilities temporarily closing in affected regions. This led to ongoing delays and service disruptions, particularly in Florida and Georgia.
APAC
During the third quarter of October 2023, the APAC region experienced a varied performance in the Epoxy Resin market. In the initial month, China saw a significant price drop of around 3% due to an oversupply of products and reduced demand caused by typhoon weather and heavy rainfall. Construction activity in South and East China was hindered, leading to slow market demand and high manufacturer inventories, resulting in a weak market. Extreme weather conditions affected the downstream construction industry, exacerbating the supply-demand imbalance. In response, manufacturers resorted to price reductions and promotions. However, prices rebounded in the last two months of the quarter, increasing by approximately 1% and 1.8% due to rising raw material costs. Major enterprises frequently adjusted their prices to accommodate these cost hikes, driven by increases in raw materials such as bisphenol A and ECH, driven by the upward trajectory of dual raw materials phenol/acetone. Looking ahead, concerns about international crude oil supply constraints may lead to price hikes in downstream products, creating a shortage of circulating resources and an urgent need for replenishment as the festive season approaches. In the short term, bisphenol A is expected to maintain its strong position, and increased feedstock prices set a bullish trend for the Epoxy Resin market in China, influencing overall market dynamics.
Europe
Throughout the third quarter of October 2023, the European region witnessed a bearish trend in the Epoxy Resin market. The German market, in particular, experienced a significant price decline of approximately 6% during the quarter, The demand for the product from the downstream construction industry was almost stable as the European Central Bank's decision to raise its key interest rate to a historic high. This move by the central bank was part of its ongoing efforts to combat persistent high inflation, which has been impacting consumers. The manufacturing sector witnessed a contraction, reflecting the challenging economic conditions at the close of the third quarter. Despite falling input costs, businesses continued their efforts to cut costs, as evidenced by ongoing reductions in employment, purchasing activity, and inventories. Consequently, many firms extended their production cutbacks throughout the quarter, reflecting the cautious and uncertain economic outlook. However, the price of feedstock ECH increased by around 1.2% in the German market but did not affect the product pricing.
For the Quarter Ending June 2023
North America
The United States Epoxy Resin market experienced a decline in prices during the second quarter of 2023. This decrease can be primarily attributed to the reduced feedstock Epichlorohydrin (ECH) cost. During this period, feedstock ECH's price decreased by approximately 5.8%, 0.5%, and 3.6%, respectively. Consequently, the price of Epoxy Resin decreased by approximately 3% in both May and June. However, the product's price remained stable in the initial month of the quarter due to a balanced equilibrium between demand and supply. Additionally, the reduced consumption of downstream products in sectors such as paints and coatings, automotive, and building and construction further impacted the market during the final two months of the quarter. Moreover, the product supply within the country remained high, and no shortages of materials were observed during this quarter. Furthermore, the availability of financing and lending options for construction projects was disrupted by two significant factors: the labor shortage in the USA and the banking crises following the failures of Silvergate Bank, Signature Bank, and Silicon Valley Bank (SVB). Construction companies often rely on banks and financial institutions to secure loans and credit lines for funding their projects. The failure of SVB resulted in reduced available credit or stricter lending standards. As a result, the construction industry encountered difficulties in securing the necessary capital for their projects, potentially leading to delays or cancellations in demand for construction products. The decrease in demand for construction products directly impacted the prices of Epoxy Resin.
APAC
In the second quarter of 2023, the Asian market experienced a decrease in the price of Epoxy Resin. In Japan, the price of products increased by 1% in April 2023, while in May and June, the prices fell by 5% and 3.5%, respectively. Similarly, in China, the prices of Epoxy Resin decreased by around 2%, 6%, and 5% in April, May, and June 2023. The major reason behind this price trend was the lower cost of upstream Propylene, as it declined nearly 0.5%, 3%, and 11.5% in April, May, and June 2023, respectively. The end-use construction industry was trying to get revived during this quarter but did not perform well due to sluggish overseas demand from USA and Europe. In India, the Price of Epoxy Resin decreased by around 4.3%, 3.0%, and 3.0% during this quarter as the demand for the product from the downstream Epoxy Resin market decreased, whereas the supply was high across the region. The Chinese construction PMI fell below threshold limits indicating the economic slowdown and demand for Epoxy Resin remained declined in China's domestic market during this period.
Europe
In the second quarter of 2023, the European Epoxy Resin market experienced a bearish market trend situation. The price of Epoxy Resin decreased by approximately 3% in all three months as the price of upstream Propylene decreased by around 3.6%, 12%, and 13.3%, respectively, during this quarter. The oversupply of upstream Propylene over the low demand from the petrochemical industry led to this situation in the country. Furthermore, macroeconomic factors such as high inflation have negatively affected consumer spending, further contributing to the bearish sentiment in the market. The buying momentum from derivative sectors, particularly constructions, and consumer goods, has significantly weakened as many buyers prioritize maintaining minimal inventories and acquiring materials only when necessary. The strike by dock workers at the Port of Hamburg, Germany, is the nation's busiest and the second busiest in Europe. This strike impacted the export of Epoxy Resin and further helped to decline the product's price in the country. Moreover, at the end of this quarter, the price of Epoxy Resin Solid FD Hamburg (Germany) was hovering around USD 3509/MT.
For the Quarter Ending March 2023
North America
The sluggishness in the global Epoxy resin market has resulted in weak prices of the material produced, exported, or imported into the US during the first quarter. Asian markets and European markets witnessed a drop in demand for Epoxy resin; thus, the exports to these countries have been snug, while the declining demand in the Asian countries meant low prices of the material onto the US shores as Asian exporters, especially China, looked to send the material. Meanwhile, the demand from downstream coatings and electronics industries has been weak, culminating in weak offtakes. Thus, in March 2023, Epoxy resin prices were assessed at USD 5215 per MT.
APAC
In the first quarter of 2023, Epoxy resin prices dropped consistently owing to weak demand dynamics and easing the cost of production. Feedstock Epichlorohydrin and Bisphenol A witnessed a constant reduction in their price during this time resulting in soft cost support for Epoxy resins. Meanwhile, the Diminished demand that this commodity was receiving from downstream companies, as well as a decline in shipping, all contributed to the price drop. Epoxy resin supplies were being made on a regular basis, without any difficulties, and in standard volumes, while the consumption rates from electronics, coatings, and adhesives industries remained largely steady. Thus, after the conclusion of Q1, Epoxy resins prices were assessed at USD 3520 per MT.
Europe
Epoxy resin prices showed a bearish trend throughout the first quarter of 2023. The lower costs of epichlorohydrin and bisphenol A, the product's base materials, as well as the decreased demand for this commodity from businesses downstream, contributed to the price drop. Feedstock Bisphenol A imports remained steady on European shores due to sluggishness in the freight market resulting in weak cost support. Meanwhile, the imports of Epoxy resins from the Asian markets as well as from the US have remained firm in the European market resulting in ample material availability. Thus, after the conclusion of the first quarter of Q1, Epoxy resin prices were assessed at USD 4800 per MT.
For the Quarter Ending December 2022
North America
In this quarter, the Epoxy Resin markets in North America were identical to those in Japan and India. The prices of this product were affected by lower costs of Bisphenol A, propylene, and epichlorohydrin. This product's cost was also influenced by the amount of interest it was receiving from downstream companies. Due to the higher production and operational costs, downstream companies showed average interest in this product, which resulted in good volumes of this product remaining in inventories and not being traded. However, upstream companies did not stop their manufacturing activities, and production rates were found to be modest.
APAC
Epoxy Resin witnessed mixed market sentiments in the Asia-Pacific region this quarter. The average demand for this product from paints & coatings, adhesives, and electronics companies for their manufacturing purposes led to a decrease in the market for this product in Japan and India during this quarter. The price drop was also facilitated by decreased epichlorohydrin and bisphenol A, the product's base materials. When it came to China, the Epoxy Resin market was expanding primarily due to the product's limited availability and low demand. Production was hampered due to the continuation of Covid- 19 restrictions, yet there were no plant shutdowns.
Europe
The markets for Epoxy Resin in Europe and North America were similar this quarter. This quarter also saw a decrease in the cost of base materials in Europe, which contributed to the product's lower prices. The ongoing conflict between Russia and Ukraine was cited for the rise in the cost of natural gas, which had caused upstream companies that make epoxy resin to become concerned and alter their production practices. Nevertheless, they did not stop or close their production. The moderate demand for this product from downstream businesses, who were also concerned about the aforementioned factors, was another aspect of the product's market decline.
For the Quarter Ending September 2022
North America
The North American Epoxy Resin markets were identical to that of Japan and China markets in the third quarter of 2022. The cost of this product was mainly influenced by the amount of interest that this product was received from downstream companies and these companies showed an average interest for this product because of higher production and operational costs; because of this, good volumes of this product were present in inventories without getting traded. Reduced costs of Bisphenol A, propylene, and epichlorohydrin did impact the prices of this product. So, Epoxy resin closed its market this quarter in the U.S. at USD 6,596 per MT (for liquid grade EEW-176-183) on DEL – Texas basis.
APAC
The market sentiments of Epoxy Resin varied from country to country in the Asia – Pacific region. In China, the market for this product went down in this quarter, primarily because of the sluggish demand for this product from paints/coatings, adhesives, and electronics companies for their manufacturing purposes. It was because of the inadequate power supply that these companies had to stop or lower their production activities completely. Reduction in epichlorohydrin and bisphenol A, base materials used in making this product, also paved the way for the prices to step down. SINOPEC, a major Epoxy Resin producer, had closed one of its manufacturing units owing to a lack of electricity. In the final week of this quarter, this product was getting traded at USD 3,179 per MT (for liquid grade EEW- 176-183) on FOB – Huangshan basis. When it comes to India, the epoxy resin market was witnessing ups and downs, mainly driven by the interest that the downstream companies were showing towards this product. The market of this product in Japan was identical to that of China in this quarter.
Europe
In this quarter, European Epoxy Resin markets too were like that of China and the U.S. The vital reason for the downfall of this product’s market was the moderate demand that this product was experiencing from downstream companies. There were logistical issues, higher energy costs, and uncertainties in power supply, all of which were attributed to the ongoing Russia – Ukraine conflict, which made these companies concerned and modify their production activities. Alike other markets, base materials’ cost in Europe also got lowered in this quarter, which also had a hand in pulling down the costs of this product. In the final month of this quarter, the cost of this product stood at USD 5,868 per MT for liquid grade on FD – Hamburg basis.
For the Quarter Ending June 2022
North America
The North American region witnessed a firm price trend for the Epoxy region, which fluctuated marginally at the end of the quarter. The product prices rose moderately by 5% from the previous quarter during quarter 2 of 2022. For 1st two months, the product prices were stable and rose marginally due to the rise in feedstock Epichlorohydrin costs, which stabilized towards the end of the quarter, impacted the product costs of Epoxy Resin in Q2, and Epoxy resin prices decreased slightly at the end of Q2. Additionally, the energy and fuel costs during the period induced cost pressure on the product’s overall values, and the demand and offtakes remained average in the domestic market.
Asia
In the Asian region, the price trend of Epoxy Resin remained stagnant throughout the quarter, and the price fluctuated marginally by 1 to 2% from the last quarter. However, feedstock Epichlorohydrin prices oscillated in the region throughout the quarter due to fluctuations in upstream cost. In China, product prices decreased slightly during H1 due to the availability of product stocks, and product costs rose fractionally towards the end of the quarter. However, production rates curtailed after the reopening of China’s Shanghai port after three months hiatus as product stock inventories were excessively available in China. The demand for the resins remained firm from downstream paint industries, and product offtakes were consistent in the market throughout the Q2.
Europe
The price trend of Epoxy Resin remained strong and increased consistently throughout quarter 2 of 2022, and product prices rose by 24% from the previous quarter in the European region. At the H1 of the Q2, the price rose significantly by almost 12% after a plunge in feedstock ECH costs post-global inflation. Then the product prices rose slightly till the end of Q2 due to the marginal rise in feedstock Epichlorohydrin costs. Energy and gas costs also increased in the country due to gas supply shortages which induced cost pressure, boosting the overall product’s price. The demand remained stable from the end-user paint industries, and resin’s offtakes were moderate in the regional market.
For the Quarter Ending March 2022
North America
Epoxy resin demand in the USA finally saw some shoots of recovery as spot trade volumes in Texas picked up the pace by the third week of January. General-purpose liquid epoxy resin demand in the US remained strong during February amidst high consumption for filament winding, electrical laminates, and encapsulation applications. Solid Epoxy market has been buoyant since the beginning of 2022 in the USA. Epoxy Resin prices surged in North America with prices ranging between USD 6341/ton-USD 6777/ton Epoxy Resin Semi-Solid in the USA in March. Epoxy Resin prices are expected to remain in upswing in the coming quarter as well under the expectations of consistent demand from end-use segments.
Asia Pacific
Epoxy contracts for February were deemed higher by 9.3% in Q1 2022 than the last quarter by domestic manufacturers considering higher upstream cost pressure. Epoxy Resin prices were observed at USD 3700/ton Epoxy Resin for Semi-Solid grade in China in February whereas in India Epoxy Resin prices remained volatile in the same month. Supply tightness and lower inventories levels continued till the end of the quarter due to which as raw material costs faced upward pressure in late March. The Asian epoxy market witnessed an increase in demand from the end-user industries such as construction as both public and private investments in infrastructure increased in China and India.
Europe
In Europe, Epoxy Resin prices were assessed at USD 5370/ton, with an overall increase of 1.9% in Q1 2022 in Germany. The freight charges also surged as soon as the war began between Russia and Ukraine, which affected the revenues in Germany as it exports around 10.2% of the world's total Epoxy Resin export to Asian and European countries. A steep hike in raw material costs on the back of the exorbitant surge in natural gas prices remained a significant factor that shifted the market dynamics of major European economies like Germany. In addition, rise in the prices of Bisphenol A and Ethylene Chloride (ECH) in the international market also aided the pricing trend of Epoxy Resin in the region.
For the Quarter Ending December 2021
North America
North American Epoxy Resin prices in Q4 had been on the higher end compared to the prices in Q3 of FY21. The prices of Liquid, Solid and Semi-solid resins were assessed 15%, 10% and 12% higher on an average compared to the prices in Q3 of FY21 on a DEL Texas basis. The prices of critical raw material epichlorohydrin had registered a similar trend in consonance with the quarterly trend of Epoxy resin. Production recovered to normalcy after the hurricane season only by late October and mid-November as supply of raw materials was tight during the first half of Q4. The quarter ending December also saw a structural change in the Epoxy market dynamics with Hexion announcing sale of its Epoxy business to Westlake which could have an impact on the North American and European Epoxy Markets with prices expected to quote lower than the previously forecast prices for Q1 of FY22.
Asia
The Asian epoxy market witnessed an increase in demand from the end user industries such as construction as both public and private investment in Infrastructure increased in China and India. The quarterly average prices for the liquid, solid and semi-solid epoxy resins had seen an increase of 8.5%, 11% and 12% respectively in China from the Q3 averages when assessed on an FOB Huangshan basis. The percentage increase for the corresponding grades of epoxy in India was 1.7%, 2.7% and 1.9% respectively when assessed on an Ex-location (Mumbai) basis. The outlook for Q1 of FY22 looks bullish as the prices of upstream propylene in USD/mt terms went up significantly higher in North-East Asia and South Asia and which could impact the prices down the value chain including critical epoxy raw materials like Epichlorohydrin and Bisphenol in the coming weeks.
Europe
European epoxy market too witnessed a similar trend to that of Asia and North America as demand was considerably higher during the quarter ending December FY21. The prices of epoxy too were on an average assessed higher with percentage increases of 14%, 8.3% and 10.3% for the liquid, Semi-solid and solid epoxy resin respectively. Supplies of Epichlorohydrin were pricier and in lower quantities in the domestic market and supplies from North America and Asia too were costly thus choking production. The average prices for liquid, solid and semi-solid resin for Q4 assessed on an FD Hamburg basis stood at 3685 USD/mt, 3270 USD/mt and 3070 USD/mt respectively. Prices are expected to be higher for Q1 of FY22 but could be on the lower end of the earlier forecast prices as demand in January and perhaps February could be affected by the rising number of Omicron cases across Europe.
For the Quarter Ending September 2021
North America
In the third quarter of 2021, Epoxy Resin market in North America experienced an upward rally backed by the constant growth in the values of feedstocks Bisphenol A and Epichlorohydrin along with the sturdy demand from the downstream paints and coatings sector. Additionally, in the mid of the quarter, severe climate calamity in the Gulf Coast of the US led to the curtailment in the production rates and disrupted the supply chains which consequently fumed the prices of Epoxy Resin in this timeframe. Expected growth in the construction sector is likely to surge the demand for Epoxy Resin in the upcoming quarter in the region.
Asia
In Q3 of 2021, an exponential rise in the prices of Epoxy Resin was witnessed in the Asian markets backed by the spike in the feedstock prices amidst the strong demand from the downstream industries. After the rebound in the industrial as well as commercial activities, the demand for Epoxy resins was fueled from the adhesives and coatings segment. In India, a steep climb in the prices of Epoxy Resin was witnessed in this quarter supported by the hike in the feedstock Bisphenol A prices. Moreover, extreme freight charges and limited availability of shipping containers further sent ripples to the prices of Epoxy Resin in the region. Thus, Ex- Mumbai prices of liquid Epoxy Resin were accessed at USD 5405.35/MT in September showcasing an increment by USD 278/MT since July 2021.
Europe
In Europe, Epoxy Resin market outlook appeared to be bullish with robust demand from the downstream sectors and tight fundamentals in the Q3 of 2021. In addition, surge in the prices of Bisphenol A, in the international market also aided the pricing trend of Epoxy Resin in the region. Moreover, exorbitant freight charges across the Europe-US and Europe-Asia interoceanic trade-routes and critical shortage of shipping containers further pushed up the prices of Epoxy Resin and its derivatives throughout the quarter in Europe.
For the Quarter Ending June 2021
North America
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.
Asia
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.
Europe
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
North America
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.
Asia
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
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
North America
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.
Asia
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.
Europe
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.
