For the Quarter Ending March 2024
North America
In Q1 2024, the North American market for Vinyl Ester 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. 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 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. 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. Overall, the pricing environment in the North American region for VER during Q1 2024 can be described as stable, with some fluctuations and a bearish trend in the USA.
APAC
The first quarter of 2024 has seen a significant increase in prices for Vinyl Ester Resin (VER) in the APAC region. This upward trend can be attributed to several factors that have influenced market prices. Overall, the market has experienced a positive pricing environment, with prices increasing steadily throughout the quarter. In China, the largest market for VER in the region, prices have seen the maximum price changes. The market has been driven by strong demand from various industries, including automotive and construction. The increased demand has led to a surge in prices, with the market experiencing a 30% increase compared to the previous quarter. Additionally, there has been no significant change in prices between the first and second half of the quarter, indicating stability in the market. Looking at the year-on-year comparison, prices have decreased by 13% in the first quarter of 2024. However, this decrease is overshadowed by the significant increase in prices compared to the previous quarter. The initial surge in January 2024 in China for VER Novalac-based CFR Qingdao was 2% followed by stability for the next two months, reflecting the positive pricing environment in the market. Overall, the pricing environment for VER in the APAC region during the first quarter of 2024 has been positive, with prices steadily increasing. The strong demand from various industries, particularly in China, has been the main driving force behind the price surge.
Europe
The Vinyl Ester Resin (VER) market in Europe during Q1 2024 experienced a fluctuating trend as the prices mostly declined but rebounded in March. Several significant factors influenced market prices during this period. Firstly, there was a lack of demand from both domestic and Asian markets, particularly from the downstream composite manufacturing sector, including the construction and automotive industries. This subdued demand was further exacerbated by an increase in supply, driven by lower feedstock costs and heightened domestic production levels. Additionally, the cost of feedstock Epoxy Resin decreased in the European market, reducing production expenses for VER. In Spain specifically, the market saw the maximum price changes during Q1 2024. Prices declined significantly, primarily due to weak demand from the domestic market and decreased buying activity from the downstream industries. The construction sector in Spain faced challenges, with declining new orders and residential construction activity. The overall market conditions remained firmly within a contraction phase. Comparing the first and second half of the quarter, there was no specific information provided regarding price differences. However, the price in Spain for VER Novolac-based FOB Barcelona saw a surge of 2% in March after a decline of 2% and 1% in January and February respectively. Overall, the pricing environment for Vinyl Ester Resin in Europe, particularly in Spain, was negative during Q1 2024. The bearish market conditions were driven by weak demand, increased supply, and lower feedstock costs.
For the Quarter Ending December 2023
North America
In the North American region, in the fourth quarter of 2023, the Vinyl Ester Resin(VER) showed a bearish price trend. The market experienced a decrease in demand due to challenges in the construction industry, resulting in low buying interest from end-users.
Additionally, the supply of VER remained high throughout the quarter, as manufacturers produced the product under the expectation of future demand. However, the ample availability of the product in the market affected pricing. Furthermore, the USA, being the primary country of focus, witnessed a significant downturn in VER prices during this quarter. No plant shutdowns were reported during this quarter, further supporting the consistent supply of VER.
The pricing trend in the USA during this quarter was influenced by various factors, resulting in a bearish market sentiment. Overall, the market dynamics for Vinyl Ester Resin(VER) in North America during the fourth quarter of 2023 were driven by low demand, ample supply, and a downward pricing trend in the USA.
APAC
The APAC region's Vinyl Ester Resin (VER) market in Q4 2023 experienced mixed pricing trends as initially the price declined, however, it rebounded by the end of the quarter. The demand for VER remained moderate in most of the countries due to the bearish demand situation from downstream coating and adhesive businesses. However, China's VER market witnessed a bullish trend due to robust demand leading to an increase in prices. The increased demand and insufficient product availability prompted sellers to raise prices. The fluctuations in feedstock Epoxy Resin costs impacted the price trajectory of VER in the Asian market. The factors that impacted the market were the increased demand for VER, sufficient inventories amid bearish demand, and anticipated growth in demand from downstream industries, which led to higher prices for VER. The correlation price percentage for China was positive, indicating a strong relationship between demand and price. The latest prices of Vinyl Ester Resin-Novalac Based CFR Qingdao in China at the quarter ending December 2023 was USD 3040/MT.
Europe
In the fourth quarter of 2023, the European Vinyl Ester Resin market exhibited a mixed trajectory characterized by initial and mid-quarter price highs followed by a decline by the quarter's end. The upsurge in prices was primarily attributed to the volatility in feedstock Epoxy Resin prices leading to increased manufacturing costs and creating a market situation. Furthermore, during this period, the region witnessed disruptions in its supply chain, intricately linked to elevated spot prices of refined products on the US West Coast. The production losses had a looming impact on VER prices, which were already experiencing upward momentum due to supply constraints and refinery shutdowns. An additional factor contributing to the supply chain disruption was the drought situation at the Panama Canal. This rare weather phenomenon presented navigational challenges for vessels, hindering their passage through the canal. To address this, the Panama Canal Authority implemented a premium on the passage of the heaviest and largest ships, effectively reducing the volume of transported goods. The convergence of these factors underscored the intricate challenges faced by the European Vinyl Ester Resin market during this period.
For the Quarter Ending September 2023
North America
According to ChemAnalyst report, the cost of Vinyl Ester Resins (VER) experienced a declining trend in the third quarter of 2023. The United States' manufacturing sector faced challenges during this period, with a notable decrease in new orders and subdued domestic demand from the coating and construction industry. This challenging business environment led to significant reductions in inventory as companies scaled back their procurement activities. The performance of downstream manufacturing remained lackluster, adding to the constraints on global trade growth. The decline in new orders can be attributed to the prevailing economic conditions, which prompted customers to exercise caution when considering new contracts or purchases. While there were some inflationary pressures, they remained relatively moderate. The demand for Vinyl Ester Resins (VER) was weak during this period, primarily due to the absence of fresh orders from potential buyers. With an adequate supply of material to meet domestic needs and an average level of activity in the construction industry, there was no significant urgency to place new orders. This stability in demand contributed to the overall status in the Vinyl Ester Resins (VER) market.
Asia
In the third quarter of 2023, the price of Vinyl Ester Resins (VER) exhibited fluctuations in both the Indian and Chinese markets. In China, the VER market remained sluggish throughout the quarter, primarily due to subdued demand stemming from economic uncertainty. On the contrary, in India, at the start of the third quarter, there was an uptick in demand from the downstream coating and adhesives industry, driven by limited product availability in the market. Moreover, imports from other Asian nations saw an increase, propelled by heightened factory operations in response to decreasing inflation. However, midway through the quarter, VER prices experienced a decline. This decrease was attributed to relatively low demand from the coating and adhesive industry, likely impacted by the monsoon season, compared to the preceding month. Towards the end of the quarter, there was a monthly increment of 1% in VER prices in India. This price surge was attributable to the rising cost of the feedstock Epoxy Resin, driven by increasing crude oil prices in the Indian market. The price surge was further bolstered by heightened demand for downstream corrosion-resistant coatings, as well as in the manufacturing of composites and adhesive industries.
Europe
During the third quarter of 2023, the European Vinyl Ester Resins (VER) market witnessed a consistent decline in prices, primarily driven by weak demand from downstream industries. Spain, a significant player in the European market, faced deteriorating business conditions during this period. The economic challenges were marked by a rapid decrease in both business activity and new orders. Several factors, including rising interest rates, customer uncertainty, and broader inflationary pressures, played a role in creating this challenging business environment. These factors collectively pointed to a bearish demand for VER in the Europe market. The Europe manufacturing purchases index remained consistently below threshold limits throughout the quarter, highlighting the uncertainty in domestic economic activity. Moreover, there was a significant drop in new export orders, primarily due to reduced sales across Europe. The combination of these factors contributed to the overall declining trend in VER prices across the European region during the third quarter.
For the Quarter Ending June 2023
North America
The Vinyl Ester Resin (VER) market in North America witnessed a depreciation due to declining prices of feedstock Epoxy Resin. The product price remained stable in the initial quarter due to the balanced gap between supply and demand. However, it declined by the middle and end of Q2. The dip in prices in the last two months was primarily caused by the lackluster demand from the downstream industries using VER for the manufacturing of Fiberglass Reinforced Plastics (FRP) composites used in the construction and automotive industries and plastic industries for the manufacturing of pipes and tanks. Further, the product supply remained high during this period, with no shortage of material being observed. The sluggish demand can be attributed to the economic instability caused due to the banking crisis in the US. This has caused a decline in the construction sector growth, thus directly affecting the demand for VER in North America. However, as indicated by the Federal Reserve of Economic Data, the Consumer Price Index of the USA has shown a marginal rise from 302.91 in April 2023 to 303.29 in May 2023 and is expected to increase further.
APAC
In the second quarter of the year 2023, the Vinyl Ester Resin (VER) experienced a bearish price trend owing to the dull demand from the downstream construction and automotive industries. The low demand can be attributed to the global economic slowdown and reduced demand from the Chinese market. The feedstock Epoxy resin fell by 5% by the end of the quarter, thus supporting the declining price trend of VER. The Vinyl Ester Resin Novolac Based CFR Qingdao (China) prices were quoted to be USD 3497/MT in June. As per data from the National Bureau of Labor and Statistics, the Purchasing Manager Index(PMI) in China is declining and has been recorded at 48.8 in May 2023 after a marginal decline of 0.8% from the previous month along with a decrease in industrial growth rate from 5.6 in April 2023 to 3.5 in May 2023. Chang Chun Chemical (Panjin) has shut its liquid Epoxy Resin plant by the end of May 2023 for a maintenance turnaround. The plant is located in Panjin, Liaoning (China), with a plant capacity of 50,000 MT/year.
Europe
During the second quarter of the year 2023, the VER prices in Europe showed mixed sentiments as VER initially declined, but by the middle of the quarter, it gradually rebounded. However, the prices slumped by the end of Q2. The depreciation in the price of the product was majorly due to bearish market dynamics amidst the recession and a drop in the prices of feedstock Epoxy resin in the region. The European market has been impacted by the Russia-Ukraine war, which led to reluctance in the purchasing activities of consumers caused by market uncertainties. Further, downstream sectors of VER, including the automotive and construction industries, have been bleak due to the grim outlook on the world economy. The feedstock Epoxy Resin has seen a decline of 3% over the quarter, further supporting the downward trajectory of the product. Thus, the price of VER was USD 3879/MT Novolac-based FOB Barcelona (Spain) in June. Additionally, the inflation in Germany slowed down from 6.1% in May to 5.6% in June, as per data from the German Federal Statistical Office, but the Consumers Price Index declined by 0.1% in May 2023. Further, as indicated by Eurostat, the Producers’ Price Index of the region declined to 138.3 in May from 143.4 in March and is expected to decline further.
For the Quarter Ending March 2023
North America
The price of Vinyl Ester Resin in the United States dropped in the quarter ending March 2023, owing to large stocks and slower inquiries in the downstream automotive and other competitive industries. Furthermore, Vinyl Ester Resin's offerings in the US market were hampered by rising borrowing rates and dismal customer purchasing sentiments. The concluding talks of the commodity this quarter were affected by the Vinyl Ester Resin businesses' competitive cost pressure on the American domestic market. Furthermore, by easing the pressure on the Vinyl Ester Resin market participants' manufacturing costs, the stability in the feedstock Epoxy Resin also contributed to the commodity's present price trajectory.
APAC
In Asia, Vinyl Ester Resin prices fell with a slowdown in downstream momentum in the quarter that ended March 2023, owing to ample supply availability and competitive offers in the face of strong stock quantities. Businesses were apprehensive about the increasing stockpiles and declining output this quarter, which is why Vinyl Ester Resin inquiries were low in both the domestic and international markets. At the end of March 2023, However, market perceptions were different, with some traders blaming low-cost Asian goods and reduced freight costs. In March 2023, Vinyl Ester Resin offshore offers from other Southeast Asian markets continued to reflect a boring purchasing mentality despite the declining demand. Additionally, the feedstock Epoxy Resin shifting pricing this quarter had an impact on Vinyl Ester Resin prices.
Europe
The German Vinyl Ester Resin price trend saw a continuous decline in the quarter ending March 2023, with recent price drops at the end of March 2023. Prices fell in Germany as a result of weak demand from the downstream sector and the region's decreasing housing market. The rise in interest rates and the cost-of-living crisis put Vinyl Ester Resin customers under financial strain. High inflation, combined with poor economic growth, limited trading activity to Europe's essential requirements. Furthermore, market participants maintained a negative pricing momentum for the first quarter due to weak demand fundamentals and muted spot activity globally amidst competitive market circumstances and high stock levels.
For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, Vinyl Ester Resin in North America remained plunged as the demand remained muted. The prices of this product were affected by lower costs of feedstock Epoxy Resin. The product's costs were influenced by the amount of interest it was receiving from downstream companies. Amidst the higher production costs and operational costs, downstream companies showed average interest, which consequently resulted in higher inventories. The rising value of the US dollar further contributed to the decline in the price of commodities by weakening the buying sentiments from the importing countries. The poor downstream performance remained the major factor of the price decline in the market.
APAC
The prices of Vinyl Ester Resin in the Asian market were recorded to decline throughout the fourth quarter. Due to sluggish demand from the pipes, marine, and building sectors downstream, VER prices have dwindled in Taiwan markets. While in China, product price quotations rose during the mid-quarter amid affected supplies from exporters due to covid related restrictions. However, towards the end of the quarter, there was a plentiful supply of feed and Epoxy Resin available from domestic manufacturers at discounted prices; hence VER prices remained stable. Vinyl Ester Resin- Novolac Based FOB Taipei (Taiwan) prices were assessed at USD 3503/MT.
Europe
The price of Vinyl Ester Resin has got dipped slightly this quarter due to lower demand for this product from downstream firms and the decline in prices of feedstock. Supplies in the European region improved after the increase in water levels of the Rhine River and a fall in upstream costs. Along with varying crude oil prices in the domestic market, the demand for VER also remained muted. The inflation rate in the European region somewhat steadied; however, the prices of Vinyl Ester Resins followed southward momentum throughout the quarter. Vinyl Ester Resin- Novolac Based FOB Barcelona (Spain) prices were evaluated at USD 3905/MT.
For the Quarter Ending September 2022
North America
In the third quarter of 2022, Vinyl Ester Resin prices in North America climbed. Due to higher production and operating costs, downstream companies showed only average interest in this product, which resulted in good volumes of VER remaining in inventories untraded. As a result, the cost of this Vinyl Ester Resin was primarily influenced by the amount of interest that this product received from downstream companies. The prices of this product were affected by lower feedstock costs for epoxy resin and acrylic acids. The market for Vinyl Ester resin ended this quarter on a more vital note.
APAC
Throughout Q3 2022, Vinyl Ester Resin prices in the Asia-Pacific area remained at historic lows. Because of the weak demand for this product from manufacturers of paints, coatings, adhesives, and electronics in China, the market for this product declined this quarter. These businesses were forced to halt or drastically scale back their output because of the insufficient power supply. Price reductions were also made possible by lower costs for the base materials required to make this product, such as epoxy resin. Due to a scarcity of electricity, SINOPEC, a significant producer of epoxy resin, had to close one of its manufacturing facilities. Vinyl Ester resin prices in India continued to decline sharply, caused mainly by the downstream companies' interest in this product.
Europe
The markets for vinyl ester resin in Europe during this quarter were comparable to those in China and the US. The weak demand that this product was receiving from downstream companies was a key factor in the market's decline. The continuous conflict between Russia and Ukraine caused logistical problems, more significant energy costs, and unpredictability in the power supply, all of which made these businesses anxious and altered their production processes. Similar to other markets, base material costs in Europe decreased this quarter, which also contributed to lowering the price of this product. The price of this product, calculated on a FOB Barcelona basis, was USD 4075/MT in the last month of this quarter.
For the Quarter Ending June 2022
North America
In the second quarter of 2022, the prices of Vinyl Ester Resin followed the stagnancy throughout the quarter in the North American region. Vinyl Ester Resin prices hiked by 1.5% compared with the previous quarter on the back of static growth of feedstock and epoxy resin prices in the regional market. The demand from downstream sectors such as automobiles, marine equipment, and kitchen appliances was observed to be slow throughout the quarter, governing the market sentiment of VER in the regional market. Major manufacturers had to stabilize the market prices on lower terms as less inquiry about the product occurred in the country. These facets became the driving force for the price stagnancy in the North American region.
Asia Pacific
Overall market sentiments of Vinyl Ester Resins remained in a positive position in the Asia-Pacific market. Stagnancy in the prices occurred till the mid-quarter as the production rate in major countries such as China and Taiwan remained static on the back of continuous demand from end-users. On the other hand, the prices dwindled in June as natural calamities in China disrupted the operational rate of Vinyl Ester Resins, consequently declining the prices in the regional market. Increment in feedstock prices in the market and high electricity charges led to spiked production costs of Vinyl Ester Resin. On average, the prices of Vinyl Ester Resins witnessed a slight increment of 1.2% during the Q2 of 2022.
Europe
During the second quarter, the market trend of Vinyl Ester Resin tailed off in the European market on the back of declining demand from downstream coating and furnishing sectors. Despite the rise in feedstock, epoxy resin prices declined as the demand was less. The quarter started positively, but the decline was witnessed later as major manufacturers had ample supply to cater to the demand. The sales volume growth was satisfying for the manufacturers, but market dullness in the European region governed the market dynamics of Vinyl Ester Resin in the European region. Approximately a decline of 2% in the prices of Vinyl Ester Resin occurred in Q2.
For the Quarter Ending March 2022
North America
In the North American market, prices of Vinyl Ester Resins (VER) followed an uptrend throughput the first quarter of 2022. Market sentiments of VER were governed by the high feedstock epoxy resin values in the regional market. This hike in raw material prices forced manufacturers to increase the production cost of Vinyl Ester Resin (VER). Growth in construction activities in North America led to the increase in consumption of VERT in Q1 due to its anti-corrosive, durability, and waterproof properties. FOB prices of Vinyl Ester were quoted as USD 561/ton, in the month of January and USD 5549/ton, towards the quarter end.
Asia Pacific
In the first quarter of 2022, prices of Vinyl Ester Resin in the Asia Pacific market witnessed mixed amidst high volatility in the prices of feedstock. As China imposed lockdown after the Omicron infection, the production of Vinyl Ester Resin was halted. Port congestion also became the driving force of VER market leading to supply shortage across the region. In India, limited availability of VER reduced the profit margins for traders, despite of the firm demand from the downstream market. VER CFR prices in the first quarter were assessed at USD 4920/ton Novalac Based in the month of January and got assembled at USD 4840/ton, Novalac Based towards the quarter end.
Europe
In Q1 of 2022, Vinyl Ester Resin witnessed an uptrend in the European region owing to the high feedstock epoxy resin prices. Along with the supply shortage, feed disruption governed the market sentiments of Vinyl Ester Resin (VER). When compared with Q4 of 2021, prices of Vinyl Ester Resin witnessed a slight inclination of 1% in Q1 of 2022. The FD prices of Vinyl Ester Resin ranged from USD 4820/ton in January to USD 5050/ton, towards the quarter end. Supply disruption led to feedstock shortage which compelled manufacturers to reduce the output.
For the Quarter Ending December 2021
North America
In North America, the costs of Vinyl Ester Resin stayed on the higher end when contrasted with Q2 and Q3 due with healthy interest in the midst of solid downstream businesses. Feedstock Methacrylic acid market was slipped in November but recovered towards the end of the quarter where its prices were observed to be $2860/ton FOB USGC. Styrene market was also surged with the succeeding months where its prices in last week of December were $1340/ton FOB Texas. Downstream Laminating and construction industries were also operated strongly with increase in consumption of VER. Shortage of raw material Styrene in the region was also one of the main reasons for this price trajectory.
Asia Pacific
In Asia Pacific region, the price of Vinyl Ester Resin remained tepid with little fluctuation in the prices. In India, the prices were maxed in October where the prices of Super Vinyl Ester were hovering around $5727/ton Ex-Mumbai-$5864/ton Ex-Mumbai. The increase in the price of Vinyl Ester Resin is attributed to rising demand in the marine industries because of the chemical resistance that it offers. Furthermore, throughout this timeframe, the increased production of electronic components and automotive parts fuelled demand for epoxy resin for fabrication of combination materials that are light in weight. Container shortages and increased freight charges since past few months have been also incorporated in the prices. However, at the end of the quarter the prices slipped to $5660/ton Ex-Mumbai.
Europe
In Q4, amassing of Vinyl Ester Resin inventories and oversupplies dropped down the costs in Europe. In Germany, sentiments highlighted be imbalanced with weak interest. Broad production edges have so far addressed the additional price of Vinyl Ester Resin production, drove by basic production breaks in the final quarter that left its inventories wobbly. Downstream Fibre and construction industries however gave the strong support to the product where its consumption for the end user consumers remained strong.
