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.
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.
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.
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.
