There has been a significant change in the global epoxy resins landscape in the first two months of 2017. It was only last summer that epoxy resin prices had fallen to extraordinary lows. The European producers had drastically cut their prices to defend their market share from a rising tide of Asian epoxy resin imports and by early autumn, there was very little difference in pricing between Northeast Asian exports and domestic European sources. But this meant sacrificing margins, which according to all suppliers had fallen to such low levels that they could only be sustained in the very short term. Buyers, however, found themselves in an incredibly strong position, able to drive a hard bargain and succeed in getting bids down as low as possible.
But then two interesting things started to happen at the end of 2016 that saw the balance of power noticeably shift from buyer to producer. First, availability of raw materials began to shorten and as result prices rose hard and fast, particularly BPA. Then, it became apparent that the Northeast Asian epoxy resin producers, unable to withstand the low-priced environment, began to curb their epoxy resin shipments to almost half of normal volumes, immediately tightening supply in all regions…
A subscription to our Epoxy Resins & Co-Reactants Chemical Business Focus can give you further insights like this on the state of the markets world-wide.
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Chemical Business Focus
Each month, subscribers receive a comprehensive look at current activity in the market, including pricing information for all of the main product areas in each of the key regions. In addition, subscribers have online access to 10 years historical prices to download as Excel files from our website, to Trade Tables and Charts and, on a quarterly basis, Plants & Projects listings which contain the latest information with regards to capacity developments in the Epoxy Resins & Co-Reactants industries.
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Our epoxy resin expert, Jennifer Hawkins, will be attending JEC World International Composites event in Paris on March 14-16. To arrange a meeting please contact info below:
Consultant – Unsaturated Polyester Resins & Epoxy Resins
Phone: +44 207 924 3955