What is the trend of Epoxy resin in China this year?

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Huntsman raises the price of epoxy resin products: Huntsman announced that it will raise the price of epoxy resin products sold in North America from November 1, 2021: ARALDITER epoxy resin series products will increase by 0.50 USD/lb (about 6,600 yuan/ton); Other polyimides (PI) resins, cyanate ester resins, alkyl resins, polyamide curing agents and other materials have increased by 12%-21%.

 In sharp contrast with foreign markets, the domestic epoxy resin market is currently in a fast downward channel. In October, the price of liquid epoxy resin dropped by 5,000 yuan/ton; The profit margin of solid epoxy resin is smaller, and the decline is much smaller than that of liquid. The price of solid epoxy resin in October fell around RMB 2,000/ton. Before November, the price of epoxy resin dropped by more than 1,000 yuan every day. The latest reference price is 30,500 yuan/ton for East China Liquid and 25,000 yuan/ton for Huangshan Solid. At present, there are two main factors for the decline of epoxy resin price. First, the downstream demand of resin is sluggish; second, the price of raw materials (bisphenol A) has dropped rapidly, and the price of epoxy resin has lost its cost support. In September, epoxy chloropropane was the leading role in the epoxy resin industry chain. Affected by the "big diving" in the price of bisphenol A, the price of epoxy chloropropane was also loose. The price dropped by several hundred yuan every day, and the latest reference price was about 19,200 yuan/ton. In October, the price of bisphenol accelerated and declined, and bisphenol a once again became the main factor affecting the market of epoxy resin. The latest reference price of bisphenol A is about 16,000 yuan/ton. Judging from the price in recent 4 years, it is normal for the price of bisphenol A to be below 15,000 yuan/ton. At present, the price of bisphenol A is still higher than that in most historical periods. In this wave of the market, some people think that the price of bisphenol has not been seen to the end, and the price of liquid epoxy resin is close at hand, which may be hope for the struggling downstream. However, is the fact really so deductive?  

 

As a person with many years of experience, I don't think the price will continue to fall. Like the TGIC trend in China, price bounces around, but it will still keep in a high position, maybe it is time to purchase at a lower price. The deep-seated reason for the current decline is the lack of domestic demand, and the rise and fall of raw materials will only cause short-term fluctuations.

My reasons are as follows: First, with the pressure of energy consumption control and environmental protection, more and more old and small factories will be closed, and the total amount of epoxy resin will be reduced. Secondly, with the approach of winter and the implementation of air pollution prevention law, the production capacity of epoxy resin will be limited. Finally, rising oil prices, inflation, and rising electricity and energy prices will all increase the cost of epoxy resin. According to the current cost calculation, epoxy resin will not be lower than 30 yuan. It is expected to rebound after bottoming out.

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Mr.Eric  Marketing and developing manager
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