Epoxy resin: cost driven market or demand determining market

In recent years, the scale of domestic epoxy resin production enterprises in China has not been largely released. With the policy impact of environmental inspection in 2017, the production of epoxy resin and its raw materials have been affected. This further amplifies the growth power of the domestic epoxy resin market.

Global recovery of epoxy resin Market

From the beginning of 1958, the domestic research on epoxy resin, and to speed quickly put into production in the country has been booming, in addition to the production of epichlorohydrin bisphenol A- type epoxy resin ordinary, also produced a new type epoxy resin of various types, in order to meet the national defense construction and national economic departments the urgent need.

In the past 2011-2013 years, the demand for epoxy resin in the US and Western Europe increased by 3.2% and 2.8% respectively. The 2%-3% growth will continue to be maintained in 2014-2018 years, and the global demand for epoxy resin will grow at a rate of around 4.5%, thanks to the rapid development of the Chinese market. In the domestic market, the annual compound growth rate of domestic epoxy resin consumption is over 10% in the past 2002-2013 years, which is much higher than the average growth rate of the global epoxy resin industry.

The price of epoxy resin rose to friends in November. In the last week of November, Asian market was affected by domestic market. Liquid epoxy resin was closed at 2500-2600 US dollars / ton FOB Northeast Asia.

The root of the market growth is the demand

Under the trend of the global epoxy resin market, the development of China has made this trend more obvious. In 2017, the policy of environmental protection has been restricted to a domestic epoxy resin industry. In the case of rapid increase in demand, the existing industrial scale of epoxy resin in China has been difficult to meet the demand of the market.

In 2017, the epoxy resin appeared to differentiate between liquid and solid market, and the price of liquid epoxy resin was gradually disparting from the price of solid. And with the development, the demand for liquid epoxy began to grow rapidly. From the current market of epoxy resin, it is also affected by environmental protection, the cost of raw materials is rising, and the liquid market has increased rapidly. While the solid market is also rising, the impact of downstream demand is obviously less than liquid.

On the recent forum of epoxy resin, we can see that "raw material prices are rising and pushing up the epoxy resin: shouting" Crazy "every day, this time we want to shout" no products ". The sound of this kind of voice is agreed by many people, epoxy resin materials are rising, everyone knows, but the real driving market is still the demand. (PS: in December 3rd, someone added a friend of the author to introduce a manufacturer of epoxy resin. Such a thing is not an example, nor is it exaggerated by the author.

Recent domestic market dynamics

In November China closed solid epoxy resin for 19200-19500 yuan / ton, some with high price, low price is more. The monthly average price increase is 16.25%; East China's liquid epoxy resin close is 26800-27500 yuan / ton, and the monthly average price is 19.77%. At the beginning of December, epoxy resin gains slowed, mainly early or digestion.

Get the message from a dealer in the morning of December 4th, 10 pm, a tank unit in Shandong Zibo Huantai County Maqiao town Shandong Haili chemical industry limited company fire, the fire fighting, the fire has been extinguished, the cause is under investigation. The effect of the supply of chlorine on the plant is affected, and the impact on the epoxy resin is waiting for feedback from the market.

Epoxide resin in the future

The development of China is obvious to the world, and with the development of many industries, the development of irrigation, epoxy resin is an example. With the gradual completion of the domestic epoxy resin projects, the production pattern of epoxy resin will be further improved, and the market will eventually return to reason.

                                                                                                                                                       By Emily