The global Vinyl Ester Resin (VER) market experienced varied trends in first half of January 2025. Prices remained stable in China and Taiwan, while India saw a price increase due to higher demand from the downstream industries. In Europe, particularly Spain, prices surged, driven by tight supply, and rising production costs. These regional differences reflect the significant impact of downstream industries like construction and automotive, which continue to influence demand fluctuations. Market dynamics are also shaped by feedstock price changes and supply chain challenges, with varying recovery rates across different regions.

In Asia, the Chinese VER market remained stable as seasonal factors, particularly the Lunar New Year holidays, reduced downstream activity. A decline in freight rates, as evidenced by Drewry’s Intra-Asia Container Index (IACI) dropping 6%, further impacted prices, maintaining stability in regional markets. In contrast, the Indian VER market saw a notable price surge at the beginning of the month. This increase was driven by heightened regional demand, signaling an active recovery in the construction sector and ongoing automotive production needs. Meanwhile, easing epoxy resin prices, a key feedstock for VER contributed to stabilizing input costs, softening potential price hikes.

Meanwhile, in Europe, the VER market saw an upward trend during this period, with the VER Novolac-based FOB Barcelona (Spain) price rising by 1%. This increase was attributed to tight supply conditions and elevated production costs. The rise in feedstock epoxy resin prices, coupled with the recovery in post-holiday demand, intensified cost pressures on manufacturers, impacting VER costs. Although cautious buying behavior remained, limited product availability further contributed to the firming of prices in the region. These factors combined to create a challenging market environment, with manufacturers facing higher expenses and ongoing supply constraints.

Geopolitical factors and global economic uncertainties also played roles in shaping the VER market dynamics. Trade policies and shipping disruptions in key export and import routes further complicated market stability. The cautious economic sentiment in Europe, exacerbated by rising energy costs, has driven manufacturers to carefully manage supply chain inefficiencies, while end-users balance procurement strategies with market uncertainties.

According to ChemAnalyst, the VER market is expected to rebound in Asia after the Lunar New Year holidays, with an increase in market activities anticipated in February. However, the European market is likely to continue facing challenges due to the ongoing tough market conditions. Additionally, easing freight rates could influence prices in both regions, potentially impacting the cost of commodities, including VER. The interplay of these factors suggests that while Asia may see a recovery, Europe could struggle with continued pressure on pricing and supply dynamics.