Global Epoxy Resin Prices Hold Steady in November H2 Amid Weak Demand and Fluctuating Feedstock Prices

During the second half of November 2024, the global Epoxy Resin market exhibited a stable price trend, with minor fluctuations observed in certain regions. Factors such as weak downstream demand, fluctuating feedstock prices, and subdued economic activity influenced the market across key regions.

In Europe, Epoxy Resin prices remained steady at USD 4198/MT FD Hamburg during the week ending November 29, 2024. This trend was attributed to weak demand from downstream sectors, particularly the paint and coatings industries, coupled with declining auto sales. The KBA federal transport authority reported a 0.5% decline in Germany's vehicle sales in November compared to the previous month. New car sales also saw a sharp fall, primarily driven by a 22% plunge in battery-powered electric vehicle (EV) demand, with EVs comprising only 14% of the total market, a significant drop from the previous year.

Further, Eurostat data revealed that inflation in the Eurozone rose to 2.3% in November, up from 2.0% in October, signaling cautious sentiment among downstream industries. The combination of high inventory levels and strategic production management allowed manufacturers to keep Epoxy Resin prices stable despite reduced demand.

In the United States, Epoxy Resin prices also remained unchanged during the period. This was largely due to low domestic production costs and subdued downstream demand from the paints and coatings sectors. However, the construction sector's downturn persisted as a key concern, limiting broader market recovery.

Despite some improvement in auto sales, rising mortgage rates dampened housing market activity. Only 2.0% more homes were newly listed in November compared to the prior year, down from 4.9% in October. The median home price fell by 0.7% year-over-year, reflecting weak market sentiment. Feedstock trends influenced the production costs for Epoxy Resin: Bisphenol A prices fell by 6.66%, while Epichlorohydrin prices remained steady. This stability in feedstock costs, coupled with weak demand, maintained a tepid market environment for Epoxy Resin.

In the Asia-Pacific (APAC) region, Epoxy Resin prices followed a steady trend with marginal downward fluctuations, notably a 0.64% decline in the Chinese market. The low demand from downstream paints and coatings markets, compounded by sluggish activity in the construction sector, impacted domestic consumption.

China's National Bureau of Statistics (NBS) reported a decline in the construction PMI to 49.7 in November, down from 50.4 in October 2024. On the international front, preliminary anti-dumping measures imposed by the U.S. and other nations on Chinese Epoxy Resin and other chemicals signaled increasing trade protectionism. This, combined with China's production outpacing demand, exacerbated the oversupply issue, creating financial strain for exporters. High tariffs and revoked trade benefits further eroded the global price competitiveness of Chinese Epoxy Resin. Further, feedstock costs showed mixed trends, with Bisphenol A declining by 2.91% and Epichlorohydrin rising by 3.13%. However, these fluctuations had a minimal impact on overall production costs. The oversupplied market, coupled with high inventories and weak demand, maintained stagnant epoxy resin pricing in the APAC region. Limited supply-side adjustments and reduced plant loads further reinforced the subdued market outlook.