Vinyl Ester Resin prices decreased in the European region due to lackluster demand for it in the global market. The month's regional demand for resin in the downstream industries was underwhelming, as the downstream production cuts lowered demand for Vinyl Ester Resins in the downstream industries.

There were several reasons that influenced the Asian Vinyl Ester Resin market. The electronics, coatings, and adhesives sectors, which utilize feedstock Epoxy Resin for several production processes, have found it to be of little interest. Also, a drop in freight expenses impacted the price of the Vinyl Ester Resin. Additionally, the price of Vinyl Ester Resin in China was negatively impacted by the weak performance of the upstream crude oil market. Lower pricing for the basic compounds used in its manufacture and a moderate demand from downstream businesses both impacted the Epoxy Resin market in Europe, similar to how they did in Asian markets.

Demand for Vinyl Ester Resins in Europe was weaker than anticipated in the first quarter, and the outbreak of war in Eastern Europe worsened matters. The cost-push from domestic producers has not been reflected in spot prices for the months of February and March.

We expect the current market situation to last until the end of April, after which we expect feedstock costs to decline and raw material supplies to soften. In the US and Europe, the demand for Vinyl Ester Resin typically rises in the second quarter. The unique geopolitical and economic quagmire in which the European economy is currently mired could delay the expansion of demand by three to four weeks.

However, ChemAnalyst anticipates a shift in the Vinyl Ester Resin market in the European region over the coming months. Vinyl Ester Resin prices are anticipated to witness a growth in the cost of raw materials and shipping rates in the upcoming weeks. Downstream businesses to place additional procurement orders for this product to manufacture end-products, and the market will expand by almost 3% by May 2023. Therefore, the forecast for the quarter ending in June indicates that the European Vinyl Ester Resin market may finally start to show signs of recovery by early to mid-May.