November 2023 Sees Surge in VER Price in European and Asian Markets Amidst Rising Demand

Vinyl Ester Resin (VER) prices witnessed a surge in the European and Asian markets during the initial half of November 2023, owing to the increase in the demand from the downstream corrosion-resistant coating in the manufacturing of composites and in adhesive industries. Though the price of feedstock Epoxy Resin followed a downward trajectory in both regions, the cost of the product surged amid low inventories and supply disruptions.

During the first half of November, the European VER prices experienced an increment primarily due to raised demand in the domestic market. This surge in inquiries impacted the VER prices as it compelled suppliers to adjust their pricing with market conditions. Further, the feedstock Epoxy Resin prices declined as the demand has been sluggish. Nevertheless, the product's price surged as imported prices rose. The downstream sectors of VER are for producing Fiberglass Reinforced Plastics (FRP) composites used in the automotive and construction industries, which has increased demand. Insufficient inventories have further led to increased prices in the domestic market.

The Asian market has also experienced a similar upward price movement for Novolac-based VER prices in this timeframe. During November 2023, the VER industry in China experienced an upshift as prices appreciated, which can be attributed to the increase in the cost of imported material from the US and Europe. During this period, the domestic market has exhibited favorable consumer sentiments, with increased demand from the downstream adhesive and coating businesses. Furthermore, insufficient stock availability has prompted sellers to adjust their prices upward. Similarly, Indian VER prices also showed an increment as the demand from the coating and composites industry remained relatively firm in the domestic market, which has caused traders to hike the price of VER in India. However, the cost of feedstock Epoxy Resin has been on a declining trend in the region, but it has not had a substantial influence on the prices of VER  because demand for the product has been relatively firm, and the cost of imported material has been high. Further, supply disruptions in the Panama Canal, which have led to increased freight charges, have impacted the price trajectory of the product in the Asian market.

As per ChemAnalyst, the price of VER in both European and Asian markets is anticipated to surge further in November and December amid the expected increased costs of the imported material from the US due to supply disruptions in the Panama Canal. Further, the demand for the product from the downstream industry is expected to remain high in the near term.