In the first half of June 2024, Vinyl Ester Resin (VER) exhibited varied trends across Asian and European markets. In China, the VER market experienced a surge in prices driven by strong demand from downstream sectors, particularly in the production of Fiberglass Reinforced Plastics (FRP) composites used in automotive and construction applications. This robust demand contributed to the upward price momentum. Meanwhile, the European market, particularly in Spain, remained stable during this period due to balanced supply-demand dynamics. However, global market dynamics were influenced by supply disturbances and increasing freight rates. Consequently, the price of VER Novalac-based FOB Barcelona (Spain) experienced a marginal rise of 0.3%, while Chinese VER Novalac-based CFR Qingdao saw a more significant increase of 1.3%.

The VER market in Spain experienced slight stability with a marginal increase, indicating a balanced supply and demand scenario during this timeframe. Market dynamics were influenced by a significant rise in ocean freight costs from Asia, adding to the pricing pressures. Further, an increase in feedstock Epoxy resin costs contributed to the modest uptick in VER prices. Despite these factors, the demand for VER remained lukewarm, especially in downstream sectors like construction and automotive composite manufacturing. The European chemical industry continued to struggle with weak global demand, exacerbated by slow growth in the US and a deceleration in China, alongside intensified competition from increasing Chinese chemical exports, impacting the VER market. Moreover, manufacturers faced cost pressures due to subdued domestic demand, restricting their ability to pass on increased production costs to their product prices. The construction sector, a pivotal economic driver, has been notably impacted by these challenges, overall impacting the market situation in the region.

In this period, the price of VER in China exhibited an upward trend influenced by firm demand and supply constraints. The demand for VER remained strong, particularly in the automotive sector, due to its excellent corrosion resistance and mechanical properties. Additionally, the surge in ocean freight rates contributed to the price rise as exporters hurried shipments in anticipation of the holiday season, driven by concerns over potential US tariff hikes and possible disruptions in the Red Sea. Furthermore, severe vessel congestion at the Singapore transshipment port since May caused significant delays in import shipments, exacerbating the supply shortage and further contributing to the price increase.

According to ChemAnalyst, the price of VER may ease in the upcoming few weeks in both Europe and Asia amid subdued demand. European countries have been grappling with weak demand from the downstream construction and automotive industries, which might impact VER demand in the region. Additionally, downstream inquiries for VER from the Asian market may witness a bearish trend due to the monsoon season, which is expected to impact demand from the construction sector amid struggling property sectors. Moreover, rising freight rates may affect the supply-demand dynamics, prompting traders to adjust prices accordingly.