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[Industry Focus]：Liquid epoxy resin market downturn, weak cost support, demand outlook bleak

Read： 518 Time：6months ago Source：环氧树脂交流与交易

1. market prices continue to fall, the bottom of the obvious signs

since March, the liquid epoxy Resin Market Price continued lower. According to data, on March 1, the price range of the liquid epoxy resin market in East China was 13000-13300 yuan/ton, but by March 14, the ex-factory price of clean water had dropped to 12500-13000 yuan/ton. At the same time, the market price in Shandong also showed a similar downward trend, from 12900-13000 yuan/ton to 12400-12600 yuan/ton. Although the market price has gradually approached the bottom in recent years, due to multiple factors, market confidence is still insufficient and the overall operating situation is sluggish.

From the perspective of trading volume, the trading volume of liquid epoxy resin also showed a downward trend due to the weak market demand. Market participants are generally cautious and have a strong wait-and-see mood, resulting in a reduction in overall trading activity in the market.

2. bisphenol A and epichlorohydrin market weak operation, insufficient cost support

as the main raw materials of liquid epoxy resin, the market performance of bisphenol A and epichlorohydrin is also poor. Bisphenol A market began to decline in a wide range in late February, and the overall weakness bottomed out in March. According to the data, the current market offer price in North China/Shandong is 8900-9050 yuan/ton, while that in East China is 9200-9300 yuan/ton. Compared with the level of close to 10000 yuan/ton at the end of February, the decline was nearly 10%.

Although the decline in the epichlorohydrin market is relatively small, the price center of gravity also continues to decline. As of March 14, the mainstream price in Jiangsu market has dropped to 8000 yuan/ton, and the mainstream price in Shandong market is also around 7850 yuan/ton. In terms of transactions, due to insufficient market demand, the turnover of bisphenol A and epichlorohydrin also showed a downward trend.

Decrease in the start-up rate of the 3. unit and reduction in the demand for dual raw materials

under the double pressure of no cost support and no demand pull, the device start-up rate of liquid epoxy resin production enterprises continues to decline. With the decline in the operating rate of the plant, the demand for dual raw materials is also decreasing. This further aggravates the dilemma of the upstream dual raw material market, and enterprises are faced with the choice of price reduction, load reduction or shutdown.

Specifically, due to the continued decline in the market price of liquid epoxy resin, the profit margins of manufacturers have been severely squeezed. In order to reduce costs, some companies have to choose to reduce the start-up rate or reduce production. This has led to a reduction in demand for bisphenol A and epichlorohydrin, further exacerbating the imbalance between supply and demand in the market.

4. downstream market cautious bottoming, trading environment deterioration

although the decline in resin prices seems to be good news for the downstream market, downstream companies are generally cautious in the context of the current deteriorating trading environment. Due to weak market demand, downstream companies are cautious about buying at the bottom. They prefer a steady, step-by-step strategy to deal with possible risks.

In addition, social hoarders lack interest in the market. With resin prices falling and bottoming out, they generally believe that now is not a good time to bottom out. Therefore, this year's resin to the problem has become particularly prominent.

The release of new 5. capacity intensifies market competition, and the industry outlook is not optimistic.

Several new production capacity will be released during the year, and more will follow. The release of new production capacity will further intensify market competition and make the industry's prospects even more unoptimistic. In the context of increasingly fierce market competition, enterprises need to pay more attention to improve product quality, reduce production costs, expand sales channels and other aspects of the work.

However, as problems such as insufficient market demand and overcapacity still exist, the release of new capacity may further depress market prices, making corporate profit margins more squeezed. Therefore, industry companies need to pay close attention to market dynamics and flexibly adjust production strategies to cope with possible risks and challenges.

6. short-term market outlook: weak adjustment will continue

in the short term, the liquid epoxy resin and dual raw material market will continue to adjust weakly. In the case of market supply and demand imbalance and weak cost support, it is difficult for prices to rebound substantially. Industry companies need to pay close attention to market dynamics and flexibly adjust production strategies to cope with possible risks and challenges.

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