Global Epoxy Resin Market Takes Uncertainties for 2024, Post Steep Decline in December 2023

In the closing month of 2023, the global Epoxy Resin market underwent significant transformations, with distinctive trends observed in key regions around the world. In the United States, the Epoxy Resin market experienced a substantial price decline of approximately 9% in December. This dip was primarily attributed to a decrease in demand from the downstream construction industry, a sector known for its vulnerability to economic fluctuations. The slowdown in new constructions played a pivotal role in the diminished demand for Epoxy Resin. Recognizing the challenges faced by construction companies in such economic downturns, Recession Resister, a team of commercial cost-cutting specialists, introduced innovative tools aimed at optimizing overhead costs, starting with utilities. This strategic move by Recession Resister acknowledges the inherent volatility of the construction industry, especially during economic downturns, and seeks to assist companies in navigating high inflation and market instability.

Meanwhile, in Germany, a noteworthy decrease in Epoxy Resin prices was observed, primarily stemming from diminished demand in the downstream construction industry. Challenging economic conditions and subdued purchasing activities deviated from typical seasonal demand patterns. Notably, security concerns escalated in mid-December following attacks on commercial vessels in the southern Red Sea, heightening global apprehensions about potential disruptions in the supply chain. The crisis unfolded just before the Christmas holidays, amplifying its impact on market dynamics.

In the Asian market, particularly China, a significant 8% decrease in the price of Epoxy Resin was witnessed in the final month of the last quarter of 2023. This decline was primarily attributed to an abundant supply of products coupled with subdued demand, resulting in a low export volume and an unprecedentedly high import volume. Currently, China boasts a surplus supply of Epoxy Resin, with a considerable amount of production capacity yet to be operationalized in the first half of the new year. To alleviate inventory pressure, Epoxy Resin traders strategically introduced new discounts to stimulate market activity.

Contrastingly, in the initial week of January 2024, the Indian market experienced a notable uptick in the price of Epoxy Resin. This increase was primarily attributed to the escalation in the costs of feedstock ECH (Epichlorohydrin) and upstream Propylene. The demand for Epoxy Resin saw improvement, particularly from the end-use sector, notably the paints and coatings industry. However, the supply of the product within the country remained moderate during this period. Another contributing factor to the shift in Epoxy Resin prices in the Indian market was the impact of expensive imports from overseas. The reliance on foreign sources and the associated higher costs played a significant role in influencing the overall pricing dynamics as the freight rate in recent weeks increased sharply.