European and Asian Vinyl Ester Resin Prices Plummet in August 2023 Amidst Decreasing Demand

Vinyl Ester Resin (VER) prices saw a depreciation in the European and Asian markets during August 2023 due to a decline in demand from downstream corrosion-resistant coating, composite manufacturing, and adhesive industries. The decrease in feedstock price for Epoxy Resin has further influenced the downward trajectory of the product's pricing. Additionally, the European economic conditions are impacting consumer buying sentiments, and with sufficient stock availability, sellers have reduced product costs.

In August 2023, Novolac-based VER prices experienced a decline of 3% primarily due to decreased demand in the domestic Spain market. This reduced demand had a significant impact on VER prices, leading suppliers to adjust their pricing according to market conditions. Additionally, the ease in feedstock Epoxy resin prices played a crucial role in reducing cost pressures on VER during this period, contributing to the downward trend. The downstream sectors that rely on VER for the production of Fiberglass Reinforced Plastics (FRP) composites, used in the automotive and construction industries, have faced challenging times due to the gloomy economic outlook in Europe. Furthermore, the presence of ample inventory for the material has pushed prices downward to avoid excessive inventories.

The Asian market has also experienced a similar downward price movement for Novolac-based VER, with India and China seeing a downshift of 2% and 3% respectively. In August 2023, the VER industry in China faced a downshift as prices depreciated, which can be attributed to the overall economic slowdown impacting the demand for the product. The domestic market exhibited unfavorable consumer sentiments, leading to reduced demand from downstream adhesive and coating businesses during this period. The weaker price of VER was further influenced by the downward trajectory of feedstock Epoxy Resin prices in China. Additionally, ample stock availability prompted sellers to adjust their prices downwards to prevent excessive inventory.

Similarly, Indian VER prices also showed a downshift due to relatively low demand from the coating and composites industry during the monsoon season. This led traders to reduce the price of VER in India. Although the cost of feedstock Epoxy Resin has been rising in the area, it has not had a substantial influence on the prices of VER. This is because the demand for the product has remained modest, and the production rate has stayed consistent, ensuring a stable supply in the domestic market.

According to ChemAnalyst, there is an anticipation of a price increase in VER in the upcoming months. This is expected due to the projected rise in the costs of feedstock Epoxy Resin in both the European and Asian markets. Additionally, with stabilizing economic conditions and the approaching festival season, there might be an improvement in demand within the Asian market, particularly in China and India.