Epichlorohydrin cost push lifts epoxy resin prices slightly as weak demand caps gains

I. Key Points

1. Geopolitical Tensions and Crude Oil: The U.S.-Iran situation has not escalated ahead of the U.S. midterm elections, easing supply risk concerns and causing international crude oil prices to fall. NYMEX WTI crude oil futures (December contract) closed at $96.09/bbl, down $0.37/bbl (-0.38% WoW); ICE Brent crude oil futures (January contract) closed at $103.60/bbl, down $1.17/bbl (-1.12% WoW).
2. Raw Material Costs: The price of Epichlorohydrin (ECH), a key raw material, has risen, leading to an overall increase in production costs for epoxy resins.
3. Demand Side: New order inflows remain limited, constraining the upward movement of epoxy resin market prices.

Core Logic: Rising raw material costs have pushed up the overall cost structure for epoxy resins. While downstream industries are maintaining essential purchasing, producers are holding firm on prices to pass on costs. However, insufficient actual transaction volume limits significant price increases.

II. Price Table

Notes:

1. Prices listed in the table are in Chinese Yuan (CNY), unit: CNY/ton.
2. All CNY prices include VAT.
3. The two periods refer to spot prices from the two previous working days prior to this week.
4. "Change" indicates the Week-on-Week (WoW) fluctuation.
   Data Source: Chempricehub Information

III. Market Outlook

With raw material prices rising and cost pressures remaining high, epoxy resin prices have been adjusted upward due to cost support. However, downstream demand follow-through is limited, hindering effective price transmission and resulting in only modest gains in actual transaction weights. It is expected that raw materials will remain firm. Under conditions of high production costs and weak demand, further price hikes in the epoxy resin market may face resistance. Market prices are predicted to stabilize, leading to a stalemate. Cautious operations are recommended.