① The epoxy resin industry chain prices rose then fell this month, primarily driven by cost-side factors.
② The average monthly price of liquid E-51 in East China was 15,218 RMB/ton (ex-factory, pure water basis), up 6.17% month-on-month.
③ Downstream end-user demand remained limited to rigid requirements, with buyers generally adopting a strategy of replenishing stocks when prices dipped.
| Figure 1: Price Trend Chart of Major Domestic Epoxy Resin Markets (RMB/ton) |
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| Source: Chempricehub Information |
In September, the domestic epoxy resin market exhibited a trend of rising first and then falling, with market changes primarily dominated by raw material costs. On the raw material side, Bisphenol A (BPA) maintained high levels throughout the month, providing phased support to resin prices. Epichlorohydrin (ECH) prices declined mid-month but stabilized towards the end of the month. Fluctuations on the cost side were transmitted to the product market; however, weak demand follow-through for epoxy resin made it difficult to sustain high prices. As ECH prices fell mid-month, epoxy resin prices dropped simultaneously, with the decline exceeding that of raw materials. Even after ECH prices stabilized, epoxy resin continued its downward trend. There was no significant increase in orders from downstream industries, with end-users mainly purchasing based on rigid requirements. The market lacked motivation for proactive inventory restocking, resulting in weak trading sentiment. Under the dual squeeze of high costs and declining product selling prices, industry profitability deteriorated continuously, exacerbating corporate losses. Overall, this month's market was significantly influenced by cost drivers, but the lack of demand constrained price rebounds. During the phase of cost reduction, resin prices fell rapidly once support was lost, and profit margins were continuously compressed.
Table 1: Comparison of Regional Price Changes in the Domestic Market (Unit: RMB/ton)
| Region | Model | Current Period Avg. Price | Previous Period Avg. Price | Same Period Last Year | MoM Change | YoY Change |
|---|---|---|---|---|---|---|
| East China | E-51 | 15,218 | 14,333 | 14,733 | 6.17% | 3.29% |
| South China | E-51 | 15,413 | 14,540 | 14,763 | 6.00% | 4.40% |
| Huangshan | E-12 | 14,270 | 13,448 | 13,385 | 6.11% | 6.61% |
| Shandong | E-12 | 14,108 | 13,319 | 13,202 | 5.92% | 6.86% |
Source: Chempricehub Information
The average price of Bisphenol A (BPA) in East China during this period was 10,688 RMB/ton, up 14.35% month-on-month; the average price of Epichlorohydrin (ECH) in East China was 11,393 RMB/ton, up 1.17% month-on-month.
In September, domestic epoxy resin production and capacity utilization rates increased month-on-month. Domestic epoxy resin output reached 178,700 tons, an increase of 2.41% month-on-month and a decrease of 2.24% year-on-year. The capacity utilization rate was 46.96% (adjusted August capacity utilization rate was 47.62%, accounting for Hongchang Electronics' 10,000-ton solid epoxy resin line commencing operation in August). This represents a decrease of 0.66 percentage points month-on-month and a decrease of 6.49 percentage points year-on-year.
Supply-demand pressures in the domestic epoxy resin market are expected to further intensify in October, with the market likely to continue weakening. On the raw material side, prices of BPA and ECH are expected to decline slightly, leading to weakened cost support that will be insufficient to underpin product quotations. Supply-side pressure will increase significantly as previously shut-down units for maintenance resume operations in October, driving up industry operating rates. Coupled with the gradual commissioning of new capacity, spot supply in the market will increase, raising the risk of inventory accumulation. There are currently no signs of positive recovery on the demand side, and expectations for the traditional "Silver October" peak season are likely to fall short. Order increments in downstream industries remain limited, end-user operating rates stay low, and procurement is mostly small-scale purchases based on rigid needs.
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