Epoxy Resin Market Rally Constrained (20260911)

1. Today's Summary

① Today, the East China market price of raw material bisphenol A rose by RMB 300/t to RMB 10,950/t, with the cost side firming upward.

② Inquiries on the demand side remained small, essential-need orders, limiting the upward momentum of the epoxy resin market.

2. Spot Market Overview

Table 1 Domestic Epoxy Resin Price Summary (Unit: RMB/t)

Based on East China, today the net water ex-works price of liquid E-51 epoxy resin closed at RMB 15,200-15,500/t, up RMB 100/t from the previous day; in Huangshan, the cash-payment surrounding-area price of solid E-12 epoxy resin closed at RMB 14,000-14,400/t, flat versus the previous trading day, in line with morning market expectations. Raw material bisphenol A prices rose sharply, and epoxy resin plants continued to push up starting prices. Quoted prices were broadly raised, but downstream follow-up on high prices was weak, so actual transaction increases were limited and mostly small orders.

3. Production Dynamics

China's epoxy resin industry capacity utilization rate is around 50%. Today, the average daily cost of liquid epoxy resin in East China was RMB 15,799/t, and the average daily calculated gross profit was RMB -499/t. In actual operation, there remains a certain mismatch between the improvement in theoretical gross profit and the recovery in actual profit.

4. Price Forecast

Cost-side prices continued to rise. To restore industry profits, holders continued to push up starting prices, but downstream buying interest was cautious, inquiries were sparse, and the upward extent of actual transaction negotiation levels was limited. It is expected that cost support in the epoxy resin market will remain relatively strong, and epoxy resin prices will trend stable-to-firm. Continue to monitor raw material prices and downstream purchasing pace; cautious operation is recommended.

5. Related Products

Bisphenol A Market: Based on East China, today East China bisphenol A closed at RMB 10,950/t, within the range of RMB 10,900-11,000/t, up RMB 300/t from the previous trading day, in line with morning expectations. Today, the bisphenol A market moved higher. In the morning, major producers raised their list prices, and holders raised offers, with limited selling interest. However, as prices continued to rise, buying sentiment weakened, demand follow-up was insufficient, and actual transactions in the market were sparse.

Epichlorohydrin: Based on Jiangsu, today ECH prices closed at RMB 11,550/t, flat from the previous day, in line with morning expectations. Today, the ECH market mainly quoted firmly within a range. With notable cost support and no pressure on spot supply, producers still had a bullish sentiment, and most new orders were quoted at the high end. However, downstream buyers were cautious about high-priced raw materials, while low-priced cargoes were hard to find. Transactions were mainly for essential needs, and actual order releases were limited.

6. Data Calendar

Table 2 China Epoxy Resin Data Overview (Unit: 10,000 tonnes)