Local Volatility in the Epoxy Resin Market

1. Daily Summary

① The market price of raw material ECH in Jiangsu rose by 50 CNY/ton today to reach 11,200 CNY/ton, increasing cost-side pressure.

② Downstream demand remains limited to rigid needs. The mainstream epoxy resin market is consolidating, with minor increases observed in some regions.

2. Spot Market Overview

Table 1: Domestic Epoxy Resin Price Summary (Unit: CNY/ton)

Based on the East China region, the ex-factory net water price for liquid E-51 epoxy resin closed at 14,900–15,200 CNY/ton today, remaining flat compared to the previous period. In the Huangshan region, the spot cash price for solid E-12 epoxy resin closed at 14,400–14,800 CNY/ton, rising by 100 CNY/ton from the previous trading day, which aligned with morning market expectations. Raw material ECH prices saw a slight increase, elevating cost pressures for the epoxy resin market. While factory offers have risen slightly, downstream willingness to follow suit is limited. Consequently, the center of gravity for the liquid market has remained stable through consolidation, while solid resin prices have edged up modestly.

3. Production Dynamics

The capacity utilization rate of the domestic epoxy resin industry stands at approximately 51%. Today, the average daily cost for liquid epoxy resin in East China was 15,776 CNY/ton, resulting in an average daily calculated gross margin of -776 CNY/ton. From an operational perspective, there remains a discrepancy between theoretical margin improvements and actual profit recovery.

4. Price Forecast

Cost-side prices have risen slightly, giving epoxy resin producers an inclination to raise prices. However, insufficient acceptance from downstream buyers means market prices are currently stabilizing through consolidation. It is expected that costs will remain high, suggesting upward potential for epoxy resin prices. Continued attention should be paid to raw material prices and downstream procurement rhythms; cautious operation is recommended.

5. Related Products Status

Bisphenol A Market: Based on the East China region, bisphenol A prices closed at 11,200 CNY/ton today, within a range of 11,100–11,300 CNY/ton, remaining stable compared to the previous trading day, as expected in the morning. The bisphenol A market is currently stagnant. Producers face little inventory pressure and maintain stable quotes. Meanwhile, downstream inquiry activity is subdued, with consumption primarily focused on fulfilling contracts and using existing raw material inventories. Both buyers and sellers have limited room for maneuver, resulting in sparse transactional activity.

Epichlorohydrin (ECH): Based on the Jiangsu region, ECH prices closed at 11,200 CNY/ton today, rising by 50 CNY/ton compared to the previous period, aligning with morning expectations. ECH market prices continued their upward trend today. Currently, various production processes face significant cost pressures, leading to notable margin compression. Additionally, enterprises are primarily focused on delivering orders and face no inventory pressure, reducing their willingness to offer low prices. This has caused the negotiation center to continue trending upwards. Downstream buyers are inquiring opportunistically but remain cautious about high-priced raw materials, with transactions largely driven by rigid demand.

6. Data Calendar

Table 2: Domestic Epoxy Resin Data Overview (Unit: 10,000 tons)

Note:

1. ↓↑ indicates significant fluctuations, highlighting data dimensions with changes exceeding 3%.
2. ↗↘ indicates narrow fluctuations, highlighting data dimensions with changes within 0–3%.