In September, the market experienced a rapid upward trend, with prices soaring to the stage high point. After entering October, the market turned to a downward adjustment, presenting an overall pattern of “high-level decline and narrow plate oscillation”. Prices gradually declined from the high point, stabilized at a low level in the middle and late of the month, and rebounded slightly at the end of the month.
Looking back at the October market, the first one is the rational correction after the previous surge. In September, driven by the rise in raw materials such as bisphenol A and epichlorohydrin, as well as supply tightening due to some equipment maintenance, the price of epoxy resin quickly surged, and the bullish sentiment in the market was concentrated. Entering October, the early parking facilities resumed production one after another, the industry’s operating load rebounded, the market supply of goods became significantly loose, the supply-demand pattern changed, and high prices lacked sustained support.
The weakness on the demand side is the core factor that suppresses the market. Epoxy resin is mainly used in downstream industries such as coatings, electronic encapsulation, and composite materials. After the traditional “Golden September” peak season, terminal orders gradually weaken, and downstream enterprises hold onto essential procurement in multiple ways. They generally adopt a strategy of on-demand procurement and are unwilling to stock up at high prices. Their willingness to receive goods at high prices is weak, and the market trading atmosphere is light. The focus of transactions continues to shift downwards, forming a situation where cost support weakens and demand drags down prices.
In terms of raw materials, the rise of bisphenol A and epichlorohydrin has stagnated, prices have fluctuated and weakened, and the support for upstream costs has decreased, which has also weakened the factory’s confidence in raising prices. Although some companies have a willingness to stabilize prices due to losses, the follow-up of downstream orders is insufficient, and the effect of price adjustment is limited. Prices can only gradually fall back according to demand. By mid to late October, after the price retreated to a relatively low level, market panic subsided, and low-priced goods attracted a small amount of demand for replenishment. The market stopped falling and rebounded slightly at the end of the month.
Looking ahead to the future, there is a high probability that epoxy resin will maintain a narrow range of fluctuations in the short term, with limited room for significant increases or deep decreases. On the positive side, there is a possibility of temporary stabilization on the raw material side. Under the pressure of factory losses, the willingness to proactively lower prices is not strong. If downstream electronic and anti-corrosion coating orders recover in the future, it is expected to drive prices up slightly. Negative factors are also prominent. The traditional off-season for demand is gradually approaching, and overall demand at the terminal is difficult to increase significantly. Supply side production remains high, and abundant supply will continue to suppress the market.
Without strong stimuli such as a significant increase in raw material prices or concentrated shutdowns, E-51 epoxy resin will mainly fluctuate in intervals. It is recommended that traders and downstream factories focus on essential procurement, carefully stock up, and continuously track upstream raw material prices, equipment maintenance plans, as well as changes in orders for terminal industries such as coatings and electronics, in order to timely control the pace of the market.