In mid to early April, the epoxy resin market continued to be sluggish. Towards the end of the month, the epoxy resin market broke through and rose due to the impact of rising raw materials. At the end of the month, the mainstream negotiation price in East China was 14200-14500 yuan/ton, and the negotiation price in Mount Huangshan solid epoxy resin market was 13600-14000 yuan/ton. Last week, it increased by about 500 yuan/ton.

Dual raw material heating enhances cost support. The market for raw material bisphenol A has seen significant growth. Before the holiday, due to tight spot supply, the market quotation quickly exceeded 10000 yuan. At the end of the month, the negotiated price of bisphenol A in the market was 10050 yuan/ton, ranking among the top in the chemical industry’s price list. The holder does not have supply pressure and the profit is not high, but after the price rises to 10000 yuan, the downstream procurement pace slows down. As the holiday approaches, actual orders in the market mainly need to be followed up, with fewer large orders. However, the upward trend in the bisphenol a market supports downstream epoxy resins.

In late April, the raw material epichlorohydrin also saw a significant increase. On April 20th, the market negotiation price was 8825 yuan/ton, and at the end of the month, the market negotiation price was 8975 yuan/ton. Although pre holiday trading showed slight weakness, from a cost perspective, it still has a supportive effect on the downstream epoxy resin market.

From the market outlook, the epoxy resin market maintained a strong upward trend in early May. From a cost perspective, the main raw materials of epoxy resin, bisphenol A and epichlorohydrin, are still at a relatively high level in the short term, and there is still some support in terms of cost. From the perspective of supply and demand, the overall inventory pressure in the market is not significant, and factories and traders still have a sustained price mentality; In terms of demand, resin manufacturers have increased their orders before the holiday, and delivered after the holiday. The demand has remained stable. At the end of May, there was a downside risk in the market. The supply side Dongying and Bang’s 80000 ton/year liquid epoxy resin market continues to increase their burden, leading to an increase in investment market. Zhejiang Zhihe’s new 100000 ton/year epoxy resin plant has been put into trial operation, while Jiangsu Ruiheng’s 180000 ton/year plant has restarted. The supply has continued to increase, but it is difficult to significantly improve demand.
In summary, the domestic epoxy resin market may show a trend of first rising and then declining in May. The negotiated market price for liquid epoxy resin is 14000-14700 yuan/ton, while the negotiated market price for solid epoxy resin is 13600-14200 yuan/ton.