This week, the domestic epoxy resin market was mixed. During the week, the liquid resin market’s center of gravity was weak, and the solid resin market reported an increase. As of the closing of January 7, the mainstream price of liquid resin in the East China market is for reference at 20,500-21,500 yuan/ton in acceptance barrels. In terms of raw materials, the main raw material bisphenol A stopped falling and rebounded, while the other raw material epichlorohydrin fell again. In terms of supply and demand, the epoxy resin market has been operating stably during the week, and the operating rate has steadily increased. However, the current epoxy resin market has entered the off-season and demand has been sluggish.

In the beginning of 2021, the focus of the epoxy resin market has picked up. Thanks to the short stoppage of upstream raw material equipment and supply shortages, the current cost support has been strengthened, and the offer of resin manufacturers has been rising.

Raw noodles
Bisphenol A: This week, the bisphenol A market oscillated and rebounded. During the week, the bisphenol A market changed its downward trend and offers gradually increased. The raw material phenol runs weakly, the center of gravity of acetone moves up, and the cost side is generally supported. In terms of supply, the bisphenol A plant fluctuated more this week, and the operating level dropped. The overall operating rate was around 60%. Among them, Nantong Xingchen’s load dropped to 40%. Sinopec Mitsubishi’s plant was temporarily shut down, and the on-site supply was tight. In terms of demand, the main downstream PCs first declined and then rose, the transaction performance was acceptable, and epoxy resins were not following up. As of the close of January 7, the mainstream negotiated price of BPA in East China will be delivered at RMB 12,900-13,000/ton.

Epichlorohydrin: This week, epichlorohydrin is operating weakly. During the week, manufacturers’ offers lacked favorable support, and the epichlorohydrin market continued to decline. The raw materials propylene and glycerin are arranged in intervals, and the cost side changes little. On the supply side, this week’s epichlorohydrin plant load remained low, the industry operating rate was around 45%, Shandong Binhua plant restarted, and Ningbo Huanyang shut down for maintenance. In terms of demand, the downstream resin market is cold, and demand is difficult to improve. As of the close of January 7, the mainstream negotiated price of epichlorohydrin in East China was delivered at 11300-11400 yuan/ton.

Supply side
This week, the operating rate of the liquid resin plant was maintained at around 60%, and the on-site supply was abundant. Its China Capital Chemical Industry was still in a state of shutdown, and the start date was undetermined. It is difficult to increase the load of the solid resin plant, and the operating rate is around 40%. Among them, the Huangshan Jinfeng technical renovation stops, and the overall negotiation atmosphere is difficult to improve.

Demand side
At present, the resin market is still in the off-season in demand, the downstream inquiries are not enthusiasm, and the transactions are even rarer. The bearish sentiment of the industry is only increasing, and the operation is cautious, and the current situation is difficult to change.

Outlook forecast

In 2020, the resin market has spent a “magic” year. At the beginning of 2021, epoxy resin seems to be weak under the support of cost, but undercurrents are actually surging. The main factors affecting the current market are as follows:
On the raw material side, bisphenol A can be described as the main “contributor” to the resin market’s rise in this cycle. However, the positive impact of this round of equipment is limited. The other raw material epichlorohydrin shows a narrow downward trend, and the cost support is not optimistic; the supply side, the market In the case of relatively stable internal equipment operation, the resin spot supply is sufficient, and it is difficult to support it; the demand side, the price and no market situation is difficult to break, the downstream industries consume most of the inventory, and the demand level is still mainly negative. It is expected that the domestic epoxy resin market will maintain a fluctuating adjustment situation in the short term, and the follow-up still needs to pay attention to the dynamics of raw materials and supply and demand.