The global epoxy resins market is expected to see feedstock challenges well balanced against healthy demand and tighter supply.
Costs for upstream chemicals cumene, phenol, acetone are expected to increase in the coming months, affecting epoxy resins prices through feedstock bisphenol A (BPA).
Feedstock epichlorohydrin (ECH) prices should remain stable, as chlorine supply remains balanced against demand.
However, higher feedstock costs should have some room to be passed along, as the diversity of applications of epoxy resins should keep demand stable to strong.
The electronics coatings and laminates, automotive coatings and oil field resins markets should be the largest end uses for epoxy resins. However, the weak construction and shipping markets will cut into demand from the all-purpose, municipal and marine coatings markets.
Upstream plant shutdowns and turnarounds in the US and Europe are expected to create some tightness in the epoxy resins markets, adding to momentum for higher prices in the coming months.