Chemical Industry Update: January 2025 - Surging Orders and Supply Challenges

In January 2025, the chemical industry is witnessing significant fluctuations, particularly in epoxy resin, sodium hydroxide, titanium dioxide, and bisphenol A markets. With high order volumes and tight supply chains, companies are adapting to the changing landscape.

Epoxy Resin: High Demand and Tight Supply

Recent reports indicate that epoxy resin factories are experiencing a surge in orders, primarily driven by pre-delivery demands. The current operating rate for liquid resins stands at 70-80%, while solid resins operate at 50-60%. Several leading manufacturers, including Baling Petrochemical, have temporarily ceased quoting new orders due to tight supply.

• Current Situation:
  • Liquid Resin: No new pricing available from key producers.
  • Solid Resin: New orders not quoted by major players.

As a result, securing supplies has become increasingly competitive, with some suppliers changing prices daily.

Sodium Hydroxide: Prices on the Rise

The sodium hydroxide market is experiencing a steady increase in prices as manufacturers prepare for the upcoming Spring Festival. Prices have surged by approximately 200-250 RMB/ton in Inner Mongolia in early January.

• Market Highlights:
  • Price increases of 50 RMB/ton noted weekly.
  • Supply constraints due to ongoing maintenance at major production facilities.

The demand for sodium hydroxide remains robust as companies prepare for the holiday season, contributing to a bullish trading atmosphere.

Titanium Dioxide: Production Cuts and Price Adjustments

The titanium dioxide sector is grappling with rising production costs due to a shortage of raw materials. With operating rates declining and some manufacturers ceasing production, the market is tightening.

• Current Trends:
  • Prices for titanium dioxide have seen increases of 100-200 RMB/ton in response to rising production costs.
  • The average price for rutile titanium dioxide is fluctuating between 14,400 - 16,500 RMB/ton, down from last year’s average of 15,700 RMB/ton.

Producers are focusing on price adjustments to mitigate losses, as some report losses of 500 RMB per ton produced.

Bisphenol A: Profitability Issues

The bisphenol A market is facing severe profitability challenges, with an average theoretical loss of 1,069 RMB/ton reported across the industry. The operating rate has dropped to around 60-70%, leading many manufacturers to reduce production.

• Key Points:
  • The highest theoretical loss occurred in late September, reaching 1,563 RMB/ton.
  • Supply-demand imbalances are exacerbated by ongoing expansions in production capacity.

PVC: Demand Decline and Production Cuts

The PVC market is experiencing a downturn due to weak downstream demand, leading to reduced operating rates. Manufacturers are holding back on new orders as they navigate the current landscape.

• Current Conditions:
  • Overall operating rate has decreased by 1% compared to the previous month.
  • Manufacturers like Ningbo Hanwha and Taiwan Plastics have suspended new quotes.

The chemical industry is navigating a complex environment characterized by high demand, tight supplies, and fluctuating prices. With the Spring Festival approaching, logistics and transportation are expected to face challenges, impacting downstream procurement strategies. Companies are urged to stay agile and responsive to market changes to capitalize on emerging opportunities.