August 31 news
Price Performance
In August, Chinese epoxy resins mainly operated with a narrow range of stable fluctuations, with very little volatility throughout the month.
- East China liquid E-51 mainstream: 14,000-14,500 CNY/ton (cash on delivery, ex-works)
- Huangshan solid E-12 mainstream: 13,300-13,600 RMB / ton (cash on delivery)
- The monthly average price increased from 14,125 CNY/ton at the beginning of the month to 14,250 CNY/ton at the end of the month, with a monthly price increase of only 0.88%. The fluctuation within the month was limited, and the main focus was on the negotiation space for actual orders. The listed prices did not change much.
2. Cost End: Raw Material Fluctuations, No Strong Drivers
Upstream bisphenol A and epichlorohydrin (ECH) showed a consolidating trend in August, with limited upward and downward fluctuations. Costs did not experience a one-sided significant increase or decrease, meaning there was neither strong upward momentum nor significant negative factors, forming a neutral support for epoxy in China.
3. Supply Side: Proactively Controlling Production to Avoid a Surge in Output Impact
Downstream shipments in August were relatively weak, and factory inventories are depleting slowly. As a result, companies are proactively reducing their production loads and controlling output.
- Liquid epoxy production has dropped from 61% to around 55%; solid epoxy production has fallen to about 44%. With more maintenance and production limits, there is an active reduction in supply to alleviate inventory pressure, which helps to offset the negative impact of the low-demand season, supporting the bottom price and preventing a sharp decline. Overall, it presents a state of "active supply reduction, without excessive output."
IV. Demand Side: Traditional Off-Season—Rigid Demand Procurement Dominates
The downstream sectors such as coatings, flooring, anti-corrosion, wind power composites, and copper-clad laminates are in the traditional off-season: terminals are mainly consuming their own inventories, with insufficient new order increments, cautious purchasing, buying on demand, and weak willingness to stockpile. Trading is light, making it difficult to drive price increases, resulting in a situation where "demand is weak and prices are hard to rise."
5. Summary of Market Structure
In August, epoxy resins in China experienced a typical situation of weak supply and demand with a balanced market: the off-season for demand led to a lack of upward momentum, while factories actively controlled production and cost support prevented further declines. The entire month was characterized by range-bound consolidation and negotiation on actual orders, lacking any significant trend.
VI. Short-Term Outlook (September)
In September, attention will be on the traditional "Golden September" recovery expectations in downstream sectors in China, fluctuations in raw materials such as bisphenol A and ECH, and the implementation of maintenance by enterprises; if demand only recovers moderately, the market is likely to continue to fluctuate within a narrow range, with a low probability of significant unilateral increases or decreases.
