The global demand of epoxy resin for the composites industry grew by 2.8% in Q3 2021 as compared to Q2 2021, while it increased by 17% as compared to Q3 2020. The growth in Q3 2021 in the epoxy resin market is due to the recovery in economic conditions and increase in demand across principal consumers. Epoxy resin prices, on an average, grew by more than 5% in Q3 2021 as compared to Q2 2021. Global supply chain disruptions accompanied by an increase in raw material prices resulted in price increase of epoxy resin. Epoxy is used in adhesives, paints and coatings, composites, and other applications. In this section, we are covering the demand and price trends of epoxy in the composites industry only.
In Q4 2021, the global demand for epoxy is forecasted to increase by 3.5% from Q3 2021 while Epoxy price is forecasted to increase by 8.1% in Q4 2021. The figure below depicts the change in demand and price of epoxy over the past five quarters and one forecast quarter.
Figure 1: Global Quarterly Change in Epoxy Resin Shipment and Price Trends
The North American epoxy industry witnessed growth in Q3 2021 as compared to Q2 2021, with growth in demand from principal markets including wind energy, marine, pipe & tank, and electrical and electronic. Supply chain disruptions caused demand and supply imbalance and price increase during Q3 2021 in the epoxy market.
The European epoxy resin market witnessed growth in Q3 2021 from Q2 2021 and this demand increase is expected to continue in Q4 2021 also. Due to constant growth in demand for Bisphenol A and Epichlorohydrin along with the strong demand from the downstream paint and coating sector demand for epoxy will remain positively impacted. The freight charges across the Europe-US and Europe-Asia interoceanic trade-routes and critical shortage of shipping containers have resulted in increased price of epoxy resin.
Epoxy resin market in the Asia Pacific increased during Q3 2021 from Q2 2021. Furthermore the increase is expected to remain maintained in Q4 2021. Rebounding industrial as well as commercial activities and growth in demand from adhesives and coating segments has positive impact in epoxy demand. Other industries including automotive, electrical & electronics, and pipes & tanks also created opportunities in the epoxy resin market. Supply outage of LER (Liquid Epoxy Resin) across the globe created a demand-supply gap while driving price increases.Enable GingerCannot connect to Ginger Check your internet connection
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