The global demand of epoxy resin for the composites industry grew by 2.5% in Q4 2021 as compared to Q3 2021, while it increased by 14% as compared to Q4 2020. The growth in Q4 2021 in the epoxy resin market is due to the recovery in economic conditions and increase in demand across the end use industries such as automotive, aerospace, wind, pipe, and PCB. Epoxy resin prices, on an average, declined by more than 7% in Q4 2021 as compared to Q3 2021. The sharp decline in the epoxy resin price was mainly affected by the decline the raw materials price such as bisphenol A and epichlorohydrin. The epoxy demand increased in Q4 2021 due to the demand of epoxy increase in various end use industries such as adhesives, paints and coatings, composites, and other applications, while global market continue face the supply chain disruption. In this section, we are covering the demand and price trends of epoxy in the composites industry only.
In Q1 2022, the global demand for epoxy is forecasted to increase by 2.3% from Q4 2021 while Epoxy price is forecasted to increase by 1.6% in Q1 2022. Uncertainty in recovery of global supply chain issues accompanied by increase in raw material prices will be major factors impacting price of epoxy resin. The figure below depicts the change in demand and price of epoxy over the past five quarters and one forecast quarter.
Source: Lucintel
Figure: Global Quarterly Change in Epoxy Resin Shipment and Price Trends
North America
The North American epoxy industry witnessed growth in Q4 2021 as compared to Q3 2021 and it is expected increase further in Q1 2022. Epoxy demand increased due to growth in demand from principal markets, including automotive, aerospace, wind energy, marine, pipe & tank, and electrical and electronic. The price of epoxy declined in Q4 2021 from Q3 2021 due to decline in raw materials price. It is expected that demand and supply imbalance will not be completely resolved and price will increase during Q1 2022 in the epoxy market.
Europe
The European epoxy resin market witnessed growth in Q4 2021 from Q3 2021 and this demand increase is expected to continue in Q1 2022 also. The epoxy price declined in last quarter of 2021 due constant decline in raw material price. It is expected that the global supply chain disruption will result in increased price of epoxy resin in Q1 2022.
APAC
Epoxy resin market in the Asia Pacific increased during Q4 2021 from Q3 2021. Furthermore the increase is expected to remain maintained in Q1 2022. The price of epoxy declined in Q4 2021 because of decline in raw materials price. 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. In Q1 2022, epoxy price is expected to increase due to logistic issues across the globe resulting in demand-supply gap.
