The global demand for epoxy resins for the composites industry grew by 1.6% in Q1 2022 as compared to Q4 2021, while it increased by 9% as compared to Q1 2021. The growth in the epoxy resin market in Q1 2022 is mainly due to the increased demand from wind, pipe, and paints & coating sector. Epoxy resin prices declined by 2.5% in Q1 2022 as compared to Q4 2021. The sharp decline in the epoxy resin price was mainly affected by the low market demand. In this section, we are covering the demand and price trends of epoxy in the composites industry only.
In Q2 2022, the global demand for epoxy is forecast to increase by 1.3% from Q1 2022 while epoxy price is forecast to increase by 2.2% in Q2 2022. Uncertainty in the recovery of global supply chain issues, increasing energy and logistical costs will be major factors impacting the price of epoxy resin. The figure below depicts the change in demand and price of epoxy over the past five quarters. Data also provides forecasts for Q2 of 2022 as below.
Figure: Global Quarterly Change in Epoxy Resin Shipment and Price Trends
The North American epoxy industry witnessed growth in Q1 2022 as compared to Q4 2021 and it is expected to increase further in Q2 2022. Epoxy demand increased due to growth in demand from end use markets, including wind energy, marine, pipe & tank, and construction. In Q2 2022, the epoxy resin price is expected to increase due to demand and supply imbalance.
The European epoxy resin market witnessed subdued demand in Q1 2022 from Q4 2021 and it is expected that the epoxy business will continue to experience weaker demand in Q2 2022 also. The epoxy demand declined in first quarter of 2022 due to the uncertainty following the Russian invasion of Ukraine. Olin, the world's second largest supplier of epoxy resins, has decided to suspend epoxy resin production due to the high cost of natural gas, weaker market demand, and high electrical power costs in Europe. It is expected that the epoxy resin price will be increase in Q2 2022, as global supply chain disruption will remain in Q2 2022.
The demand for epoxy resin in the Asia Pacific, increased during Q1 2022 from Q4 2021. Furthermore, the demand is expected to be maintained in Q2 2022. The growths in demand from adhesives and coating segments, and increased industrial as well as commercial activities have positive impact on epoxy demand. Other industries, including wind and pipes & tanks, also created opportunities in the epoxy resin market. In Q2 2022, epoxy price is expected to increase due to logistical issues across the globe resulting in demand-supply gap.
The price and demand analysis on above is published monthly for various regions. Lucintel analysts collect supply, demand and price data from various suppliers and consumers on a monthly basis and also analyzes news on supply and demand issues, production, and price trends. This allows Lucintel to publish unbiased assessments on price and demand movements to help you make confident business decisions on your negotiation or business issues.
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