The global demand for epoxy resins in the composites industry grew by 1.3% in Q2 2022 as compared to Q1 2022, while it increased by 8.4% as compared to Q2 2021. The growth in the epoxy resin market in Q2 2022 is mainly due to the increased demand in the paints & coating, adhesive composites, and other sectors. Epoxy resin prices increased by 3.4% in Q2 2022 as compared to Q1 2022. The epoxy resin price increased in response to higher raw material price, energy price, and logistics costs. The epoxy resin market has been dominated by supply and demand; the contradiction between supply and demand in the market is prominent. In this section, we are covering the demand and price trends of epoxy in the composites industry, only.
In Q3 2022, the global demand for epoxy is forecast to decrease by 4.1% from Q2 2022 due to the low demand from major end use sectors, such construction, automotive, and others. The epoxy resin price is forecast to decrease by 6.3% in Q3 2022 due to the steep fall in crude oil prices; improving supplies, softening demand, and feedstock trends are behind the price drop. The figure below depicts the change in demand and price of epoxy over the past five quarters. The data also provides forecast for Q3 of 2022 as shown below.
Source: Lucintel
Figure: Global Quarterly Change in Epoxy Resin Shipment and Price Trends
North America
The North American epoxy resin industry witnessed growth in Q2 2022 as compared to Q1 2022 due to growth in epoxy resin demand in end use markets, including paint & coating, automotive, and adhesive segments. In Q3 2022, the epoxy resin demand and price-- both are expected to decrease. The prices for epoxy resins declined due to weakened market demand from end markets, such as automotive, construction, and wind.
Europe
The European epoxy resin market witnessed increased demand in Q2 2022 from Q1 2022, driven by high demand in end use markets, such as construction. France registered 0.03 million units of privately owned housing starts in Q2 2022, which is 1.1% increases as compared to Q1 2022. Most of the demand is driven by the paint and coating industry, which is likely to put up strong quarterly growth. In Q3 2022, it is expected that the epoxy business will experience weaker demand in Q3 2022 due to decreased demand from end use industries, such as automotive, construction, and aerospace. It is expected that the epoxy resin price will decrease in Q32022 due to relaxation in the prices of epichlorohydrin, a critical feedstock in the production of epoxy resin.
APAC
The demand for epoxy resin in Asia Pacific increased during Q2 2022 from Q1 2022, driven by an increase in demand from end user industries, such as construction. Japan registered 0.07 million units of privately owned housing starts in Q2 2022, this is 8.18% increase as compared to Q1 2022. Furthermore, the demand is expected to decline in Q3 2022 due to low demand from end use industries, such as automotive and construction. In Q3 2022, epoxy price is expected to decrease due to the decrease in raw material cost and energy cost.
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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