In 2009, the situation in China’s epoxy resin market was severe
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Recently, the domestic epoxy resin raw material market has remained at high levels. Some epoxy resin manufacturers have raised their prices due to cost pressures, but demand from downstream industries is weak, resulting in moderate market activity. Some people say that as the traditional peak season approaches, business activity downstream is expected to improve, but given the current economic situation, the outlook for the future remains uncertain. 2007 was a year of rapid growth for China’s epoxy resin industry, with production capacity increasing at an excessive pace. This created the risk of supply exceeding demand in the epoxy resin market in 2008, leading to a decline in market prices. Following the outbreak of the global financial crisis, export orders for epoxy resins declined, and domestic demand shrank. The epoxy resin market in 2009 will continue the trend seen in 2008, with an ongoing surplus of supply over demand. Although policies to boost domestic demand have been introduced, it will still take some time for demand in the transportation and construction sectors to increase. The adjustment to the export tax rebate rate for copper-clad laminates is indeed good news, but it only has significance for the long-term market outlook; its positive impact in the short term is not significant. Overall, the situation in the epoxy resin market is severe.
The demand for epoxy resins should still be high; it’s just a temporary situation at the moment
Chinese people tend to act in a herd-like manner; even in industries where profits can be made, once the market becomes saturated, it’s still very likely to result in losses. Just like carbon fiber and epoxy resin, projects are being carried out across the country. With the financial crisis, things are probably tough for everyone. That’s the drawback of capital markets. This post was last edited by zhouchu2001 on 2009-3-30 10:34.]
I think that although the overall market is poor, there are still quite a number of large-scale power projects being launched, so the demand for resins remains high!