In recent years, with the continuous release of new plant capacity, the problem of overcapacity in the
Epoxy Resin market has become more serious. Overall, the supply changes of the epoxy resin industry in the past 8 years can be divided into two stages:
The first stage is the slow growth of production capacity. From 2015 to 2019, the growth rate of epoxy resin production capacity was at a low level, during which, with the tightening of environmental protection work in China, the chemical industry was greatly affected, and the upstream raw materials of epoxy resin, epichlorohydrin, and downstream coatings industries were greatly impacted, resulting in the increase of idle capacity in the industry, the capacity utilization rate fell to about 60%, and the output growth was limited.
The second stage is the period of centralized expansion. In 2020-2021, epoxy resin production capacity is growing rapidly, and the increasing demand for downstream terminal electronics and electrical and composite materials is the main driving force for the growth of domestic epoxy resin production capacity. In addition, the domestic supply of epoxy resin in 2021 will also increase significantly, and the main reason for the increase in production is the release of domestic epoxy resin capacity and the improvement of capacity utilization in some months. In 2022, affected by the epidemic, the contraction of domestic consumption and the increase of inflationary pressure abroad, the downstream terminal industry has a large impact, and the demand is weak. In this context, the contradiction between domestic epoxy resin supply and demand has intensified, but in view of the market preference in previous years, the industry profits are significant, and the production of new domestic epoxy resin devices is still more. In 2023, the imbalance between supply and demand is more severe, and the industry profit has declined sharply, so the production of some new epoxy resin devices has been delayed.
