In recent years, China's liquid epoxy resin price, gross profit, capacity utilization rate "three drops"

In 2021, driven by the strong demand of downstream terminal wind power, electronics and other industries, the domestic liquid Epoxy Resin market price in April exceeded 40,000 yuan/ton level, a record high, since then, with the continuous expansion of production capacity, serious imbalance between supply and demand, the domestic liquid epoxy resin price focus continues to decline. As of March 20, 2024, the mainstream market in East China 12,500-12,900 yuan/ton of water purification factory, the center of gravity is low-end, down 18,800 yuan/ton from March 20, 2021, a drop of 59.68%. In the first quarter of 2024 (as of March 20), the average price of liquid epoxy resin was 12,994 yuan/ton, down 52.33%, 53.1% and 12.14% compared with the same period in 2021, 2022 and 2023, respectively. The fundamental reasons for the decline in the price of domestic liquid epoxy resin are: the contradiction between supply and demand continues to escalate, the future of new production capacity continues to release pressure, and the market is pessimistic.

The gross profit of the industry has further shrunk, and some stages have suffered losses

With the low market price of liquid epoxy resin, the gross profit space of the industry continues to decline, according to the data monitoring of Longzhong Information, the average gross profit of the liquid epoxy resin industry in the first quarter of 2024 (as of March 20) is -280 yuan/ton. Compared with the same period in 2021, 2022 and 2023, it fell 106.43%, 116.14% and 141.79%, respectively. The root cause of the declining profits of the liquid epoxy resin industry: the terminal demand is sluggish and difficult to shake, and the liquid epoxy resin market price continues to decline.

Capacity utilization in the liquid epoxy resin market fell to less than 50%

In the first quarter of 2024 (as of March 20), the overall capacity utilization rate of domestic liquid epoxy resin was 47.83%, down 0.77 percentage points from the fourth quarter of 2023, and down 11.7%, 4.47% and 0.6% compared with the same period in 2021, 2022 and 2023, respectively. Especially in early February this year, affected by the Spring Festival holiday, a number of domestic liquid resin equipment parking maintenance, the industry capacity utilization rate once fell below 20%, a record low. In the first quarter of 2024, Tongling Shanwei 75,000 tons (phase I) and Henan Sanmu 100,000 tons/year liquid epoxy resin units have been put into production, and the market capacity continues to increase, but because most of the years after the production enterprises are in a state of loss, and due to shipment pressure facing the expansion of storage, some factories take production reduction or parking operations, and planned and unplanned parking increases. The average capacity utilization rate of the liquid epoxy resin industry dropped to near 48% in the first quarter.