Epoxy resin: the end of the third quarter shocks, the profits of the manufacturers are acceptable

In the second half of 2017, the price of epoxy resin rose rapidly and sharply, and then peaked at the end of the year.
Downstream buying was negative.
Mid-to-late February 2018 was the traditional Chinese New Year holiday.
Some downstream and end customers gradually delisted and waited for vacation, and the market was buying.
Continued to weaken, manufacturers actively offered to make profit under the pressure of shipments, and the market spot price entered a rapid downward channel.
Subsequently, the raw materials of bisphenol A and epichlorohydrin were also dragged down by demand.
Resin producers obtained continuous profit margins, and the focus of trading Tumble endlessly.

At the end of March, the raw material bisphenol A stopped falling and rebounded, and the cost support improved.
After the destocking in the previous quarter, downstream buying orders were mostly in light or short positions.
As the cost of raw materials increased, buying orders began to enter the market to replenish goods.
, After the manufacturer’s inventory was partially digested, the offer was raised.
In early April, the price of dual raw materials rose, and downstream buying gas picked up periodically.
The spot price of epoxy resin started the first round of rapid rise during the year, but the upward trend only lasted for more than a month.
From the end of the second quarter to the first ten days of the third quarter is the traditional off-season.
Most downstream industries have reduced their operating load and entered a state of low demand.
With the support of raw material costs, manufacturers’ offers have stabilized.
status.

The market did not usher in a new round of replenishment after the off-season in August.
The downturn in demand dragged down the industry's mentality.
The dual raw materials went up and down, and cost support failed to bring benefits.
Manufacturers took the initiative to offer profits under the pressure of shipments.
, The center of gravity of spot trading has dropped accordingly.
In September, the raw material bisphenol A fluctuated at a high level.
Another raw material, epichlorohydrin, rose after bottoming out.
Some downstream industries are expected to enter the market for replenishment during the peak season of "Golden Nine, Silver and Ten".
In September, when it was less than half a month, most domestic Major resin factories have already received orders from the second half of September.
Inventories in some factories have been reduced, and manufacturers' offers have also been actively rising.
However, the stocking atmosphere before the National Day holiday was lower than the industry's expectations.
During the low-price negotiations, it was heard that spot prices in the market fell again. In 2018, the overall trend of China's epoxy resins declined.
The gross profit of liquid resin manufacturers fluctuates with the spot price, but most of the time it is above 1,000 yuan/ton.
As of mid-October 2018, the average gross profit of East China liquid epoxy resin E-51 is about 2,171 yuan.
/Ton, an average annual gross profit growth of 9.
1% compared to last year.
From the end of the third quarter to the beginning of the fourth quarter, the domestic epoxy resin prices fluctuated, the raw material bisphenol A showed a weak and fluctuating trend, and the other raw material epichlorohydrin showed a faint downward trend.
The downstream and terminal buying performance was not good, and the epoxy resin gross profit space Good, but with the increase in spot inventories, it is heard that the profit margin may be narrowed in the fourth quarter.

Source: Zhuo Chuang Chemical