In Q1 2024, China's epoxy resin exports amounted to 56,700 tonnes, registering a 23.70% year-on-year increase. Notably, the amount exported in March hit a new record high of 23,600 tonnes.
The prosperity of China's epoxy resin export industry can be attributed to expanding production and competitive edges of their epoxy resin products in both quality and pricing.
China Q1 Epoxy Resin Export Volume from 2022 to 2024
Source: OilChem
Over the past three years, China's Q1 epoxy resin exports have been growing year by year. The cumulative export volumes were 24,100 tonnes in 2022, 45,800 tonnes in 2023, and 56,700 tonnes in 2024. The primary reason for this growth is the continuous expansion of epoxy resin production capacity in China, which has further weighed on the supply-demand imbalance, forcing domestic manufacturers to actively explore overseas markets. Leveraging their competitive pricing advantage, they have contributed to the steady rise in China's epoxy resin exports.
According to the latest customs data, in March, China's epoxy resin exports reached 23,632 tonnes, and the total export value was $47,128,263, with an average export price of $1,994.26/tonne. Notably, the March export volume grew by 34.09% year on year, but the monthly unit price remained lower than the levels in 2022 and 2023.
Major Importers of China's Epoxy Resin from 2022 to 2024
Source: OilChem
Major importers of China's epoxy resin are countries in Europe and Southeast Asia. Looking at the recent three-year Q1 results, the top five countries are Russia, Italy, Thailand, the Netherlands, and Turkey. Russia has become China's top epoxy resin export partner in recent years since the outbreak of the Russo-Ukrainian conflict and the imposing of strict economic sanctions by European and American countries against Russia. Consequently, many European and American companies gradually withdrew from the Russian market, resulting in a less optimistic trading environment for epoxy resin in Russia. Against this backdrop, Russia's imports of epoxy resin from China have expanded.
Specifically, in the first quarters of 2023 and 2024, China's epoxy resin exports to Russia totaled 9,426 tonnes and 6,284 tonnes, respectively, accounting for 20.56% and 11.08% of China's total export volume. Russia, as a highly promising epoxy resin consumer on a global scale, has increased its imports for epoxy resin following the Russo-Ukrainian conflict, making it China's largest epoxy resin export trading partner.
Major Provinces of China Exporting Epoxy Resin from 2022 to 2024
Source: OilChem
In China, China's epoxy resin exports mainly come from the southeastern coastal regions. The top five provinces are Jiangsu, Hubei, Anhui, Shandong, and Shanghai. Among them, Jiangsu Province is the primary driving force behind the significant increase in Q1 2024 epoxy resin exports. In that quarter, Jiangsu Province exported a total of 24,270 tonnes of epoxy resin, accounting for 42.79% of China's total exports. The main reason behind this surge is the concentrated distribution of epoxy resin capacity in this province, which accounts for 38.27% of the national total capacity. Leading enterprises in the region are actively exploiting foreign markets, hunting for foreign trade orders, and implementing multi-port and multi-form logistics transportation to enhance efficiency.
China's Main Trade Methods
Source: OilChem
In terms of export trade methods, China's epoxy resin export primarily relies on two modes: general trade and processing trade, which together account for over 99% of the total. In recent years, with the continuous growth of domestic epoxy resin capacity, the volume of epoxy resin exported through general trade has rapidly increased, with an average annual growth rate of 119.35%. However, the volume of epoxy resin exported through processing trade has experienced fluctuations, and in Q1 2024, it accounted for only 4.91% of the total. Moreover, it is expected that this trend of decline will continue.
Over the next five years, China's epoxy resin export volume is poised to break historical records. Against the backdrop of supply-demand imbalances, increasing exports and finding more foreign trade orders will be an alternative development path for epoxy resin manufacturers.
Written by Todd Zhu, todd@oilchem.net
Edited by Navy Liu, liuchuanjun@mysteel.com
