From January to October of 2023, China's epoxy resin exports totaled 142,400 tonnes, up 39.39% from a year earlier.
In China, constantly expanding production capacity is further augmenting the epoxy resin oversupply. Against this backdrop, Chinese manufacturers are actively expanding into overseas markets, boosting exports, and increasing foreign trade.
China Epoxy Resin Exports 2022 vs 2023
Source: OilChem
From the perspective of exports, positive signals are captured. In the first ten months of 2023, China's epoxy resin exports amounted to 142,400 tonnes, marking a 39.39% year-on-year increase. Looking at each month, monthly exports also showed consistent growth compared to the same period last year.
There were two primary causes for such growth.
First, market experts say export is a viable option, particularly for non-integrated producers, at a time when China's epoxy resin industry's ongoing upgrade in scale and integration level has increased market competition and resulted in price wars.
Second, Chinese epoxy resins are superior in quality and cost performance, reducing demand for imported cargoes while increasing exports.
China Epoxy Resin Trade Partners
Source: OilChem
As seen above, the majority of China's epoxy resin exports went to Europe and Southeast Asia.
From January to October of 2023, the top three importers of China's epoxy resins were Russia, Italy, and Thailand, with Russia leading the pack with 23,300 tones, accounting for 18.4% of total exports. Italy came in second with 11,500 tonnes, representing 8.08% of total exports, and Thailand was third with a slightly smaller import volume but still making up 7.37% of the total.
Besides, Brazil and Turkey ranked fourth and fifth, with respective shares of 5.27% and 4.99%.
China's exports to Russia increased 94.29% compared to 2022. This was mostly due to geopolitical factors. The trading climate between Russia and Europe and the United States appears to be less favorable, making China a significant supplier of epoxy resins for Russia, who has thus become a major driver pushing China's epoxy resin export growth.
Outlook
China Epoxy Resin Supply and Demand Outlook
Source: OilChem
Turning back to the Chinese market, downstream consumption is growing at a far slower rate than upstream capacity, so Chinese epoxy resin producers will continue to go global and seek new markets. It is projected that by 2028, China's supply-demand gap for epoxy resins will expand to approximately 250,000 tonnes. As a result, imports will continue to fall while exports will continue to climb.
Written by Todd Zhu, todd@oilchem.net
Edited by Navy Liu, liuchuanjun@mysteel.com