Epoxy Resin Prices Index, Trend, Chart, News, Demand & Forecast

Epoxy Resin Market Analysis – Q2 2025

Introduction

Epoxy resins are essential materials widely used across industries, including coatings, adhesives, composites, electronics, and construction. Their diverse applications and reliance on raw materials such as bisphenol-A and epichlorohydrin mean that fluctuations in global supply chains, feedstock prices, and demand patterns directly influence market dynamics. In Q2 2025, the global epoxy resin market witnessed varied price movements across different regions. While North America and APAC markets experienced price declines, Europe showed signs of recovery with rising prices in specific segments.

This article focuses on the epoxy resin price trends in North America, APAC, and Europe during the second quarter of 2025, exploring the underlying factors behind these shifts and providing insights into future expectations.

North America: Declining Prices Amid Soft Demand

Price Movement Overview

In North America, the epoxy resin spot price notably fell during Q2 2025. The most significant decline was observed in the U.S. market, where prices for the Semi-Solid grade (EEW 300–350) dropped by 7.1% quarter-over-quarter, settling at USD 3,784/MT DEL Texas in June. This marked a considerable softening compared to the previous quarter, indicating pressure from multiple market forces.

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Key Drivers Behind the Decline

1. Weak Industrial Demand

• Demand from sectors such as aerospace, automotive, and electronics, which traditionally absorb high epoxy resin volumes, showed signs of slowing. Global macroeconomic uncertainty, coupled with cautious procurement strategies, led to reduced purchase orders.

2. Feedstock Price Volatility

• Epoxy resin manufacturers depend heavily on raw materials like bisphenol-A and epichlorohydrin. In Q2 2025, the prices of these feedstocks fluctuated but did not rise enough to sustain higher resin prices. The relative stability of these inputs allowed producers to lower margins to remain competitive.

3. Inventory Build-Up

• Several distributors increased inventory levels in anticipation of higher prices earlier in the year. When the demand failed to meet expectations, inventories remained stocked, forcing sellers to lower prices to clear supply.

4. Regional Supply Gluts

• Production expansions at multiple sites contributed to oversupply. Several plants that underwent maintenance in Q1 2025 returned to full operation, further increasing availability and pressuring prices downward.

Market Outlook

The near-term outlook in North America remains cautious. Unless industrial demand revives, or feedstock prices surge, epoxy resin prices are likely to hover within a narrow range or decline further. However, with rising infrastructure investments and government stimulus plans, especially in renewable energy and aerospace sectors, demand could see a gradual recovery by late 2025.

APAC: Moderate Decline Led by Japan’s Market Softening

Price Movement Overview

In APAC, the price decline was less severe compared to North America but still noteworthy. The Epoxy Resin Solid grade (EEW 500–560) price in Japan fell by 1.8% quarter-over-quarter, closing at USD 3,020/MT FOB Osaka in June. This moderate decrease reflects region-specific factors influencing supply and demand dynamics.

Factors Contributing to Price Decline

1. Subdued Manufacturing Activity

• Japan’s manufacturing sector, especially electronics and precision engineering, saw a slowdown due to supply chain disruptions and lower export orders. Reduced demand for high-performance resin formulations like EEW 500–560 contributed to the price decline.

2. Energy Costs and Currency Fluctuations

• While energy prices remained relatively stable, fluctuations in the yen’s exchange rate impacted the cost competitiveness of imports and exports. Japanese producers faced pricing pressures when competing with resin suppliers from Southeast Asia and China.

3. Shift Toward Sustainable Materials

• The growing adoption of bio-based alternatives and environmentally friendly formulations diverted a portion of demand from conventional epoxy resins, especially in consumer-facing industries.

4. Balanced Supply

• Unlike North America, APAC’s supply-demand imbalance was less pronounced. Producers maintained adequate supply without aggressive price cuts, contributing to a modest decline rather than a sharp drop.

Japan’s Market-Specific Insights

Japan's market has traditionally favored higher-grade formulations with superior chemical and thermal resistance properties. However, emerging trends in electronics miniaturization and lightweight composites have changed resin requirements. Some manufacturers are holding back aggressive price reductions to avoid compromising on formulation quality, signaling potential stabilization in subsequent quarters.

Outlook for APAC

The APAC epoxy resin market is expected to recover gradually, supported by ongoing investments in automotive composites, renewable energy infrastructure, and electronics manufacturing. However, pricing volatility could persist in response to fluctuating export demand and shifting regulatory frameworks promoting sustainable materials.

Europe: Price Rebound Driven by Industrial Uptick

Price Movement Overview

Europe experienced a contrasting trend compared to North America and APAC, with prices rising in key segments. The epoxy resin spot price for Novolac-based formulations increased by 3.1% quarter-over-quarter, reaching USD 4,123/MT FD Hamburg in June. The German market was a significant contributor to this upward trend, driven by recovering industrial demand and tightening supply chains.

Reasons for the Price Increase

1. Improved Demand from Industrial Applications

• Germany’s chemical, automotive, and construction industries saw stronger post-pandemic recovery. Investments in infrastructure upgrades and the energy transition spurred demand for epoxy-based coatings, adhesives, and composite materials.

2. Supply Constraints

• Several European plants faced capacity constraints due to maintenance schedules and logistical bottlenecks. This limited availability, especially for specialized formulations like novolac-based resins, allowed suppliers to push prices upward.

3. Environmental Compliance Costs

• Compliance with stringent EU environmental regulations increased production costs, particularly for formulations requiring lower volatile organic compounds (VOCs). These cost pressures were passed on to buyers, supporting higher price levels.

4. Higher Shipping and Raw Material Costs

• Transportation challenges and increased freight rates added to overall supply chain costs. Combined with higher raw material prices for epichlorohydrin and specialty additives, producers justified price hikes while maintaining margins.

The German Market: A Leading Indicator

Germany’s market is often seen as a bellwether for Europe’s chemical industry. The growth in novolac-based resin prices indicates improved industrial throughput and higher investments in durable materials. German manufacturers are also adopting advanced composite technologies in automotive and aerospace sectors, further supporting demand.

Outlook for Europe

Europe’s epoxy resin market outlook remains bullish in the short term, particularly for high-performance formulations. Continued investments in green technologies, circular economy initiatives, and regulatory incentives for sustainable adhesives and coatings are likely to support stable demand and healthy pricing. However, supply chain disruptions and geopolitical uncertainties may pose risks to long-term growth.

Comparative Regional Analysis

Conclusions

The epoxy resin market in Q2 2025 displayed regionally diverse trends, shaped by a blend of supply dynamics, demand cycles, regulatory environments, and macroeconomic conditions.

• North America faced significant price declines due to soft demand and oversupply, with little support from rising feedstock prices.
• APAC, particularly Japan, experienced moderate decreases as demand weakened slightly but remained relatively balanced.
• Europe, led by Germany, saw price increases in specialized formulations driven by industrial resurgence and regulatory cost pressures.

Looking ahead, the market is poised for gradual normalization. Strategic investments in high-growth sectors like renewable energy, automotive composites, and advanced electronics could drive renewed demand, especially in Europe and parts of APAC. Meanwhile, North America’s market may stabilize with supportive policies and infrastructure-driven growth.

For stakeholders across the value chain—from raw material suppliers to manufacturers and end-use industries—understanding these regional dynamics will be critical to navigating uncertainties and capitalizing on emerging opportunities in the epoxy resin market through 2025 and beyond.

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