- Global epoxy resin prices in Q1 2026 followed a mixed but mostly firmer path, with weak demand capping gains early in the quarter and the Iran war creating a stronger cost-led push in March.
- Feedstock pressure intensified as crude oil, gas, and upstream chemical costs rose after the Iran war and disruption around the Strait of Hormuz, sharply lifting production and freight expenses.
- Downstream demand remained uneven, with coatings, composites, construction, automotive components, and industrial applications showing selective buying rather than broad restocking.
Asia
In Asia, epoxy resin prices witnessed mixed trends in Q1 2026. At the beginning of the quarter, supply-side developments supported the market briefly as maintenance at some units tightened availability, but by March, the market weakened due to falling raw material support and sluggish demand. The Iran war then shifted the trend, as disruption around the Strait of Hormuz raised crude-linked costs, increased freight risk, and tightened supply visibility. This created upward pressure despite weak demand fundamentals. India followed a similar pattern, with early cautious buying and later cost-driven firmness due to disrupted Middle East trade flows and higher import-related costs.
Europe
In Europe, epoxy resin prices exhibited a volatile trend in Q1 2026. Sluggish demand coupled with adequate supply resulted in weak prices at the beginning, but the Iran war led to a sharp increase in the cost of production in the last month of the quarter. The Strait of Hormuz, through which 20% of the world's maritime movements of crude oil take place, became a crucial risk factor resulting in an increase in the cost of oil, gas, and transport, along with higher expectations among suppliers. Though buyers maintained caution, elevated import costs from Asia and increased costs for energy pushed prices in a bullish direction.
North America
In North America, epoxy resin prices fluctuated in Q1 2026, similar to the Chinese region. Initially, the epoxy resin prices were stable on account of balanced supply-demand conditions, while March was bullish owing to select restocking by buyers. The Iran war supported the market indirectly by increasing global cost pressure and tightening international supply sentiment, even though domestic supply remained stable.
Analyst Insight
According to Procurement Resource, in the near term, epoxy resin prices are expected to remain firm but volatile, with continued geopolitical uncertainty and Strait of Hormuz disruptions likely to sustain cost pressure while demand remains cautious.