The global epoxy resin market moved strongly higher during Q2 2026. The main reason behind this increase was the conflict involving the USA, Israel, and Iran, along with the strategic threat to the Strait of Hormuz. These developments created uncertainty across international petrochemical supply chains and made the movement of raw materials more difficult.
Crude oil prices increased sharply during the quarter, which had a direct effect on the cost of important epoxy resin feedstocks. Bisphenol A and epichlorohydrin are key inputs used in epoxy resin production, so changes in their costs can quickly influence manufacturing expenses. Higher feedstock costs therefore became an important source of upward pressure across major producing regions.
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The supply situation was also affected by higher freight costs, marine insurance premiums, and shipping disruptions. Export-oriented suppliers in Asia responded by maintaining stronger offers as production costs increased and regional supply became tighter. At the same time, demand remained healthy from several industries, including protective coatings, electrical laminates, composites, construction chemicals, automotive applications, and wind energy.
The Epoxy Resin price trend during Q2 2026 was therefore clearly bullish across the major markets covered in the source. Buyers continued to purchase material even at higher values because epoxy resin remains important for many industrial applications. Some companies also increased inventory coverage when they were concerned about further increases or possible supply delays.
By June, however, the market started showing early signs of stabilization. Geopolitical risk premiums gradually eased, freight conditions improved, and international logistics became somewhat more predictable. Even with this improvement, values remained considerably higher than their Q1 levels.
China Market
China recorded an increase of around 18% during Q2 2026 for liquid epoxy resin with an EEW range of 184–194 on an FOB Shanghai basis.
Higher crude oil costs were one of the major factors behind the increase. Rising costs for Bisphenol A and epichlorohydrin increased production expenses for manufacturers. The uncertainty surrounding the Strait of Hormuz also made international petrochemical trade more difficult to plan.
Chinese producers responded by maintaining stronger export offers. Demand remained healthy from protective coatings, electrical laminates, electronics, wind energy, and construction applications. Export interest from Southeast Asia and India also helped keep trading activity active.
Supply was relatively well managed during the quarter. Producers maintained disciplined operating rates, which prevented excessive spot availability even though port operations remained efficient. This balance between supply and demand allowed suppliers to maintain firm market conditions.
By June, Chinese epoxy resin values remained close to quarterly highs. Although geopolitical uncertainty had started to ease and freight conditions improved, the market did not experience a major decline. Higher production costs and steady demand continued to provide support.
India Market
India experienced a much stronger increase during Q2 2026. Liquid epoxy resin values on an Ex-Mumbai basis rose by approximately 38% compared with the previous quarter.
The Indian market was particularly sensitive to higher imported feedstock costs. Bisphenol A and epichlorohydrin became more expensive as crude oil prices increased and disruptions around the Strait of Hormuz affected international supply chains.
Higher global epoxy resin values also increased replacement costs for Indian buyers. Importers and domestic manufacturers had to account for these higher expenses when planning their procurement.
Despite the increase, demand remained strong. Protective coatings, adhesives, construction chemicals, electrical insulation, automotive products, and composites continued to require epoxy resin for their manufacturing processes.
This healthy downstream demand encouraged buyers to replenish inventories even when prices were moving higher. In normal market conditions, buyers may delay purchases when values rise quickly, but when the material is essential for production, companies still need to secure sufficient quantities.
Domestic availability changed from time to time as replacement costs increased through the supply chain. The combination of high feedstock costs and strong downstream demand kept the Indian market firm throughout most of Q2.
In June, values remained high despite the gradual improvement in geopolitical sentiment. The market did not immediately return to earlier levels because production and replacement costs were still elevated.
South Korea Market
South Korea recorded the largest increase among the markets covered, with liquid epoxy resin export values rising by approximately 55% during Q2 2026.
The sharp increase was strongly linked to higher crude oil costs and the resulting rise in Bisphenol A and epichlorohydrin expenses. The conflict involving the USA, Israel, and Iran created additional uncertainty around international petrochemical trade.
The situation surrounding the Strait of Hormuz also increased supply chain risks. For exporters, these risks were reflected in stronger offers as producers tried to account for higher production, transportation, and logistical expenses.
Demand from electronics laminates, semiconductors, protective coatings, automotive applications, and wind energy remained strong across Asia. This gave South Korean suppliers good support in export markets.
Producers also maintained controlled operating levels. Managing production carefully helped prevent excess material from entering the spot market at a time when costs were already high.
As a result, South Korean epoxy resin values remained particularly firm during Q2. Even in June, when geopolitical concerns began to ease, values stayed close to their quarterly peaks. Strong downstream demand and elevated feedstock costs continued to support the market.
Taiwan Market
Taiwan also recorded a significant increase during Q2 2026. Liquid epoxy resin export values rose by approximately 37% on an FOB Kaohsiung basis.
Higher crude oil prices increased the cost of the main feedstocks used in production. The conflict and uncertainty around the Strait of Hormuz also increased concerns about shipping costs and the availability of petrochemical materials.
Taiwanese producers therefore maintained strong export offers. Higher freight expenses added another layer of pressure, particularly for shipments moving to regional markets.
Demand remained healthy from electrical laminates, electronics, industrial coatings, composites, and construction applications. Regular purchasing from these sectors helped suppliers maintain good sales activity despite higher market values.
Producers kept operating rates relatively steady because export demand remained firm across Asia. This helped maintain a balanced supply situation while allowing suppliers to manage their production costs.
By June, Taiwanese epoxy resin values remained stable. Better shipping conditions and lower geopolitical tensions helped reduce some of the earlier pressure, but the market remained supported by higher manufacturing expenses and steady export demand.
Main Factors Affecting the Market
The Q2 2026 movement shows how several connected factors can influence the epoxy resin market at the same time. Crude oil was one of the most important influences because higher energy and feedstock costs increased the cost of producing Bisphenol A and epichlorohydrin.
Geopolitical developments were another major factor. Uncertainty around international shipping routes made it harder for companies to plan purchases and deliveries. Higher freight rates and marine insurance premiums increased the landed cost of imported material in several markets.
Demand provided another important source of support. Industries such as construction, automotive, electronics, wind energy, electrical products, and protective coatings continued consuming epoxy resin. This meant that buyers could not simply stop purchasing when values increased.
Supply management also played an important role. Asian producers controlled operating rates and managed availability carefully. This prevented excessive spot supply and helped maintain firm market conditions.
By June, some of the earlier pressure started to fade. Improved geopolitical conditions, better shipping availability, and easing freight costs helped stabilize the market. However, the impact of the earlier cost increases remained visible because values were still above Q1 levels.
Market Outlook
The second quarter of 2026 was a strong period for the epoxy resin market. China increased by around 18%, India by approximately 38%, South Korea by about 55%, and Taiwan by roughly 37%. These movements show the different levels of pressure experienced by each regional market.
South Korea recorded the strongest increase, supported by high feedstock expenses, firm export demand, and controlled supply. India also experienced strong growth because imported feedstock costs and downstream demand both remained elevated.
China and Taiwan recorded more moderate increases, but both markets still remained firm through June. Export demand and higher manufacturing expenses prevented a significant correction.
Looking ahead, the direction of the market will depend on crude oil, feedstock availability, freight conditions, and downstream consumption. If shipping conditions remain stable and geopolitical risks continue to ease, some cost pressure could gradually reduce.
However, demand from coatings, electrical products, construction, automotive, electronics, composites, and wind energy will remain important. If these sectors continue purchasing actively, suppliers may retain stronger negotiating positions.
Overall, Epoxy Resin prices ended Q2 2026 at elevated levels after a quarter of strong increases. June brought early signs of stabilization rather than a major reversal. For buyers and producers, monitoring feedstock costs, shipping conditions, inventories, and downstream demand will remain important as the market moves into the next quarter.
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