983700 tons! Epoxy resin production in the first half of the record high, the second half of the year can continue to grow?

Industry overview and overall performance

in the first half of 2025, China's epoxy resin industry showed strong growth momentum, with both production and capacity utilization increasing significantly year-on-year. As of the end of June, the total production capacity of domestic epoxy resin reached 3.5925 million tons/year, and the cumulative output in the first half of the year reached 983700 tons, a significant increase of 12.09. The average capacity utilization rate was 48.58 per cent, up 3.48 percentage points from the same period last year.

This growth was mainly due to the concentrated release of new capacity and strong demand support from the downstream wind power industry.

In-depth market analysis for the first half of 2025

capacity expansion breakthrough

in the first half of 2025, the production capacity of epoxy resin in South China will achieve an important breakthrough. Hongchang Electronics Phase II 140000 tons/year epoxy resin project was successfully put into production, becoming the only new large-scale production capacity project in this period. The commissioning of the project has increased the total production capacity base of the industry to 3.5925 million tons/year, laying a solid foundation for subsequent production growth.

Depth Analysis of Monthly Operation Characteristics

january-February: Spring Festival factors significantly affect during the Spring Festival, the operation of the industry was significantly affected by seasonality, and the loss of epoxy resin maintenance was large. Especially in February, solid epoxy resin devices in Anhui, Shandong and other places were basically in a state of suspension and vacation, and liquid epoxy resin devices only maintained low-load operation to maintain the basic balance of supply and demand.

March-May: Strong release of growth momentum this phase became the core driver of growth in the first half of the year. Hongchang Electronics Phase II 140000 tons/year new device officially put into trial production, while the downstream wind power industry has a clear "rush to load tide", double favorable factors to promote the overall level of epoxy resin device significantly improved, become the key driving force to promote the year-on-year growth of production.

June: Seasonal demand falls since June, the epoxy resin industry has gradually entered the off-season of traditional demand, the overall consumption level has declined, and the output has decreased accordingly. In spite of this, the whole first half of the year still maintained a significant growth trend over the same period last year.

Commencement levels and market drivers

due to the continuous release of new domestic production capacity to drive production growth, coupled with the strong support of the wind power industry in the first half of the year, the domestic liquid epoxy resin factory installation level remained relatively high. The continued maintenance of this high operating rate directly contributed to the significant year-on-year increase in China's epoxy resin production in the first half of 2025.

Capacity Expansion Planning and Supply Side Analysis

new capacity plan for the second half of the year

In the second half of 2025, the epoxy resin industry plans to add 230000 tons/year, and the total domestic epoxy resin production capacity will increase to 3.8225 million tons/year after production. The new production capacity is mainly concentrated in Shandong Province in East China, using the addition polymerization process.

Supply and demand balance risk assessment

with the continuous release of new production capacity, the imbalance between supply and demand in the domestic epoxy resin industry is becoming more and more serious. The concentration of new capacity may have an important impact on the market competition pattern, and it is necessary to pay close attention to the degree of matching between the actual delivery progress and the market digestion capacity.

Market Outlook and Forecast for the Second Half of the Year

yield and utilization rate prediction

according to market analysis, domestic epoxy resin production is expected to reach 1.0441 million tons in the second half of 2025, up 7.25 percent year-on-year and 6.14 percent month-on-month. Capacity utilization is expected to be 48.46 percent, down 1.57 percentage points year-on-year and 0.12 percentage points month-on-month.

Changes in market drivers

impact of new capacity release: qingdao Bay 150000 tons/year and Dongying Yi Ruizeng (Phase I) 80000 tons/year new devices will be fed in succession. Considering the uncertainty of the production time of the new device, its impact on the supply of epoxy resin may be more obvious in the fourth quarter.

Demand-side challenges: downstream wind power consumption is expected to gradually shrink, and demand growth in areas such as coatings and electronics is limited, which will further exacerbate the severity of the industry's supply and demand imbalance.

Operating level expectations

due to the increasing imbalance between supply and demand, the capacity utilization rate of epoxy resin manufacturers is expected to remain at a low level. At the same time, it is necessary to follow up the planned and unplanned maintenance of epoxy resin plants in real time, as well as the impact of profit changes on the load of the plant. These factors will slow down the year-on-year growth of production in the second half of the year compared with the first half.

Market risk and development recommendations

main risk factors

1. increased risk of overcapacity: the mismatch between the concentrated release of new capacity and demand growth may lead to a decline in the overall profitability of the industry.
2. Downstream Demand Fluctuations: cyclical changes in demand in the wind power industry have a significant impact on the epoxy resin market
3. increased regional competition: the new capacity is mainly concentrated in East China, which may increase competition in the region.

Development recommendations

1. optimize capacity layout: enterprises should reasonably plan the rhythm of production capacity according to market demand.
2. Expand application areas: actively develop new application markets and reduce dependence on a single downstream industry
3. raising the technical level: increasing Product Added Value and Market Competitiveness through Technological Innovation

summary

in 2025, China's epoxy resin industry is facing the severe challenge of increasing imbalance between supply and demand while its output is at a record high. Enterprises need to seek a balance between capacity expansion and market demand, and respond to industry changes through technological innovation and market expansion. Whether the industry can effectively deal with these challenges will determine its long-term sustainable development and profitability in the increasingly fierce market competition.