2025 Epoxy Resins, Bisphenol A, and Epichlorohydrin Market Review

Europe: A Year Defined by Oversupply, Trade Shifts, and Persistent Weakness

The year opened with cautious optimism among European epoxy resin suppliers, who hoped to emerge from the prolonged period of weak pricing and chronic oversupply that had persisted since 2022. Sentiment briefly improved in February when the European Commission released preliminary findings from its anti-dumping investigation into epoxy resin imports from China, Taiwan, Thailand, and South Korea. Producers announced price increases in anticipation of tighter import restrictions; however, the market reacted uneasily. Buyers grew hesitant and avoided large-volume commitments with suppliers from regions potentially affected by duties.

By midyear, uncertainty increased following publication of the Commission's final determinations. Definitive anti-dumping duties were imposed on imports from China, Taiwan, and Thailand; however, the rate for South Korea remained at 0 percent. This outcome disappointed domestic European producers, who had hoped for a stronger level of protection. Instead, South Korean suppliers saw an uptick in inquiries due to their continued competitive advantage under duty-free status.

Market sentiment was further disrupted in June when Westlake Epoxy announced the permanent closure of its Pernis facility, including epoxy resins, bisphenol A, and epichlorohydrin units. In years of stronger demand, such an announcement would have triggered a scramble for supply. In 2025, however, the reaction was muted. Customers seeking replacement volumes found themselves courted by both domestic and offshore suppliers eager to secure 2026 business in what is widely expected to be another flat-demand year. Price competition intensified as a result, driving margins even lower.

Anti-dumping measures delivered only a partial impact. Total EU27 epoxy resin imports from January to September 2025 decreased to 125,274 tons, a 12.5 percent year-over-year decline. The steepest decline came from China, where imports decreased nearly 100 percent to 11,288 tons. Thailand saw a 70 percent drop to 3,331 tons. In contrast, imports from South Korea rose 26.3 percent to 57,092 tons. Despite overall imports dropping more than 20 percent and the shutdown of Westlake Pernis, epoxy resin prices in Europe continued to drift lower. A brief April price uplift reversed once buyers realized that Korean material would continue to flow freely, undermining the stabilizing effect that duties were meant to achieve. Prices have fallen more than 12 percent year to date.

India's implementation of five-year anti-dumping duties on epoxy resin imports will also reshape global trade flows. With India now effectively closed to most Northeast Asian exporters, Europe and the Middle East remain the most viable destinations, intensifying competitive pressure in both regions.

Bisphenol A: Ample Supply and Weak Downstream Demand

Europe's bisphenol A market remained well supplied throughout 2025, supported by steady inflows from Northeast Asia. Westlake's Pernis BPA line had been under force majeure since late 2024, following a turnaround that forced customers to diversify their supply sources early in the year. As a result, the permanent closure of Pernis had minimal practical impact, as alternative sourcing arrangements were already established.

Global oversupply persists, driven largely by ongoing capacity additions in China. With U.S. tariffs limiting access to the American market, Northeast Asian suppliers increasingly targeted Europe. However, structurally weak European demand—especially from polycarbonate, epoxy resin, construction, automotive, and wind energy end markets—pushed import prices down nearly 25 percent from earlier in the year. Market sentiment suggests little expected improvement heading into 2026, with no clear signs of a meaningful rebound in downstream consumption.

Epichlorohydrin: Permanent Closures but Limited Market Impact

In October 2025, Ineos announced that it would permanently shut down its Rheinberg epichlorohydrin and chlorine units following approval from the works council. As with Westlake's exit at Pernis, market reaction was minimal. Consumption remains low, and supply is widely viewed as more than adequate. These closures are expected to remain inconsequential through 2026 unless demand recovers meaningfully in 2027 or beyond.

Concerns over competitiveness have renewed calls for stronger European protection. Ineos has been especially vocal, warning that Europe risks “industrial suicide” without relief from high energy costs, limited tariff protection, and increasing volumes of high-emission imports.

Emerging EU initiatives may signal a shift in policy direction. The European Union is developing a Critical Chemical Alliance, and a broader strategic framework was unveiled on December 3 to secure access to critical raw materials and reduce reliance on foreign suppliers. The €3 billion program aims to expand mining, processing, and recycling capacity. New procurement structures, export controls on permanent magnets, and expanded recycling requirements are also under consideration. Although not currently directed at epoxy resins, these measures suggest the possibility of a more interventionist industrial policy in the coming years. If similar tools were eventually extended to petrochemicals, European buyers' reliance on Asian sourcing could become significantly less viable, thereby tightening domestic balances.

North America: Tariffs, Trade Frictions, and Muted Demand

In the United States, 2025 was shaped by a combination of anti-dumping actions, tariff reforms, and geopolitical trade adjustments. Epoxy resins were removed from the Annex II exemption list on September 8, 2025, exposing imports to reciprocal tariffs. HTS code 3907.30.00 now faces elevated duty rates depending on origin, and cargoes already in transit require renegotiation between suppliers and buyers to determine cost allocation.

Domestic producers responded quickly. Olin announced double-digit increases on September 10, followed by Westlake on September 17 with similar price hikes and an additional 15 percent tariff on epoxy resin imports from Europe. Producers argued these increases reflected higher costs of importing alternatives, despite sluggish demand and elevated inventories.

End-use markets remained weak. Construction failed to achieve seasonal recovery, automotive activity lost momentum after early-year restocking, and coatings consumption remained soft, except for defense-related applications. Market participants generally expect that structurally weak demand will limit the immediate impact of announced price increases; however, tariffs and duties are expected to gradually push buyers toward domestic suppliers. Asian producers report margins too thin to absorb tariff costs, reinforcing expectations that higher domestic pricing will eventually take hold.

Government shutdown–related delays mean September and October import data are not yet available. However, January–August figures show U.S. epoxy resin import volumes down 4.7 percent year over year. Imports from South Korea totaled 64,505 tons (down 4 percent), while Taiwan's shipments surged 222 percent to 7,135 tons. Thailand's imports rose from 220 tons to 1,234 tons.

Domestic producers report an increase in inquiries as tariffs erode the competitiveness of imported materials, although underlying demand remains subdued. Olin's and Westlake's fourth-quarter 2025 increases have seen partial traction, with broader acceptance expected once year-end inventories of Asian-origin supply are drawn down.

The U.S. has also imposed anti-dumping duties on epoxy resin imports, though rates for South Korea remain minimal. Olin and Westlake, through the U.S. Epoxy Resin Producers Ad Hoc Coalition, have filed a claim with the Court of International Trade, arguing that the Department of Commerce underestimated subsidy distortions in its countervailing duty determinations on Korean imports. Market participants remain skeptical that substantial rate increases will materialize, given South Korea's geopolitical importance and its strategic relationship with the United States.