In 2025, the epoxy resin industry was in a critical period of transformation, characterized by both structural overcapacity and a shortage of high-end products. On the one hand, the overcapacity of general-purpose products intensified market competition, leading to low overall operating rates in the industry. On the other hand, driven by emerging industries such as new energy, electronic information, and high-end manufacturing, the demand for high-end specialty epoxy resins continued to grow, accelerating the industry's transformation towards high-end and environmentally friendly products.

Key events in the epoxy resin industry in 2025

April 30 - The U.S. International Trade Commission issued a negative final determination in its anti-dumping and countervailing duty investigation into epoxy resins imported from my country. The commission determined that the products in question would not cause material injury to the U.S. domestic industry. As a result, the U.S. Department of Commerce will not issue anti-dumping and countervailing duty orders on the Chinese products, clearing the way for Chinese epoxy resin exports to the U.S. market.

May 7th - Hongchang Electronics announced that its "Zhuhai Hongchang Phase II project with an annual production capacity of 140,000 tons of liquid epoxy resin" had officially commenced production. Following the commissioning of this project, the company's liquid epoxy resin production capacity had significantly increased, and unit costs had decreased by 15%, further strengthening its market competitiveness in the electronics and electrical industries.

July 28th - Sinochem International announced a restructuring plan, proposing to issue shares to acquire 100% equity of Nantong Xingchen. Nantong Xingchen's core business covers epoxy resins and engineering plastics, with a complete industrial chain layout. This acquisition will strengthen Sinochem International's competitiveness in the epoxy resin industrial chain, achieving synergistic integration of raw materials, products, and applications, and contributing to the localization of high-end materials.

August 1st - DIC Corporation announced the construction of a new epoxy resin production facility at its Chiba plant in Japan. This project, which has been certified under the Japanese Ministry of Economy, Trade and Industry's "Stable Supply Security Program" and will receive a subsidy of up to 3 billion yen, focuses on meeting the demand for high-performance epoxy resins in the semiconductor industry. The new facility will incorporate new processes to improve production efficiency and product quality.

Throughout the year - the structural overcapacity in the industry intensified, leading to low capacity utilization rates. In 2025, China's total epoxy resin production capacity exceeded 4 million tons, with a market size expected to surpass 150 billion yuan. However, the overall industry operating rate was only 51.44%, with the operating rate for solid resins falling below 40%; the East China region accounted for 52% of the national capacity, but its operating rate was as low as 70%, continuously squeezing the survival space for small and medium-sized manufacturers.

Throughout the year - newly added capacity was released in a concentrated manner, with cost-advantaged companies dominating the competition. In 2025, the industry saw 720,000 tons/year of new capacity, mainly concentrated in integrated bisphenol A projects. These projects will leverage their cost advantages to squeeze out smaller manufacturers. Guangdong and Shandong provinces were planning an additional 390,000 tons of capacity, further increasing regional concentration. It is expected that the industry's CR5 (concentration ratio of the top 5 companies) will reach 58% for the year.

Throughout the year - demand in the high-end market grew against the general trend. In the electronic information sector, the market size of electronic-grade epoxy resins in China exceeded 18 billion yuan; in the new energy sector, there was strong demand for specialty epoxy resins from wind power and new energy vehicles. The construction of the hydropower station project in the lower reaches of the Yarlung Zangbo River is expected to consume 300,000 to 500,000 tons of epoxy resin in the future.

December 23rd - Hongchang Electronics released its "Improving Quality, Increasing Efficiency, and Enhancing Returns" action plan, disclosing several capacity expansion plans. The company is currently constructing the "Zhuhai Hongchang Phase III 80,000-ton per year electronic-grade functional epoxy resin project" and the "Zhuhai Hongren functional high-end copper-clad laminate electronic materials project," which will further expand its high-end product capacity and improve its electronic industry chain layout.

Epoxy Resin Industry Development Forecast for 2026

1. Policy Level: Continued focus on high-end substitution and green transformation, with support for industrial chain collaboration - It is expected that relevant supporting policies under the "Three-Year Action Plan for the Innovative Development of the New Materials Industry (2024-2026)" will be further implemented by 2026, providing R&D subsidies and market promotion support for localization projects of key materials such as electronic-grade epoxy resins and high-end polyphenylene ethers.

2. Production Capacity Landscape: Concentration continues to increase, and structural overcapacity is gradually easing - It is expected that the growth rate of new capacity in the industry will slow down in 2026, with the total new capacity likely to be controlled within 500,000 tons, mainly concentrated in integrated projects of leading enterprises. As small and medium-sized high-cost production capacity gradually exits the market, the overall industry operating rate is expected to increase to around 60%, and the structural overcapacity problem will be somewhat alleviated. The East China region will maintain its position as the core production area, while the central and western regions, benefiting from policy support and supporting industrial chains, are expected to maintain a capacity growth rate of around 12%, becoming a new growth pole.

3. Export Market: Opportunities and Challenges Coexist, Diversification Becomes a Trend - Benefiting from the positive impact of the US anti-dumping and countervailing duty final rulings, epoxy resin exports to the US are expected to grow steadily. However, global trade protectionism still exists, and companies will accelerate their diversified export strategies, expanding into countries along the Belt and Road Initiative and emerging markets to reduce the risk of over-reliance on a single market.

Summary: In 2025, driven by policy guidance and market forces, the epoxy resin industry accelerated its transformation towards high-end and green development, with demand in high-end sectors becoming a crucial support for industry growth. In 2026, the industry will enter a critical stage of structural optimization, with high-end development, consolidation, and green practices becoming core development directions. The industry as a whole is expected to move towards a new stage of high-quality development.

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