UPR Market Trends: Resin Pricing & Demand Insights 2021

The Unsaturated Polyester Resin (UPR) market is experiencing significant shifts. While the resin raw material market shows signs of weakening, UPR pricing and demand remain stable. Key resins such as Orthophthalic general-purpose resin, quartz stone resin, and pultrusion resin reflect varying trends influenced by the broader market.

Key Factors Influencing the UPR Market

Several factors are driving changes in the polyester resin market this week:

  1. Low downstream demand: A prolonged dip in demand continues to affect recovery.
  2. Growing production capacity: Anticipated increases in production have raised market concerns.

Additionally, the PMI index recently dropped to its lowest level since February 2020, highlighting economic challenges. The pandemic has further disrupted production due to strict control measures after the Nanjing Lukou Airport outbreak.

Challenges for UPR Factories

UPR factories report a poor outlook for August orders. Expected order volumes are lower than in July. Although the first half of the year saw higher sales and prices, profits declined by over 60%. This decline has strained relationships between upstream suppliers and UPR producers.

Products like Fiberglass Stair Railings and Fiberglass Checker Plate Grating depend on stable resin prices. The ongoing volatility is putting pressure on manufacturers to adjust sourcing strategies.

Concerns Over Supply Chain Stability

The upstream industry has prioritized short-term profits, risking long-term supply chain health. The rapid increase in raw material costs has forced UPR factories to seek new suppliers. This is also evident in industries using Fiberglass Gas Covers, Fiberglass Drain Grates, and other resin-dependent products.

Opportunities with New Production Capacity

The introduction of new production facilities is a positive development for UPR factories. Increased capacity reduces dependency on traditional suppliers and accelerates production. Similar trends are visible in fiberglass products like Fiberglass Molded Gratings and Fiberglass Pultruded Bars, where innovation is reshaping supply chains.

Unfortunately, the pandemic has delayed key events, such as the Unsaturated Resin Development Forum. Originally planned for August 12, the forum’s new schedule remains unconfirmed.

Managing UPR Price Fluctuations

Downstream customers, especially those in export and engineering markets, prefer fixed prices for resin purchases. However, fluctuating raw material costs make stability difficult. This issue affects sectors like Fiberglass Platforms and Fiberglass Deck Panels, where consistency in supply is critical.

Collaborative Pricing Strategies

Some UPR factories have adopted collaborative pricing to ease conflicts. Binding contracts with price adjustment clauses tied to the Resin Price Index have proven effective. Both parties share price changes equally, ensuring predictability and minimizing disputes.

This strategy mirrors practices in the fiberglass industry, benefiting products such as Fiberglass Grating Clips and Fiberglass Manhole Covers.

Future Prospects for UPR and Fiberglass

Despite current challenges, opportunities exist for growth. Products like Offshore Fiberglass Phenolic Gratings and Fiberglass Louver Windows offer innovative solutions for various industries. Collaboration, efficiency, and capacity-building will help the UPR market and related sectors thrive.

For more information, explore our fiberglass solutions, including Fiberglass Sliding Windows, Fiberglass Fence Systems, and Fiberglass Awning Windows.