2021 August 2nd UPR Resin Pricing Trends & Insights

Overview of UPR Resin Pricing & Market Fluctuations

The Unsaturated Polyester Resin (UPR) market has seen significant shifts in 2021, with a notable contrast between resin pricing stability and varying demand dynamics. While the resin raw material market has weakened, UPR pricing remains relatively stable. Key resins such as Orthophthalic general-purpose resin, quartz stone resin, and pultrusion resin exhibit unique trends influenced by the broader economic environment.

Key Factors Impacting UPR Resin Pricing

Several factors are currently driving changes in UPR resin pricing trends:

  • Low Downstream Demand: A prolonged dip in demand continues to impact the market recovery, influencing resin prices.
  • Growing Production Capacity: Anticipated increases in production raise concerns about potential resin price fluctuations.
  • Economic Challenges: The PMI index dropped to its lowest point since February 2020, signaling potential pressure on the UPR resin pricing landscape.
  • Pandemic Impact: Disruptions caused by the pandemic, including the Nanjing Lukou Airport outbreak, have added volatility to the market.

UPR Factories’ Outlook for August Orders

UPR factories report a challenging outlook for August orders, with expected volumes lower than in July. While the first half of the year saw strong sales and prices, profits have declined by over 60%, raising concerns about the long-term viability of current pricing strategies. These challenges are magnified by the economic downturn, affecting the overall resin pricing stability.

Products like Fiberglass Stair Railings, Fiberglass Checker Plate Grating, and other resin-dependent items are directly impacted by the fluctuations in resin pricing.

Supply Chain Concerns in UPR Resin Market

The upstream industry is currently prioritizing short-term profits, which risks the long-term stability of resin supply chains. Rapid increases in raw material costs have forced UPR factories to seek new suppliers, further complicating the situation. This issue is also felt by industries relying on products like Fiberglass Gas Covers, Fiberglass Drain Grates, and other resin-dependent solutions.

Opportunities in UPR Resin Production Capacity

In response to the challenges, the introduction of new production facilities presents an opportunity for UPR factories. Increased production capacity reduces dependency on traditional suppliers and allows factories to adapt more quickly to market fluctuations. This shift also benefits industries that rely on fiberglass products like Fiberglass Molded Gratings and Fiberglass Pultruded Bars, where supply chain innovation is paramount.

Despite delays in significant events, such as the Unsaturated Resin Development Forum, new developments indicate the potential for UPR resin pricing stabilization in the future.

Managing UPR Resin Price Fluctuations

The volatility of resin pricing continues to challenge downstream customers, especially those in export and engineering sectors. These industries often prefer fixed resin prices for procurement, but fluctuating raw material costs make this difficult to guarantee. Sectors such as Fiberglass Platforms and Fiberglass Deck Panels are particularly vulnerable to these price changes.

Collaborative Pricing Strategies in UPR Resin Market

To combat the challenges of price fluctuations, some UPR factories have adopted collaborative pricing strategies. By implementing binding contracts with price adjustment clauses tied to the Resin Price Index, these factories ensure predictability and minimize disputes. This approach mirrors the strategies used in the fiberglass industry, benefiting products like Fiberglass Grating Clips and Fiberglass Manhole Covers.

Future Outlook for UPR Resin & Fiberglass Solutions

Despite current challenges, opportunities for growth exist within the UPR resin market. Products like Offshore Fiberglass Phenolic Gratings and Fiberglass Louver Windows continue to offer innovative solutions for a variety of industries. With a focus on collaboration, efficiency, and capacity building, both the UPR resin market and related sectors are poised for future success.

Explore our comprehensive range of fiberglass solutions, including Fiberglass Sliding Windows, Fiberglass Fence Systems, and Fiberglass Awning Windows, to learn more about how our products can support your industry needs.