Shell Sudden Production Disruption! Is This Chemical Industry Chain About to Face a Surge Impact?!

Shell announced recently that its propylene oxide/styrene monomer (POSM) plant in Moerdijk, Netherlands, has experienced a force majeure event due to technical issues. According to market reports, the plant, with an annual production capacity of 210,000 tons, has faced a production disruption. Currently, Shell has not made any public response to this incident.

At the time of the incident, the market was already facing pressures from tight supply and rising raw material costs.

Polyester resins and epoxy resins have issued price increase notices!

On February 19, an unexpected accident occurred at an epichlorohydrin facility in Shandong, drawing market attention. As a result, quotations for epichlorohydrin in the Shandong and Huangshan markets were suspended, with a strong sentiment of waiting and watching, anticipating further clarity on the situation.

After the Spring Festival, the price of epichlorohydrin continued to rise. On February 26, 2025, the market quote for epichlorohydrin was 10,300 yuan/ton, an increase of 1,350 yuan/ton from the first day after the festival, representing a 15.08% increase. However, due to the similarly robust rise in the price of glycerol, a key raw material, the cost pressure on enterprises remains significant.

On February 26, 2025, Allnex Resins (China) Co., Ltd. officially released a Price Increase Notice. The notice stated that, due to the sharp increase in prices of some key raw materials recently, in order to ensure continuous and stable supply and maintain good cooperative relationships, the company decided to raise the delivered price of powder coating polyester resin products by 500 yuan per ton (including tax) starting from March 1st.

This price increase by Allnex Resins is a microcosm of the rising costs in the powder coatings industry, with the main upstream raw materials for polyester resins, PTA (purified terephthalic acid) and neopentyl glycol, both experiencing significant price increases recently.

In fact, apart from polyester resins, the prices of other key raw materials for powder coatings, such as epoxy resins, TGIC (triglycidyl isocyanurate), and titanium dioxide, have also shown an upward trend.

Due to the rise in the price of epichlorohydrin, the prices of downstream products like epoxy resins and TGIC materials have also increased. The market quotation for solid epoxy resin on February 26 was 13,400 yuan per ton, an increase of 500 yuan per ton compared to the first day after the holiday, representing a 3.88% increase.

The EU imposes a 41% anti-dumping duty on Chinese epoxy resins

Misfortunes never come singly; on February 27, 2025, the European Commission officially announced the preliminary ruling notice of "The Case of Imposing Provisional Anti-Dumping Duties on Epoxy Resins Imported from the People's Republic of China, South Korea, Chinese Taipei, and Thailand."

The preliminary ruling announcement determines the provisional anti-dumping duty rates as follows:

Implementation of Provisional Anti-dumping Duties and Final Determination: Starting from the day after the announcement on February 27, 2025, provisional anti-dumping duties will be levied in the form of a deposit on the products involved when they are declared for import into the EU.

Regarding whether to retroactively impose duties from the preliminary determination, the European Commission did not make a decision in the preliminary ruling and will do so in the final determination. The final duty rate or method of collection may vary.

Market Impact: The EU's imposition of provisional anti-dumping duties on Chinese epoxy resins not only hinders industry technological progress and innovation but also disrupts global supply chains and intensifies international trade frictions.