In 2025, the epoxy resin industry will be in a critical period of transformation characterized by both structural surplus and high-end shortage. On the one hand, the overcapacity of general-purpose products will intensify market competition, and the overall operating rate of the industry will hover at a low level; 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 continues to grow, accelerating the industry’s transformation towards high-end and green products.

1、 Key events in the epoxy resin industry in 2025
On April 30th, the US International Trade Commission made a negative final ruling on the double industry injury of epoxy resin imported from China. It is determined that the products involved in the case will not cause substantial damage to the domestic industry in the United States. The US Department of Commerce will not issue anti-dumping and countervailing duty orders on Chinese products involved in the case, clearing obstacles for China’s epoxy resin exports to the US market.
On May 7th, Hongchang Electronics announced that the “Zhuhai Phase II Annual Production of 140000 Tons of Liquid Epoxy Resin Project” has officially started production. After the project is put into operation, the company’s liquid epoxy resin production capacity has significantly increased, and the unit cost has decreased by 15%, further consolidating its market competitiveness in the electronic and electrical field.
On July 28th, Sinochem International released a restructuring plan, intending to issue shares to acquire 100% equity of Nantong. Nantong’s core business covers epoxy resin and engineering plastics, with a full industry chain layout. This acquisition will strengthen the competitiveness of Sinochem International’s epoxy resin industry chain, achieve collaborative integration of raw materials, products, and applications, and help promote the localization process of high-end materials.
On August 1st, DIC Corporation announced the construction of a new epoxy resin production facility at its Chiba factory in Japan. This project has been recognized by the Japanese Ministry of Economy, Trade and Industry’s “Stable Supply Guarantee Plan” and has a maximum subsidy of 3 billion yen. It focuses on meeting the demand for high-performance epoxy resin in the semiconductor industry and will introduce new processes to improve production efficiency and product quality.
Throughout the year, the structural overcapacity pattern in the industry intensified, and the utilization rate of production capacity remained low. By 2025, the total production capacity of epoxy resin in China is expected to exceed 4 million tons, and the market size is expected to exceed 150 billion yuan. However, the overall operating rate of the industry is only 51.44%, of which the operating rate of solid resin is less than 40%; The production capacity in East China accounts for 52% of the national total, with a low operating rate of 70%, and the survival space of small and medium-sized manufacturers continues to be squeezed.
Throughout the year – concentrated release of new production capacity, cost advantage enterprises dominate competition. By 2025, the industry will increase its production capacity by 720000 tons per year, mainly focused on integrated bisphenol A projects, squeezing small and medium-sized manufacturers with cost advantages; Guangdong, Shandong and other regions plan to add 390000 tons of production capacity, further increasing regional concentration of production capacity. It is expected that the industry CR5 for the whole year will reach 58%.
Throughout the year, demand in the high-end market grew against the trend. In the field of electronic information, the market size of China’s electronic grade epoxy resin has exceeded 18 billion yuan; In the field of new energy, wind power and new energy vehicles have a strong demand for special epoxy resin. It is estimated that the future construction of the the Yarlung Zangbo River downstream hydropower project will consume 300000 to 500000 tons of epoxy resin.

On December 23rd, Hongchang Electronics released its action plan of “improving quality, increasing efficiency, and emphasizing returns”, disclosing multiple production capacity layout plans. The company is building the “Zhuhai Hongchang Phase III Annual Production of 80000 Tons of Electronic Grade Functional Epoxy Resin Project” and the “Zhuhai Hongren Functional High end Copper Clad Coating Electronic Materials Project”, which will further expand high-end product production capacity and improve the layout of the electronic industry chain.
2、 Forecast for the Development of Epoxy Resin Industry in 2026
At the policy level, we will continue to focus on high-end substitution and green transformation, and support the synergy of the industrial chain. It is expected that the relevant supporting policies of the “Three Year Action Plan for Innovative Development of New Materials Industry (2024-2026)” will be further implemented in 2026, providing research and development subsidies and market promotion support for key material localization projects such as electronic grade epoxy resin and high-end polyphenylene ether.
2. Production capacity pattern: Concentration continues to increase, and structural overcapacity is gradually easing – it is expected that the growth rate of new production capacity in the industry will slow down in 2026, and the annual new production capacity may be controlled within 500000 tons, mainly concentrated in integrated projects of top enterprises. With the gradual withdrawal of small and medium high cost production capacity, the overall operating rate of the industry is expected to increase to around 60%, and the structural surplus contradiction will be somewhat alleviated. The East China region will continue to maintain its position as a core production area, while the central and western regions, with policy support and industrial chain matching, are expected to maintain a production capacity growth rate of around 12% and become new growth poles.
3. Export market: Opportunities and challenges coexist, diversified layout becomes a trend – benefiting from the positive impact of the US anti-dumping and countervailing measures, exports of epoxy resin to the US are expected to steadily increase. But at the same time, global trade protectionism still exists. Enterprises will speed up diversified export layout, expand countries along the “the Belt and Road” and emerging markets, and reduce the risk of dependence on a single market.
Summary: In 2025, under policy guidance and market drive, the epoxy resin industry will accelerate the transformation towards high-end and green products, and the demand in the high-end field will become an important support for the industry’s development. In 2026, the industry will enter a critical stage of structural optimization, with high-end, centralized, and green development becoming the core development directions. The industry as a whole is expected to move towards a new stage of high-quality development.