Market evolution: Epoxy resins (CN 390730) — 2015–2025

Introduction

This report analyzes the trade dynamics of epoxide resins in primary forms (CN 390730) for the European Union over the 2015-2025 period. The data reveals a significant transformation in the EU's trade position, characterized by a declining surplus, shifting partnerships, and evolving domestic production trends. These changes reflect broader industrial and geopolitical currents, impacting the EU's role in the global epoxy resin market. For a complete data overview, refer to the Scope & Definitions.

1. From Net Exporter to Balanced Player: The Erosion of the EU's Trade Surplus

The EU's trade in epoxide resins underwent a fundamental shift between 2015 and 2025, moving from a position of strong net export to a near-balanced trade flow. This trend is driven by diverging trajectories in export and import values, alongside a dramatic rise in unit prices.

1.1. The Collapse of the Positive Trade Balance

The EU's trade balance for epoxy resins deteriorated significantly over the decade. It fell from a surplus of €264.9 million in 2015 to just €92.2 million in 2025, a decline of 65.2%. The balance was most pronounced in the intermediate years, peaking at €345.8 million. This erosion indicates that import growth, while not massive in volume, was more robust in value terms than export performance.

1.2. Divergent Paths in Export and Import Flows

The core of the balance shift lies in how exports and imports evolved. EU exports in value decreased by 8.4% (from €734.3m to €672.3m), but this masks a severe 33.1% drop in exported quantity (from 227,306 tonnes to 152,002 tonnes). This was offset by a 36.8% increase in export unit price (from €3,230/t to €4,420/t). Conversely, imports grew in value by 23.6% (from €469.4m to €580.1m) while their volume actually contracted slightly by 4.4% (from 154,129 to 147,318 tonnes), driven by a 29.3% rise in import unit prices. The data suggests a market where higher prices became the dominant feature for both traded flows.

Source: General Overview

2. Shifting Alliances: The Reconfiguration of Major Trading Partners

The geographic composition of the EU's trade underwent notable realignment, with key partners experiencing vastly different fortunes. This reconfiguration highlights changing competitive advantages and the impact of geopolitical events.

2.1. Import Origins: Korea's Ascent and the Stability of Traditional Partners

Among the top import partners, the Republic of Korea stood out with a massive 117.3% value increase, growing from €76.0 million to €165.2 million and becoming the leading supplier by value in 2025. Switzerland remained the second-largest supplier with a more modest 8.4% growth. The United Kingdom, a traditional partner, saw a 29.1% decline in import value following its departure from the EU Single Market. The volatility of import flows varied greatly by origin; China exhibited the highest coefficient of variation (CV=1.07), indicating unstable sourcing, while Türkiye (CV=0.15) and Japan (CV=0.15) were more stable.

2.2. Export Destinations: The Russian Collapse and American Growth

The most dramatic shift in EU export destinations was the near-total collapse of trade with Russia, which plummeted by 92.6% from €53.5 million to €4.0 million, a direct consequence of international sanctions following the 2022 invasion of Ukraine. In contrast, exports to the United States surged by 63.8% to €107.4 million. Traditional markets like China (-26.8%) and the United Kingdom (-23.1%) saw significant declines. The export concentration, measured by the Herfindahl-Hirschman Index (HHI), decreased from 985 to 901, indicating a slight diversification away from top partners.

Detailed partner data can be explored via by-country partners.

3. Industrial Reconfiguration: Domestic Production Decline and Supply Chain Vulnerability

Underlying the trade shifts are significant changes in EU domestic production and a evolving vulnerability profile. The bloc's industrial base for this key material has contracted, while its supply chain exposure has become more concentrated.

3.1. A Weaker Industrial Base with Higher-Value Output

EU production data (in kilograms) shows a 21.8% decline in volume from 2015 to 2025. However, production value increased by 38.2%, rising from €1.30 billion to €1.80 billion. This mirrors the trade data: the EU is producing and exporting fewer tonnes of epoxy resin but at significantly higher value-added, suggesting a potential shift towards more specialized or higher-quality product segments. Germany remains the undisputed production and export leader, holding nearly half of the EU's production share and a high revealed comparative advantage (RCA).

3.2. Increased Vulnerability through Supply Chain Shocks

The data reveals episodes of significant supply chain stress. In 2021, major price shocks were detected for imports from key Asian partners. Korea, Taiwan, and India all experienced abnormal price shifts of 74-79%, contributing to a spike in the overall import price index. These shocks highlight the EU's vulnerability to disruptions in global chemical supply chains. This vulnerability is contextualized by the net import reliance indicator, which, while showing the EU remains a net exporter, saw its reliance ratio worsen by 51.4%.

Conclusion

Over the 2015-2025 decade, the EU's epoxide resin market transformed from a position of clear trade surplus towards a more balanced, price-driven, and geographically reconfigured state. The core trends are a severe decline in traded volumes accompanied by steep price increases, a collapse in trade with Russia, and a significant rise in sourcing from Korea. Domestically, the industry is producing less by volume but more by value, indicating a potential specialization. However, the detected supply shocks in 2021 underscore the strategic vulnerability of the EU's epoxy resin supply chain, making resilience and diversification a key consideration for the future.