The global epoxy putty stick market is starting to feel the impact of tariffs and anti-dumping measures as manufacturing companies in the United States significantly scale back production.
Epoxy putty stick technology was pioneered in the USA. Alongside Asia, it dominates the supply chain. The news that major players involved in the market are cutting down or stopping epoxy putty stick manufacturing altogether has the potential to rock the many industries these products are used in.
And there are many industries. In the world of pipework, we know epoxy putty sticks because of how quickly and easily they seal leaks and restore surface profile.
You will also find epoxy putty sticks used for wood restoration and metal rebuilding. For high-strength bonding and corrosion protection. In the automotive industry and mining sectors. Creatives and model makers use them to sculpt statues, figurines and war gaming goblins.
How did the epoxy putty stick market reach this point whereby production in the country which was its greatest innovator is pulling out? And what comes next?
Let’s get stuck in, if you will excuse the terrible and predicatable pun…
Tariffs, anti-dumping measures and the epoxy-related supply chain
Unless you have been living under a rock for the past eight months, you will have head about the Trump administration’s tariffs. Back in January, I wrote about what Trump tariffs might mean for pipe repair.
Since then, a minimum 10 percent tariff has been introduced on all imports into the US. Other countries have higher tariffs in place, such as China, Canada and the European Union. Certain goods also have specific tariffs attached to them.
Higher tariffs make it more difficult for companies in the US to import goods. Which means manufacturers of epoxy putty sticks whose raw materials come from abroad face increased production costs.
Many commodity polymers like polyethylene, polypropylene and PET were temporarily exempted from tariffs. But critical epoxy‑resin precursors like epichlorohydrin and bisphenol A (BPA) were included and faced steep duties.
Even more problematic for epoxy putty stick manufacturers was the US Department of Commerce imposing anti-dumping duties as high as 355 percent on epoxy resins imported from China, India, South Korea and Thailand.
These anti-dumping measures increased the cost of raw materials dramatically. They are believed to be the main factor behind companies slowing or ceasing epoxy putty stick production in the US.
Rising costs, disrupted supply and contract risk
Since tariffs and anti-dumping measures have taken effect, both suppliers and epoxy resin users further down the chain have reported sharp cost increases, supply bottlenecks and longer lead times.
Chemical companies working with epoxies now face volatile logistics, compliance burdens and restructuring of sourcing strategies.
Argus Media are a leading independent provider of global energy and commodity market intelligence. In April, they reported demand uncertainty was rising and buyers were reducing their reliance on US polymer supplies due to risk from further unexpected and sudden tariff shifts.
Implications for the epoxy putty market
All this impacts on US epoxy putty stick manufacturers in two ways, effectively squeezing them from both ends.
Tariffs and anti-dumping measures drive up the costs for importing raw epoxy components, making sticks more expensive to produce.
This either shrinks margins or means manufacturers have to push up prices at a time when – as noted in the last section – demand for US-made epoxy putty sticks is already dropping as customers seek supply from more stable, reliable countries.
To summarise, both making epoxy putty sticks in the US and then exporting finished products out of the country is now more expensive and challenging than ever.
Explaining why some of the biggest, long-standing names in the epoxy putty stick market are considering leaving it.
Consequences for the epoxy putty stick market
The US provides such a significant share of the epoxy putty stick market that any slowdown or stopping of production will be felt globally.
Similar happened during Covid-19, when epoxy putty sticks became almost impossible to import from China. The backlog caused by the pandemic lasted long after the final lockdown was lifted.
Although there remains an overreliance on Asia and the US, some companies realised the epoxy putty stick supply chain needed diversifying to withstand future global events like pandemics or disruption to trade.
Sylmasta for example installed the first epoxy putty stick manufacturing plant in the United Kingdom. With the UK considered a reliable trading partner, they now supply some of the biggest maintenance adhesive companies in the world.
As US companies begin withdrawing from the market, epoxy putty sticks made in Europe will likely fill the void.
What changes to the epoxy putty stick market mean for pipe repair
Epoxy putty sticks are a key material for pipe repair. Any impact or disruption to supplies is likely to have a knock on effect to the industry.
Especially as companies working in pipe repair may have been caught off-guard by the speed with which US manufacturers have cut epoxy putty stick production.
But the diversifying of the supply chain over recent years should mean the reduction in the amount of product coming out of the US does not have the same impact as when the pandemic shut down exports from China.
SylWrap leak repair kits are already insulated from whatever happens in the US thanks to Sylmasta manufacturing their own putty sticks in the UK.
Other suppliers of pipe repair products are already said to be sourcing new epoxy sticks in expectation of further significant changes coming to the market.
Epoxy putty sticks will continue to fix leaks around the world. It just might not be epoxy putty sticks made in the USA any more.
Leave a Reply