Price trend

According to the Commodity Market Analysis System of SunSirs, as of November 29th, the average price of ECH quoted by ECH enterprises was 8,075.00 RMB/ton, a decrease of 0.92% compared to the price on November 1st.

Analysis review

The market price of ECH slightly decreased in November. In early November, the trend of the propylene raw material market was relatively strong, with stable prices of glycerol as the main raw material. There was some support for the ECH market in terms of cost, and spot supply was tight. However, under the influence of expected new production capacity, the supply side had limited support for the market, and the weak demand side dominated the weak operation of the market. The main downstream epoxy resin market was operating in a sluggish manner, and the procurement of ECH was mainly on demand. In the middle of the month, the cost support was average, and the tight spot supply situation continued. Downstream wait-and-see on dips and rigid demand follow-up was still possible, but the demand side remained weak, and the market for ECH remained stable with minor fluctuations. In late November, the cost support was still acceptable, and the industry's capacity utilization rate was relatively low. Manufacturers mainly delivered contracts, and there was no pressure on the supply side to raise prices. Downstream was wait-and-see and followed up on demand, and the market was on a wait-and-see basis after a slight increase in the market.

Upstream propylene, according to the commodity market analysis system of SunSirs, the reference price of propylene on November 28th was 7,083.25 RMB/ton, an increase of 0.46% compared to November 1st (7,050.75 RMB/ton), and the cost provided general support for the ECH market.

According to the commodity market analysis system of SunSirs, the reference price for downstream epoxy resin on November 28th was 13,266.67 RMB/ton, a decrease of 4.78% compared to November 1st (13,933.33 RMB/ton), indicating weak support for the ECH market.

Market outlook

Analysts from SunSirs believe that the cost impact was average, and the tight spot supply supported the market's price boosting mentality. However, downstream purchasing intentions were insufficient, and the trading atmosphere as light. It is expected that the ECH market may remain stagnant for a short time, and more attention should be paid to market news guidance.

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