Price trend
According to the Commodity Market Analysis System of SunSirs, as of January 29th, the average price quoted by ECH enterprises was 8,125.00 RMB/ton, which is the same as the price on January 1st.
Analysis review
The market for ECH remained stable in January. In the first half of the month, raw material prices adjusted narrowly, with average cost support and low industry capacity utilization. Enterprises mainly executed contracts and self used, with tight spot supply. Downstream demand followed up with small orders after phased replenishment, resulting in a stalemate in the market atmosphere and average transactions. Holders adjusted their prices flexibly based on their own situation, and the focus of negotiations in the ECH market remained stable with little movement. In the second half of the month, cost support was limited, and spot supply was tight and continuing. However, there was a lack of strong support in the demand side. Downstream rigid demand will followed up with price adjustments, and market negotiations will focus on stability.
Upstream propylene, according to the commodity market analysis system of SunSirs, the reference price of propylene on January 29th was 6,955.75 RMB/ton, an increase of 1.27% compared to January 1st (6,868.25 RMB/ton), and the cost had general support for the ECH market.
According to the commodity market analysis system of SunSirs, the reference price for downstream epoxy resin on January 29th was 13,133.33 RMB/ton, a decrease of 0.76% compared to January 1st (13,233.33 RMB/ton), indicating insufficient support for the ECH market.
Market outlook
Analysts from SunSirs believe that the cost impact was limited, with tight supply side spot support. However, downstream pre holiday stocking was nearing completion, and the market trading atmosphere was average. It is expected that the short-term market for ECH may remain stable, and more attention should be paid to market news guidance.
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