SunSirs: Epichlorohydrin Market Prices Fall and Fall Again Due to Low Demand

Price trend

The epichlorohydrin commodity index on March 9 was 74.15, a decrease of 6.59 points from the preivious day, and a decrease of 44.54% from the highest point of the cycle at 133.71 points (2019-10-29), which was up 58.27%. from the lowest point at 46.85 points on September 7, 2016 (Note: Period refers to 2011-09-01 to now)

Analysis review   

Product: According to the data of SunSirs, the recent epichlorohydrin market has been falling. The terminal demand is sluggish, the production plant is blocked, the inventory is under pressure, and the manufacturer ’s intention is low. New orders are offered for profit, and the focus of negotiations is continuously falling. The downstream starting load is low. The enthusiasm for entering the market is not high. The atmosphere of wait and see was strong. As of the 9th, the average price of the epichlorohydrin enterprises was 10,500 RMB/ton, which was 13.93% lower than March 1 and 25.88% lower than January 1. At present, the mainstream quotation in the domestic epichlorohydrin market is around 9,500 ~ 11,000 RMB/ton.

Industrial chain: On March 9th, the price of propylene in Shandong was generally stable. On the 9th, the market transaction was still at 6,600 ~ 6,800 RMB/ton, and the mainstream price was between 6,600 ~ 6,650 RMB/ton. Affected by the OPEC meeting, international crude oil has plummeted, and some chemical futures prices have also fallen sharply. Currently, due to the low production and inventory of propylene plants and the shortage of market supplies, the propylene market on the 9th is still stabilizing. However, due to upstream and downstream influences, it is expected that the price of propylene may also decline, and the intensity is not small. For downstream epoxy resins, both raw materials fell, cost support was weakened, and terminal demand was poor. Manufacturers' shipments were sluggish, and the market trading atmosphere was weak. The actual order operation was limited.

Market outlook

The epichlorohydrin analyst of SunSirs believes that the downstream start-up load is low, the demand side is weak, and the market lacks strong favorable factors to support it. It is expected that in the short term, the epichlorohydrin market may be arranged to run weakly, mainly to release inventory pressure.

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