Price trend

In early April, the supply of epichlorohydrin in the market was tight, and prices showed an upward trend. In mid April, the epichlorohydrin plant resumed operation, with increased market supply and good downstream procurement demand. Under the favorable supply and demand situation, the price of epichlorohydrin was raised. According to the monitoring and analysis system of SunSirs, as of April 30th, the benchmark price of SunSirs' epichlorohydrin was 9,000 RMB/ton, an increase of 1.12% compared to early April. At the end of April, the market price of epichlorohydrin showed a downward trend, downstream demand was weak, and enterprises mainly purchased on demand. The epichlorohydrin market remained stable. It is expected that the epichlorohydrin market will maintain stable operation in the near future.

Price influencing factors:

Raw material side: In mid April, the market price of glycerol raw material increased, the low-priced supply decreased, and the supply was tight, which provided strong support for glycerol based epichlorohydrin enterprises and led to an increase in prices. In early April, some of the propylene raw material enterprises underwent equipment maintenance, resulting in tight market supply and price increases. In late April, the demand for raw material propylene decreased in actual orders, the trading focus weakened, and market prices showed signs of fluctuating decline. Overall, the raw material support for epichlorohydrin had shifted from strong to weak, and it is expected that the epichlorohydrin market will remain stable and consolidate in the near future. According to the market analysis system of SunSirs, as of April 30th, the benchmark price of propylene in SunSirs was 6,610.75 RMB/ton, a decrease of 20% compared to the beginning of this month (6,745.75 RMB/ton).

Supply side: Quzhou Juhua's 100,000 tons/year glycerol process unit restarted on April 19th last week and was operating at low load; The 63,000 ton/year glycerol process unit of Huizhou Shengda was restarted on April 22. In addition, some devices will park for a long time. Overall, the operating rate remained at around 50-60%, with slightly loose supply.

Downstream demand side: In early April, the downstream epoxy resin market supply remained normal, with a capacity utilization rate of over 50%. The overall trading atmosphere had improved, the purchasing atmosphere was positive, and the market was dominated by behavior. In late April, the supply of epoxy resin market was sufficient, and the downward trend of dual raw materials provided weak support for its cost. In addition, the pre holiday stocking ended, overall inquiries decreased, and the trading atmosphere was cold, resulting in a downward trend in the market. Overall, the downstream demand side's support for epichlorohydrin had shifted from strong to weak, and it is expected that the epichlorohydrin market will remain stable and stable in the near future. More attention should be paid to the market supply and demand relationship.

Market outlook

An analyst from SunSirs believes that the pre holiday stocking ended, the market supply and demand support was insufficient, downstream demand was weak, and on-demand procurement was necessary. It is expected that the epichlorohydrin market will be stable and consolidated in the near future, and more attention still needs to be paid to changes in market supply and demand as well as the dynamics of the raw material market.

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