Price trend

In June, the market price of epichlorohydrin first fell and then rose. The main influencing factors came from cost and supply and demand aspects. According to the monitoring and analysis system of SunSirs, as of June 27th, the benchmark price of SunSirs' epichlorohydrin was 9,500 RMB/ton, a decrease of 2.06% compared to early June.

Price influencing factors:

Raw material side: In the first half of the month, the external price of raw material glycerol remained high and firm, while domestic demand was weak, resulting in a slight decrease in its focus. However, the cost of glycerol based epichlorohydrin remained under high pressure. Raw material propylene also experienced a decline in the first half of the month. Overall, due to insufficient cost support, the price of epichlorohydrin decreased slightly in the first half of the month. In the second half of the month, the market price of raw material propylene rose, while the price of glycerol remained high and firm, providing strong support for the cost of epichlorohydrin and leading to a trend of price increase. According to the market analysis system of SunSirs, as of June 26th, the benchmark price of propylene in SunSirs was 6,838.25 RMB/ton, an increase of 4.59% compared to the beginning of this month (6,538.25 RMB/ton).

Supply side: In the first half of the month, due to the decline in raw material propylene prices, the production cost of enterprises was low, and their enthusiasm was high. The capacity utilization rate reached over 90%, and the supply side was relatively sufficient. The market competition was fierce, and the price of epichlorohydrin showed a downward trend. In the second half of the month, the spot market for epichlorohydrin was slightly tight, with market prices showing a slight increase.

On the demand side: The downstream epoxy resin market showed weak demand in June, with limited new orders and a relatively cold trading atmosphere. The total downstream consumption of epichlorohydrin in June was about 94,600 tons, a decrease of 3.9% compared to the previous month. Overall, downstream demand support was limited, and it is expected that the market price of epichlorohydrin will mainly consolidate.

Market outlook

Analysts from SunSirs believe that the high prices of glycerol and propylene on the cost side provided support, but weak downstream demand and a cold trading atmosphere may lead to loose supply of epichlorohydrin. It is expected that the market price of epichlorohydrin will mainly consolidate in the later stage, and more attention still needs to be paid to changes in raw material prices and market supply and demand.

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